Here's part of my latest in MarketWatch where I argue--believe it or not--that there are some good retail stocks to buy. Of course, it heavily depends on which retailers we're talking about.

This may come as a shock, but I have good news for investors this holiday season: Despite the subprime sell-off, despite the mortgage meltdown, despite the housing slide and the chilling conditions increasing check-ins at the proverbial poorhouse, there are companies that are thriving in this market, even in the final weeks of one of the toughest years in history.

This month in particular, all eyes are on consumers as we count down the days of the year's much-anticipated holiday shopping season. With deep discounts advertised in nearly every aisle or storefront, the question heavy on everyone's minds is, "Will the sales numbers prove better than expected?"

Frankly, it looks like it's going to be a real nail-biter for most retailers -- but certainly not all. Recent headlines are proclaiming discount retailers will be the overwhelming beneficiaries this shopping season. I agree, expecting Wal-Mart (WMT) to be among the leaders of the pack.

But there's another segment of retailers that many investors are overlooking: those serving a niche audience. I have my eye on two companies in particular: Urban Outfitters (URBN) and Activision Blizzard (ATVI).

If you're shaking your head at me for the mere thought of buying retailers given today's gloomy conditions, you're not alone. I've gotten questionable looks from investors every time I mention buying in the retail sector of late. Take one look at the recent consumer-spending figures, and it's not hard to see why.

Read the whole thing.