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The market surged from the open, and the bulls were back. Volume was good again yesterday as the indices took out overhead resistance. Once again, the buying was present across the board as the bears hid in hibernation.

Last week Wednesday, and before the extended weekend, I opined that retailers would have a great weekend and took a look at three stocks from the group. I received twenty emails yesterday asking me for an update and that seemed like a great plan for today's content.

Kohls (NYSE: KSS) looks great after breaking out past $54 resistance. It should keep running to $60 before any kind of substantial pull back. This is a great long above $54.50.

Update: I was wrong, I would avoid this stock. Aggressive traders can nab it at $54.55 for a quick $2 move, but conservative investors should avoid.

Next, Aeropostale Inc (NYSE: ARO) could be a great long if it can get back above $27. Taking a look at the chart you can see how $27 was support throughout the year until a large breakdown in August. Shares have yet to retake that level and have only downside ahead if shares can't break out.

Update: Hate to say I told you so, but, it never took out $27 and it's down over 10% today, short it to $19.

Finally, Abercrombie Fitch (NYSE: ANF) is an old favorite of TradeMaster Daily Stock Alerts which I have been bullish on since July. Back in July we were playing the bounce of $30 with a $40 target. But after shares quickly hit the target I was looking for $45 after a pull back. That target was hit and now the target is new highs at $55. I think we see that this year.

Update: Put a rolling $1 stop-on GTC.

Watch List

The
TradeMaster Daily Stock Alerts watch list was revisited and took to a bullish turn. Leaders as of yesterday on this list were Bank of America (NYSE: BAC) position Covenant Transportation (Nasdaq: CVTI) Wells (NYSE: WFC) and portfolio holding Nanometric Tech (Nasdaq: NANO) and for a full list of our trades and video of our current watch list CLICK.

Source: Big Rally for Retailers