Swan Dive, to The Street

Something’s very wrong between CarMax, and Carvana.

CarMax’s annual sales are effectively twice that of Carvana; 26.5bln, vs. 13.67bln; source here and here.

CarMax printed its all-time highs years ago, now down over -64% from those highs.

However, just last week, Carvana posted all-time highs.

Adding to that, with half the sales of CarMax, Carvana’s market cap, is effectively ten times larger, than CarMax (source TC2000).

How does that work?

Is Carvana about to join CarMax, to the downside?

Carvana CVNA, Daily

There’s a lot going on in this chart.

First, we have the set-up, Spring-to-Up-Thrust, link here.

Next, the print and retreat from all-time highs (last Thursday).

Now, we have downside continuation with a potential trendline.

As this post is being created, CVNA, continues down; trading at 355.28 (as of 10:52 a.m., EST), down -3.41%

Maintaining short, as CVNA-25-09; stop to be moved lower to today’s session high (not advice, not a recommendation).

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.

The Danger Point®, trade mark: No. 6,505,279