Is Macy's a Harbinger of Christmas Holiday Sales?
Macy's is down 8 1/4 percent today to 17.85, or thereabouts, on heavy profit taking. I checked all of the usual suspects for news and commentary, but apparently the decline has caught both Corporate and the Financial Press by surprise, and they simply haven't had time to invent the obligatory market alibi in time to ward off additional selling. There is a rather tight horizontal neckline here at 17.85, but considering this stock was at 5-6 in March, that's a very hefty rally that's occurred without a correction. Furthermore, on the wavecount, this would be the 3rd wave down going back to the most recent high at $20.72.
There is a story out by The Wall Street Journal which attempts a clever and well heralded alibi for the decline, but the story came out at 12:11 PM, well after the decline in shares had already begun. This is very typical of how markets actually function as both the Corporate and Media interests are caught simply flatfooted and late in explaining events which have already occurred.
Apparently, we are to believe that our Economic recovery is going so well that Black Friday has now been turned into Black November with sales and promotions happening well before the Macy's Day Parade, which is the customary kickoff to the Holiday Shopping Season.
For Bears that are looking for blood in the water, this is your siren call.