Sotheby’s (BID) is a curious beast, because it’s one of the few public companies that pretty much caters just to the rich. After all, how many of us are going to toddle down to the auction to put $30 million for a piece of modern art?
Anyway, it recently had a very large bearish engulfing pattern, which was followed by another big drop the day after. I suspect that, as with 2000 and 2007, BID is signalling that rich people are going to be closing up their very fat wallets in the near future.
Here’s a longer-term view: