Remember Iconix? I prattled on about its head and shoulders pattern (tinted in yellow below) so much that I got embarrassed mentioning the symbol any more, but I did “re-mention” it in this post from earlier this year. Well, I’d never have guessed it could fall so far, but the 85% plunge is nothing short of breathtaking. I mean, just…………wow.
Just a comment cleaner as we await Jack. As you all know, the jobs report was a blow-out, which apparently has yielded a “good news is bad” reaction from the market. For the third day in a row, crude is getting demolished, and thus my commodity- and energy-oriented shorts are doing dynamite. My only loser zone was banks, which I covered promptly at the open. A great day so far! Bring it on!
Back on June 4th, I suggested that the bloom would soon be off the Elon “the next Steve Jobs” Musk, and that would express itself in the diminishment of price for SCTY and TSLA. As I put it, “One would think the market is trading Elon Musk’s reputation instead of two utterly separate companies, considering how they look like clones.”
It’s heartening to see classic technical patterns paying off again. Yesterday morning, I made great profits covering my shorts in MTW, WDC, and STX. This mornings big winner is Quanta Services, which is down nearly 20%. Central bankers or no central bankers, earnings (and patterns) still matter!
Well, all you bears have me to thank again, since my trip to Atlanta, Georgia has caused the market to complete reverse itself. The jobs report had a little to do with it too, because here’s the situation we’re in folks:
(1) Interest rates are at zero;
(2) The Fed’s credibility equals Yellen’s likelihood of being the next cover girl of the Sports Illustrated swimsuit issue;
(3) The economy is, quite evidently, beginning to poo all over itself again.
Thus, my relentless expression: “the wind is at our backs” holds sway once more.