Consumer Bellwether Stock, Walmart (WMT), Fails To Retrace Weekly Losses

Posted on Posted in Equity Markets

walmart-biscuits-pornSomething is rotten in Denmark and it isn’t the fish, I tell you. At least that’s my sentiment when I think about the precipitous drop in Walmart’s (WMT) stock price last Wednesday. Not only did it fail to recover any of its losses, but it continued to fall in price the last two trading days of this week.

Investors would be wise to not ignore this event or merely dismiss it as a company specific. The stock peaked in January-2015 and broke its uptrend channel back in May-2015 and has never looked back despite the slew of positive economic data and positive earnings reports from numerous companies over the first two quarters of the year. Listen folks, $200 billion dollar plus market cap companies do not just fall out of bed and fail to get up for no reason. It takes a lot of selling by a lot of smart people with deep pockets and also a lot of avoidance to buy by other such people as well.

Keep your eye on this consumer bellwether stock. This has a lot more to do with the overall market condition than just Walmart. Granted, we could very well see a dead cat bounce before the month closes, but I wouldn’t get too excited unless it reclaimed support above its 22-week moving average.  Be careful…

 

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