Revisiting Thursday
It’s been a few days since last Thursday’s stunning reversal giving us some time to sort out what it means. As predicted some found technical analogies to support the idea that the price action suggested a bottom was near. The…
The CPI Is A Construct
When people talk of a “price level” they have in mind the image of a level of a liquid which goes up or down according to the increase or decrease in its quantity, but which, like a liquid in a…
Stunning Reversal
The much anticipated September CPI Report came out this morning before the market opened hotter than expected. The CPI increased 8.2% year over year and 0.4% month over month – above expectations. The Futures were up big before the report…
WBA Is Deep Value
When I see a chart like the one above of leading drugstore Walgreens (WBA) I want to find out why it’s essentially straight down. For example many tech stocks have charts that look like WBA’s this year due to rising…
PEP: Consumer Staples Are The Way To Go
Pepsi (PEP) just reported solid 3Q22 earnings for the quarter ended September 3. Organic Revenue at the $225 billion food and beverage behemoth increased 16% compared to a year ago. Importantly this was due to pricing power as volume actually…
Another 75 Point Hike?!
On Friday morning the BLS reported that the US economy added 263,000 jobs in September – a solid report. But the S&P dropped 2.80% and the NASDAQ 3.80%. Why? Because we are once again in the “bad news is good…
The Subjectivity Of Technical Analysis
The technicians never cease to amaze me. The fundamental principle of Technical Analysis is: Don’t Fight The Trend. And as you can see from the trendlines I’ve drawn on the NASDAQ above: the trend is clearly down. And yet –…
Use The Bounce To Clean Up Your Portfolio
Stock markets have experienced a nice bounce so far this week but it’s just a relief rally. Nothing has changed; the bear market is by no means over. So what you want to do IMO is use the higher prices…
MU: Demand Has Collapsed
Semiconductor manufacturer Micron (MU) reported 3Q22 earnings for the quarter ended August 31 after the close Thursday. On August 9 they warned that revenue in the current quarter would come in at or below previous guidance of $7.2 billion and…
KMX: Consumers Are Scrapping Discretionary Purchases
Leading used car retailer CarMax (KMX) reported 3Q22 earnings for the period ended August 31 Thursday morning. Used vehicle sales units declined 6.4% year over year to 216,939 after consumers couldn’t get their hands on enough cars during the pandemic….