Is This A "Top" For Home Improvement Stores? Tue, Aug 14, 2018

Is This A "Top" For Home Improvement Stores?

This is a Post from the Symbol Surfing Blog from Tue, Aug 14, 2018.

Home Depot reported earnings today.

Home Depot second-quarter sales bounce back, results top estimates

That's good, right?

The initial pre-market reaction started off positive hitting $199, but as the day progressed, the stock price turned negative.

That is not good.

When a stock opens higher after earnings, then falls for the rest of the day.

Wow. Great acting. #chills

Let's look at the 1 year chart.

In the last 12 months, the stock price went from $150 to a record high of $207.

Then the stock retraced to about $175 only to rally back to around $200.

Each time the stock broke $200, the stock failed to hit the previous record high.

The stock failed to hit a new high 3 times.

There are 2 technical chart patterns this could be.

Both are bearish, the "head and shoulders" chart pattern and the "triple top" chart pattern.

Based on that, this could be the beginning of a short-term drop down to $180 or lower.

Another stock that may be in a similar situation is Lowes.

I would not buy either of these stocks right now.

It's scary question time.

If this is a top for home improvement stores, what does that say about the consumer?

How will other related industries, like real estate, be affected?

Wait a second.

Isn't that a little early to be asking those doom and gloom questions?

If you are asking yourself those 2 questions, you are not alone.

Mark Cuban seems to be worried as well.

Mark Cuban owns just a handful of stocks and 'a whole lot of cash' because he's worried about the market

Of course, Cuban has been an outspoken critic of Trump.

Tue, Aug 14, 2018 HD @ $193.10

Tue, Aug 14, 2018 LOW @ $98.40