While Australian retailers are reporting excellent holiday sales most US based retailers continue to struggle. One exception is Amazon, which reported its best sales ever.

I created this retail and apparel watchlist using stockcharts candle glance.

• Volcom (VLCM) has significant growth ahead of it and at current prices is worth consideration.
• Amazon (AMZN) is a great company at a good price. However, this best in breed of online retailers still high multiples could bring a world of hurt, in the short term. Especially if this recession deepens and extends through to the end of 2009. At most I’d buy a third now, but I’m actually waiting for a shot at this great company at a great price. Amazon is a David Gardner favourite, he owns it personally.
• Tuesday Morning Corp. (TUES) would be investors should first check for the likelihood of bankruptcy.
• Gap Inc. (GPS) has long been a cash machine and now appears to be finally reconquering design. It is certainly look a closer look.

Those looking for an Australian play on retail should consider:

• WESTFIELD GROUP STAPLED (WDC.AX) This Australian listed property trust, or AREIT, offers exposure to super regional shopping centre markets in Australia, New Zealand, USA and UK. It is a falling knife is a sector that has been falling hard. Focus on the balance sheet and monitor for signs of positive investor sentiment.

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