The Limited Brands (LTD), which operates both Victoria's Secret and Bath & Body Works, is a sold big cap play in the retail apparel sector," says Leo Fasccioco.

In his Ticker Tape Digest, the technician focuses on stocks that have broken out of basing patterns. He says, "The stock's 12-week, 'W' base is picture perfect. The breakout on the gap move is ideal."

Retailers appear to have been rescued at the last minute, according to data from the International Council of Shopping Centers. Shoppers looking for deals the week before Christmas -- and making up for the day lost to stormy weather on the East Coast -- spent aggressively, sparing the retail sector a dismal 2008-like performance.

The healthy conclusion to the holiday season led to a positive change from November and made December one of only three months (including September and October) in which retail sales increased year-over-year.

Sluggish retail sales in November didn't stop retailers from adding bodies. A report by outplacement consulting company Challenger, Gray & Christmas, reavealed to BloggingStocks, shows that retail sector payrolls grew to 321,300 in November, an improvement from the previous month's 233,700. This follows 54,200 retail hires in October, bringing the total number of seasonal retail employees up to 375,500. Already, that comes close to the 384,300 hired from October through December in 2008. The analysis is based on data supplied by the Department of Labor.

High expectations for the holiday season likely contributed to the up-tick in hiring. The estimated 0.5% growth from Black Friday 2008 to Black Friday 2009 was a disappointment, and November sales were off 0.3%, surprising analysts, who expected the trend to go in the other direction. Costco (COST) and Limited Brands (LTD) came out ahead, but most retailers, including Target (TGT) and Macy's (M) struggled. Saks (SKS) is also suffering from an anemic luxury goods market.

Two months of momentum and Black Friday weren't enough to make November a winner for retailers. The holiday shopping season kickoff was up only 0.5% year-over-year, and the month as a whole saw retail sales fall 0.3% year-over-year. As if the drop weren't bad enough, it's a decline on top of last year's November retail freefall, which means we went from bad to worse.

Meanwhile, analysts had expected a strong increase. U.S. government data on retail sales isn't due to be reported until December 11, 2009, and it's expected to be a better indicator of the sector's performance. The data released Thursday doesn't include sales by Wal-Mart (WMT).

Yamana Gold (NYSE: AUY) closed at $11.79. Gold is recently up 0.40% to $1093.70 according to Bloomberg. AUY November option implied volatility is at 60; January is at 59; versus its 26-week average of 59, according to Track Data, suggesting non-directional price movement.

Limited (NYSE: LTD) closed at $17.89. LTD reported comparable store sales decreased 2% for Q3. LTD is expected to report Q3 EPS on November 19. LTD November option implied volatility is at 60; December is at 56 above its 26-week average of 53, according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Consumers are finally spending more, with September posting the first gain in more than a year. The International Council of Shopping Centers and Goldman Sachs (NYSE: GS) found that retail sales inched 0.1% higher last month. It doesn't seem like much, but a gain when you anticipate a fall is good news magnified. But, it came at the expense of great deals and other tools to entice somewhat hesitant customers into stores.

Kohl's (NYSE: KSS) and Limited Brands (NYSE: LTD) reported sales increases in September for stores open more than a year. J.C. Penney (NYSE: JCP), Macy's (NYSE: M) and Target (NYSE: TGT) posted declines, but they were better than expected. Delayed school openings thanks to a late Labor Day helped push to September sales that might have occurred in August otherwise.

Of course, all eyes are on the coming holiday season. The National Retail Federation forecasts U.S. consumer spending of $437.6 billion – up only slightly from $433.7 billion four years ago. So, we still have a lot of ground to make up before we can celebrate a recovery. As long as the situation is staying steady, though, we'll at least have a solid starting point.

Here are some highlights from last week's earnings coverage from BloggingStocks:

• Aeropostale Inc. (NYSE: ARO) strong Q2 results beat expectations due to rising same-store sales.
• Agilent Technologies Inc. (NYSE: A) Q3 earnings topped low expectations and revenue declined.
• Analog Devices Inc. (NYSE: ADI) posted better-than-expected Q3 results but shares fell on weaker margins.
• Baidu Inc. (NASDAQ: BIDU) CEO said its new advertising efforts will boost sales over the long run.
• Barnes & Noble Inc. (NYSE: BKS) had a better-than-expected Q2 profit but same-store sales fell.
• BJ's Wholesale Club Inc. (NYSE: BJ) reported solid Q2 numbers and raised its full-year guidance.

Limited Brands (NYSE: LTD), whose colleagues include Gap (NYSE: GPS) and Hanesbrands (NYSE: HBI), is one sexy company. It operates the Victoria's Secret chain of stores among other concepts. However, it's been having trouble increasing sales and income during the recession -- like every other retailer out there, of course. But the stock has been strong, and the bulls have yet more evidence that their thesis on the business might be justified.

Limited Brands reported second quarter results Wednesday after the close. Its adjusted earnings were 19 cents per share versus 27 cents per share in the comparable period last year. Total sales dropped 9.5%, and same-store revenues collapsed 9%. With numbers like those, where do I get the idea that the bulls might have a case?

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• AnnTaylor Stores Corp. (NYSE: ANN) reported a smaller-than-expected Q1 loss as sales slumped.
• Barnes & Noble Inc. (NYSE: BKS) smaller-than-expected Q1 net loss sent shares higher.
• Children's Place Retail Stores Inc. (NASDAQ: PLCE) solid Q1 results were in line with expectations.
• Dick's Sporting Goods Inc. (NYSE: DKS) posted higher-than-expected Q1 results but same-store sales fell.
• Gap Inc. (NYSE: GPS) lower Q1 earnings beat expectations and lower revenue was in line.

Limited Brands (NYSE: LTD), the retailer that runs stores such as Bath & Body Works, Pink, and the sexy Victoria's Secret, issued its Q1 numbers after the bell on Wednesday.

The bottom line didn't look bad. Not that it looked great, mind you. The company earned 1 cent per share. The fact that there was any profit at all was big news. According to analysts, a loss of 3 cents per share was more likely.

The revenue picture was not so pretty, however. Net sales dropped by 10%. And same-store sales decreased 7%. I guess buying lingerie isn't a top priority during a time when jobs are being cut and consumers look in terror upon their 401(k) balances.