KSS

Kohl's Corp

Stocks

Don't Buy the Kohl's Stock Rebound; Buy These 2 Stocks Instead

Retail stocks have been on a tear lately, causing investors to question whether the retail sector really is doomed. But that could not be farther from the truth, even for a stock like Kohl's Corp. (NYSE: KSS).

Kohl's stock is up 60% in the last six months, and the company recently surprised analysts by boosting fiscal 2017 guidance from $3.72 to $3.92 to a new range of $4.10 to $4.20.

Despite that rebound, Money Morning Chief Investment Strategist Keith Fitz-Gerald made it crystal clear last week when he offered his top five reasons why the retail sector - and Kohl's in particular - are still kryptonite for your portfolio...

Stocks

Kohl's Guidance: Five Things You Should Know

Kohl's boosted fiscal 2017 guidance from $3.72 to $3.92 to a new range of $4.10 to $4.20 on Monday, in a move that caught Wall Street analysts flatfooted.

That's got a lot of investors wondering if the "retail ice age" we talk about frequently is over. And more specifically, whether or not they should buy Kohl's stock…

…not on your life.

The "Retail Ice Age" is a long way from over, and there's only one way to play it.

It's true the retail industry as a whole is benefiting from stronger consumer confidence, a booming stock market, and better jobs data. But "over," like Wall Street wants you to believe?!

No way.

Here are five reasons why...

Stocks

SHLD and KSS Are Perfect Examples of This Rally's Effect

On Wednesday, I covered what makes these markets look safer than they really are.

They're being led ever higher by behemoth leadership stocks while the VIX plumbs ever-lower lows. Investors are doing very little hedging. Some of the brick-and-mortar retail companies we've targeted are getting an extension put on their death sentence as they're being lifted with the rising tide.

But that doesn't mean that these companies are suddenly better. And it doesn't mean that the positions you are already in that are preparing for their demise are now worthless.

Far from it.

Here's what the VIX is missing, and how our positions in SHLD and KSS have been affected...