Under-Performance in Apparel/Clothing/Accessories Industry to Continue
LULU cut guidance this morning and finds its stock down ~15% today. This is hardly the extent of the pain this name has suffered though as it’s down 55% since its 2012/2013 peak of ~$80. All we have to say…...
Thin Red Line
Forget everything I’ve said about the Nikkei over the past 12-18 months; all the words, analogs and postulations. Instead, focus on the thin red resistance line (1) in the chart below. It is the only thing that matters to the…...
INTC Breaking ~14 Yr Resistance, to Accelerate Outperformance of Semis
In the chart below INTC is breaking above ~14 year resistance line (1). Assuming the week’s gains hold this likely implies that the semi group outperforms on an absolute and relative basis vs. the broader market in accelerated fashion over…...
IBEX to Outperform SPX
In the chart below the ratio of the IBEX vs. SPX is attempting to break above long-term resistance line (1). Look at how well-behaved the ratio b/t these two assets has been across this line historically. Also note the precipitous…...
White Space
This post is not an impellent to purchase semi stocks – I’ve done that ad nauseam this year in the ‘Semiconductor’ category on the site. Instead, this post is an update to show that there is nothing but white space…...
How Much Value in this Name?
Super-Valu? In the chart below SVU is breaking above resistance line (1) which has been in place since 2010. Coupled with a continued favorable back-drop for grocers, I wouldn’t be surprised if this break-out helps push the stock materially higher…...
Significant Upside Remains for Equities over Remaining Few Years of Bull Market
I’ve updated the 4th-5th-6th consecutive annual gain analog below. The 1988-1990 and 1994-1996 plots are DJI and the 2012-2014 plot is SPX. Note how closely these things continue to track. Though the 2012-current plot had resembled 1988-1990 so closely for…...
Reading the Tea Leaves
The reading industry has been universally loathed by the street for the better part of 15 years. By reading I mean book retailing. The initial onslaught of abhorrence came during the late 90s during the emergence of the internet. Web…...
Clandestine Indian Bull Market
I’m embarrassed and quite disappointed in myself to have admit this, but I completely dropped the ball on India this year. Indian stocks have experienced a clandestine bull market this year, with the Sensex up an incredible +17% vs. ~+3.5%…...
Signs Point to Additional Near-Term Downside in Riskier Assets
In the chart below I plot the R2K over the past few years along with the Dow from 1989-1991 as well as a plot of the recent price action of the VIX. At (A) the R2K put in a fairly…...