After I did my Whole Foods Bear Market post late last month, I started hunting around for other interesting parallels: that is, stocks which had topped out around 2006-2007 and then went into a complete, utter, and stunning free-fall. The additional requirement, of course, was that they be exhibiting a topping pattern as of right now. My thesis is that these are sample “canaries in the coal mine” which illustrate far better than the insanely-manipulated /ES market how unhealthy equities are.
First is Pier 1 (NYSE:PIR), that purveyor of throw pillows, scented candles, and coconut monkey dolls:
As mentioned before there is, of course, Whole Foods Market Inc (NASDAQ:WFM), whose overpriced food is appealing during opulent times but, as grocery shoppers begin to clip coupons, not so much:
And finally, named for my favorite city in America, there is Las Vegas Sands Corp (NYSE:LVS):
My confidence in the new “wind at our backs” bear market is fully intact, in spite of the comical mayhem that took place on Friday. I’m just going to keep selling into strength. I hope these examples help illuminate part of my reasoning.