Sifting Through The Rubble

There are sure to be plenty of post-mortems over the weekend; usual suspects giving us their assessment on what’s already happened. 🙂

Sometimes the question, is not ‘what’s happened’, but ‘what has not happened’.

That’s where the opportunity may lie.

Market Implosion

Over the past week, there were wide price bars, with action unstable in all major indices (ETFs): DIA, IBB, IWM, IYM, IYR, QQQ, SOXX, SPBIO, SPY, XLF, and XOP.

However, what did not implode (completely), are the car dealerships; specifically, CarMax and Carvana.

For this update, we’ll look at CarMax.

CarMax, KMX, Weekly Close

On a close basis, KMX, has bounced off the lower wedge boundary and is near the resistance area (magenta line).

Price action could be positively biased in the coming week as a result of ‘tax refund’ car buying (not advice, not a recommendation)

According to ‘Car Questions Answered‘, it’s a yearly ‘thing’.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

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