Charts of Note
- Thread starter darkhorse
- Start date
IWM - Not fighting this move but not believing it either.
Too manic to be healthy. Feels like an algo-driven ripper.
The world simply hasn't changed that much in 24 hours, and a stronger than expected jobs report actually reduces the odds of QE3 (while doing little for looming contraction in corporate profit margins).
Retail stocks have held up surprisingly well throughout the last year â this despite high levels of unemployment and even higher levels of underemployment.
For retailers catering to low income spenders, a material portion of revenue growth has come because a large segment of the consumer base has migrated from the middle class, to the low-income consumer group.
This can be seen by the relative difference between middle class retailers like Abercrombie & Fitch (ANF) â down 62% from its 2011 high, and discount retailers like Family Dollar Stores (FDO) â up 36% over the last 12 months.
Retailers catering to the affluent initially held up as well. With unemployment much lower for workers with hefty incomes, spending patterns remained stable. Even affluent spenders who dealt with unemployment still had the ability to spend by tapping into savings or established credit lines.
But as the global economic picture has continued to deteriorate, both discount and luxury retailers are dealing with lower levels of spending.
Last week Harley Davidson (HOG) CEO Keith Wandell issued some sobering comments in conjunction with his companyâs disappointing second quarter revenue figures:
"â¦weâre sort of swinging back into being more conservative and trying to figure whatâs going to happen with the global economy and the election and where our economy is headed.â
HOG dropped sharply on the day and, while it has recovered somewhat from last weekâs lows, the stock is well off its highs and in a bearish pattern.
The entire retail sector is looking more and more vulnerable as key components issue poor revenue numbers and lower guidance. Weâve got our eye on a number of high-growth names that have strong potential to disappoint investors, along with a bearish perspective for ETFs representing retailers in general.
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The transfer of wealth continues, the uber rich will keep spending and investing while some of the middle class is set to join the lower class and the upper middle class will be downgraded to middle class. As for the lower class, they can't get much lower thanks to govt handouts. Not much upward mobility left and more like middle class gutting.
Luxury brand like Hugo Boss is actually doing quite well with many of the item out of stock on the web store.
Thus, the stock market will continues to make new multi year highs despite the cry of recession. Minimum and low wage in exchange for low PE. Class warfare will continues.
Luxury brand like Hugo Boss is actually doing quite well with many of the item out of stock on the web store.
Thus, the stock market will continues to make new multi year highs despite the cry of recession. Minimum and low wage in exchange for low PE. Class warfare will continues.
Indu is ready to rip. Divergence, MA bundle bounce, C wave, and what better time for the "economic stabilization fund" to blast the shorts then when volume is light....
"Bang" for the buck.........
:eek:
"Bang" for the buck.........
:eek:
Airborne...
:eek:
Money center banks (C, JPM, GS) breaking out of solid basing patterns (BAC and MS are lagging but still above key EMA resistance).
Valuations are low enough to start attracting value buyers and sentiment is depressed (plenty of room for improvement and buy orders).
Yields are so-so - JPM attractive at 3.3%, C hardly worth mentioning, and GS paying out 1.8%.
Short interest fairly low - would be more helpful if short-covering were part of the mix, but still a very healthy looking breakout as opposed to fundamentally vulnerable growth names hitting new highs with huge risk of rolling over.
