Another Nightmarish Week, Another Illogical S&P Surge

As COVID-19 spreads across the U.S., the economy is teetering on the verge of collapse. Initial jobless claims came in at 6.6 million yesterday, bringing the three-week tally to nearly 17 million. The unemployment rate is estimated to have already surpassed its 2008-2009 recession level. Economists at Goldman Sachs, Morgan Stanley and the IMF predict…

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Booking Stock Eyes Elliott Wave Support Near $1000

Social distancing measures in response to the coronavirus pandemic forced the global economy to grind to a halt. Among the many sectors that are now suffering, travel was probably hit the hardest. The market quickly reflected the new reality, punishing airline, restaurant and retail stocks. Booking Holdings, the leading player in the online travel industry,…

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S&P 500 Elliott Wave Analysis Giveaway

The S&P 500 crashed by as much as 35% in just one month. And while the coronavirus outbreak was totally unpredictable, the crash it caused made perfect sense. Elliott Wave is our favorite method of analysis, but as the market kept rising we decided to back it up with fundamental data. The result was a…

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Burlington Bears Returned with a Vengeance

Along with airlines and travel, retail has been among the industries hit the hardest by the coronavirus epidemic. Social distancing policies to contain the spread of the disease resulted in mall and store closures around the world. Burlington Stores is one of many victims. BURL stock exceeded $250 a share in mid-February 2020. A month…

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3i Stock Selloff Stopped by Fibonacci Support Level

3i stock was hovering around 1100 pence per share when we wrote about it in late-October 2019. The stock was up almost 1000% in ten years and few thought it was vulnerable to a significant decline. That was five months ago – before the coronavirus pandemic and the global stock market crash it triggered. But…

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S&P 500, Against All Logic, Re-Enters Bull Market

The coronavirus pandemic forced the global economy to grind to a halt. Major U.S. stock market indices made their fastest plunge into bear market in history. In less than two months, DJIA and the S&P 500 lost 38.4% and 35.4%, respectively. “The virus is just starting to spread in the United States, the market is…

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Rational Stock Got Cut in Half. Is the Pain Over?

The last time we wrote about Rational AG was on February 5th. The stock had just reached an all-time high of 740 euro a share in January following a 17-year uptrend. With the price hovering around 690 at the time, new records seemed to be just a matter of time. On the other hand, no…

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Ulta Beauty Looks Attractive Amid COVID-19 Recession

In response to the spreading COVID-19 epidemic, Ulta Beauty decided Tuesday to join many other businesses in closing its stores across the U.S. Even without that drastic measure, social distancing was going to hurt Ulta’s business anyway. Sensing where things were going, the market pushed Ulta stock down very quickly. ULTA was trading above $300…

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Dow Jones Transports Ready for a Rebound?

The coronavirus pandemic is wreaking havoc on the global economy. Governments are closing malls, restaurants and literally all kinds of social gathering places, and even putting entire cities on lockdown. In the meantime, stock market indices are in free fall. The S&P 500 is down 28.7% YTD and the Dow Jones Industrials lost 35.2% since…

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SEIC Stock Enters Elliott Wave Buy Zone

Four months ago, we published an article on SEI Investments (NASDAQ:SEIC), saying that the “stock can lose half its value in a recession.” At the time of writing, November 5th, 2019, the economy was still firing on all cylinders and most analysts saw nothing but blue skies. And indeed, the unemployment rate was at a…

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Three Years Ahead of the COVID-19 Airlines Disaster

As the coronavirus pandemic rages on, governments are taking measures to restrict unnecessary travel and mass gatherings. The airlines sector is probably the one being hit the hardest by the restrictions. The high fixed costs and huge debt loads of the airlines make them extremely vulnerable to economic downturns. With international and domestic travel on…

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Nikkei Down 30% on COVID-19 Fears. Time to Buy?

The last time we looked at the Japanese Nikkei 225 was on November 19th, 2019. The index was comfortably trading above 23 400 and the uptrend seemed very healthy, on the surface at least. And indeed, in December, the price reached 24 116. However, the fact that prices have been rising in the past didn’t…

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Five Months Ahead of HollyFrontier ‘s Collapse

Oil stocks plunged across the board Monday following an epic OPEC+ negotiations failure. The price of oil was down over 31% yesterday after Saudi Arabia launched an all-out price war. One of the many casualties was HollyFrontier, which we covered over five months ago. HFC tumbled almost 16% to close Monday’s session at $24.10. And…

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Disney Stock’s Weakness Exposed by COVID-19 Panic

The coronavirus panic caused indiscriminate selling of almost every stock, regardless of the underlying company’s position. Among the hardest hit blue chip stocks was Walt Disney. The bearish logic behind the 28% selloff is that a big part of Disney’s revenue comes from its movies and parks. People fearful of infection would rather stay home…

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Bank of America Lost 30%, but Sent a Warning First

The coronavirus panic coupled with the Fed’s emergency 50 basis points rate cut sent bank stocks plunging very quickly. Bank of America, one of the “too big to fail”, is down almost 30% from its December 2019 high. However, BAC is in a much better financial shape than ten years ago. In fact, the company…

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