The retail sector is all over the news. Unfortunately, the headlines are almost all negative. As unemployment risks remain high, consumers refuse to spend.

Sometimes, all the reasons others are shunning a company are the same reasons to initiate a position in it.

Retail investors had a rough go of things in the first half, but since the March lows of all the markets, the Standard & Poor’s Retail Index is showing progress toward its 52-week high of 427.13.

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Investors need to be ready for a downright nasty earnings season. Already, we are seeing some companies cut their earnings estimates by drastic proportions. If you are not prepared, it could get painful.

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Even the strongest retail brands are suffering heavy losses as consumers flock to low-cost stores. Andrew Snyder says this spells doom for Under Armour (NYSE:UA). The company has a strong marketing strategy, but its sales estimates are too optimistic for a retailer of expensive niche clothing. Andrew says the stock is overvalued right now, creating a good chance for a profitable short play.

With the economy eroding at an alarming pace, it is no wonder investors are turning away from their former retail haunts filled with trendy, over-priced items.

Stores like Whole Foods (NASDAQ:WFMI) and Trader Joes are watching their customers head to low-cost competitors like Wal-Mart (NYSE:WMT) and Safeway (NYSE:SWY).

It is no surprise to see an ultra-cheap retailer like 99 Cents Only Stores (NYSE:NDN) climb its way to the sole spot on the list of companies reaching 52-week highs today. The global economic crisis has actually been the best thing to happen to the company’s share price in a long time.

The rationale behind the positive run is obvious. When the economy is in the gutter, consumers have less money to spend on the things…

Today, we have another recession proof way to score big money, while even Buffett is fleeing this country. Wayne even includes a few smaller companies that should do handsomely over the next few months.

“The rise in consumer credit delinquencies is consistent with a rapidly slowing economy. Stress in the housing market still dominates the story, but it’s a broader tale.” James Chessen, ABA Chief Economist.