3-Year sales figures very weak in of the stock markets’ best sectors

The S&P 500 has been in a short-term bullish trend since early December. Its bullish trend line is drawn from that point to the January 23 low. A parallel line put just above the December 13 high shows the bullish trend channel. The price broke the top line on March 1, but a two-day bearish reversal brought it back inside a day later. This pattern, a failed escape above, is a sign of weakness. Sure enough the price has fallen since then.

The Dow followed a similar pattern to the S&P, but the price has not fallen as much. This isn’t surprising as the stocks in the Dow are defensive in nature.

The bullish line for the Nasdaq Composite was drawn from the November 4 low and the December 30 low. The parallel line, making up the trend channel, is placed at the November 25 high. It is obvious that the highs have not kept pace with lows as there is an increasingly large space between the highs and the top of the bullish trend channel. This is a wedge. It is a sign of weakness as it shows a lack of demand.

The Federal Reserve’s decision to “increase rates” seemed to have two main effects: it hurt the bank stocks because people thought their expenses have increased and people believed the complete falsehood that the economy is heating up. There is a world of difference between our economy that isn’t sinking hard – and true growth.

Both the Automobile and Building Sectors had the most growth since March 1: 4.5%. Here are the 3-year sales figures from the Auto sector:

SYMBOL 3-Year Sales
CYD -29
OSK -6
HMC -17
DAN -6
GT -8
F 2

The average is 0.45. If TSLA is omitted, the average is -4. In either case, it’s utterly terrible. The stock market is being pushed up by nothing. It won’t take much to make the stock market tumble.

Here is the chart of the S&P 500.

Put in your name and email for our
free weekly stock newsletter

You'll get:

* Weekly Emailed Stock Market Analysis

* Trading Educational Tips - once or twice a week



  • Every trader, no matter how good, has losses.


    The only ones that don’t are Ponzi schemes.

  • What kind of results will I get?


    You’ll get more wins than losses and average gains bigger than losses.

  • But, you need more than just good trades!


    Too much risk leads to disastrous losses.

    Geometrically increase your results with the correct use of risk.

  • How do I get started?


    Click subscribe (on the menu) and make a selection.

    Submit and you’re set to go once you receive a return email.