Follow up to my 9-28 post on negative price action in Macy’s. The XRT, retail etf, has broken down below recent support at the $51 zone, and is now trading as of this writing at $49.80 off $.95 or 1.85% on the day on pretty heavy volume. Large option trade was seen in this etf as well….Customer bought 7,000 of the November expiration $50-48 put spread for $.54 while simultaneously selling 7,000 November $53 calls at $.38 for a net cost of only $.16. Next key level of support exists at the $49 level which held multiple times back in May, June and early July. Price action appears to indicate another run down to test that level is possible in coming days, with the 200 day sma at $47.65 not out of the question if things get really ugly. As for Macy’s, the stock is off a point from my initial article now trading at $33.90 and the November $32 puts I highlighted have moved from $.97 up to $1..20 for a gain of 24% in less than a week. The price action in retail names certainly runs contrary to all the media reports of strong consumer confidence, rising income levels etc etc. A likely trigger for today’s move was the announcement by Amazon (who else??) that they were raising their minimum wage to $15 per hour, which will pressure profit margins of traditional retailers as they likely will be forced to follow suit for competitive reasons to retain and/or attract workers.