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
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