AutoZone, and its massive 200-point gap, have been on the ‘watch list’ for some time.
The last major gap of 67.56-pts was filled in a near-Fibonacci 34 (-2) days.
So, we at least know that it can, and has happened before (not advice, not a recommendation).
AutoZone AZO, Daily
Price action’s been hitting and bouncing off support for nearly two months; finally, penetrating and closing below that line, last Thursday.
Stay Tuned
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Nomura states that VIX futures positioning are near record lows. August through October is the highest volatility stretch of the calendar year. McCulloughs Hedgeye models are claiming we’re in a quad 3, meaning more violent sell offs and higher volatility. Should be a bumpy road ahead.
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Thank you for the comment and data.
While everyone (including myself) is waiting for some massive market sell-off with A.I. (semiconductors) leading the way, what we have instead, is a market that does not (so far) support a ‘universal’ downside outcome.
Meaning, other markets have already imploded like DUOL, SPOT, NFLX and so on.
Semiconductors have held up but are at an inflection as stated in yesterday’s update. At this point they could go either way.
The one thing still missing from the semis, is they are a commodity … and commodities typically finish their move in spectacular fashion with a blow-off.
Silver and less so, gold are good recent examples … I guess we can throw in CAR as well.
If AZO posts a new daily high at the next session, it points probability to the upside (not advice).
If the semis do the opposite, a new daily low, then down is more probable (again, not advice).
I appreciate the comment.
Regards,
Paul
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