Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Monday, the 16th of August.
The meltdown last week, the worst in 14 month for the markets, was not a good one for most investors, but it was not unexpected based on our Trade Triangle technology. This week, it's a whole new picture for the markets as we have earnings coming out on some big box retailers, JC Penney (NYSE:JCP) on Tuesday and Sears (NASDAQ:SHLD) on Thursday.
There have been a lot of acrimonious events surrounding JC Penney. Bill Ackman, who just resigned his board seat last Friday, now has an agreement in place with the company to unload his shares over time. Mr. Ackman owns 17.7% of JC Penney and is its largest shareholder. One can only guess how much money he has lost in this ongoing shipwreck of a stock. Finally, he's woken up and realized that he's a hedge fund manager, not a manager of a big box retail store.
Next comes Sears, who reports earning on Thursday and is run by another hedge fund manager, Eddie Lampert. Why would these two hedge fund managers want to get into and manage old fashioned big box retail environments in a digital world? It is beyond me, but there is something that is interesting in one of these stocks that I want to share with you today. See if you agree with my analysis.
As always, I will be looking at all of the markets and bringing you my latest thoughts on what I see and what the Trade Triangles are showing us.