Don't get lulled into thinking the major market selloff on Tuesday was a one-off. Without question, the fact stocks didn't fall through a trap door on Wednesday was a feather in the caps of the bulls. All the elements were in place for a follow-through plunge: a vicious, cowardly attack out front of the U.K. Parliament, rising fears on the Trump/Ryan healthcare bill passing and a growing number of forecasters coming out from under their rocks to proclaim the bull market is about to die. Not helping matters was a continued drumbeat of retail death stories such as Payless possibly closing 500 stores, Bebe (BEBE) on the verge of shuttering 170 stores and Sears Holdings' (SHLD) CFO spreading #fakenews
Kudos to Sears Holdings Corp. (SHLD) for finally admitting what everyone already knew: it's almost dead. As TheStreet broke the news on Twitter Tuesday evening, Sears indicated in its newly filed annual report that "substantial doubt exists related to the company's ability to continue as a going concern." For those clickbait-loving headline writers out there with no financial services training: what Sears essentially said is that yes, it's unsure if it could stay in business. Well, duh. Sears' cash position has melted from a high point of $1.7 billion for the 2009 calendar year to a mere $286 million to close out 2016. Revenue hasn't grown since the credit boom lifted all ships in retail in
Broadly speaking, moving averages are used by technical strategists to help to judge if short-term and long-term directional momentum in a security is intact. Right now, the VIX, also known as Wall Street’s fear gauge is creeping toward the long-term average, which suggests that it could attempt a firmer breakout, in the parlance of chart watchers. To be sure, the VIX remains well below its historical average of 20, but the gauge is a sign of how much investors are demanding to pay for protection 30 days in the future for price swings in the S&P 500 index (^GSPC).