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Reaching fresh historic highs above 5,350 points on the S&P 500 broad market barometer of Wall Street now gives solid grounds for eventually purchasing some lagging stocks of U.S. retailers. At least, this represents a reasonable approach for the pool of retail firms, which previously announced better-than-expected quarterly numbers, plus positive forward guidance in terms of both revenue and profit lines.

We were wondering only three weeks ago, when the proper moment would arrive for buying shares of Home Depot. We also discussed enough details of a very good performance by Home Depot's from a business point of view. Yet, one of the main conclusions was that all the gains are solid Q1 numbers could be initially capped below $350 per share for a while, so that a possible correction may lead to testing 10% to 15% lower levels at first. Further developments on Home Depot's technical charts exactly validated this view, yet a drawdown in prices was limited by $323.77 per share at late May. Prices consolidated above $325 since that moment, with a short-lived rebound to $335, and then the volatility lessened to a rather narrow range between $327 and $330 per share.

Wall Street indexes' rally expansion this week may serve as a real catalyst to raise the demand on well-discounted stocks of the economy retail segment like McDonald's, Costco or Home Depot, as is already the case with step-by-step climbing Walmart. U.S. job data already prompted FedWatch Tool to reflect the shift in the market's attitude to chances on sooner-than-later timing for the first interest rate cut, with less than 32% of futures traders believing in the Federal Reserve's (Fed) no-change stance in September, and less than 20% of them feeling Fed governors may keep stubborning till December. Meanwhile, hitting $3 trillion in market's value by NVidia's AI flagship creates a nutrient medium not only for other AI-related companies but also for the rest of the market.

Outperform ratings for Home Depot by most investment houses makes it all the more likely that the stock may be picked up from its current lows, without waiting for a re-test of any lower price range - between $300 and $315, for example. Therefore, using the tactics of buying it now and holding until recovery to $350 again, keeping in mind upper levels like $400 for the mid-term, with a plan B of adding more purchases if the price would finally approach $300 per share, would be a smart strategy compared to just waiting endlessly for better levels to enter.