Retailers for April? Amazon?

I'm not hearing much about the retailers these days. That should change come earnings season, but by then I hope to be taking profits. RTH is the Retail Holders Exchange Traded Fund. The holdings consist of a bunch of companies that sell stuff to us:  Walmart, Home Depot, Best Buy, Walgreen's, Target, Amazon, etc

[caption id="attachment_83" align="aligncenter" width="622" caption="RTH - Retailers Holdings"][/caption]

RTH looks interesting here. The false breakdown after the Japan disaster took RTH down under support to fill that Gap from early December. This could cause a nice squeeze that could take RTH to new 52-week highs. After the gap back above that key 104 level last Wednesday RTH has followed through nicely retesting the 106.75 resistance. If we take that out I would be a buyer of retailers. The question becomes: "Which One?"

I like Amazon here, AMZN. Similar price action to the RTH. AMZN is the 3rd largest holding and represents roughly 11.25% of RTH. A breakout above 182 at the same time that RTH takes out it's resistance should take AMZN to new all-time highs.

[caption id="attachment_84" align="aligncenter" width="622" caption="AMZN - Amazon"][/caption]

Risk Management here is key so we want to make sure that these breakouts hold. If I decide to get involved in this trade I will most likely put in a stop loss below those key support/resistance levels discussed above.