On A Closing Basis

The goings-on, in the car market, new or used, are unprecedented, link here.

The video is clear; the market has already imploded.

Carmax (KMX) seems to be an accurate reflection of that, with it being down over -62%, from its all-time highs.

However, for some mysterious reason that’s (almost) sure to come out later, Carvana, is only down only -17%, from its all-time highs.

Carvana CVNA, Daily Close

On a close basis, CVNA tested resistance, posted an up-thrust on the 18th, then reversed.

Adding to the intrigue, that up-thrust was on Fibonacci Day 13, from all-time highs.

Referring back to Livermore’s criteria, link here, if the trade meets requirements (i.e., up-thrust), then execute.

In this case, that meant to go short (not advice, not a recommendation).

Short trade: CVNA-25-11, with stop at 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