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

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…

Adam Lass says the vast majority of retailers are ripe for shorting as a new era of thrift grips the US. Aside from bargain stores like Wal-Mart (NYSE:WMT) and the 99 Cents Only Store (NYSE:NDN), Adam says investors should buy put options on retail firms. And the best time to do this is when they talk of “better times to come”…

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.