After last week's key event, the retail sales number, which the market discounted as being too unrealistic (and overly seasonally adjusted) after printing at a 13 month high and attempting to refute the reality observed by countless retailers, this week has a quiet start today with no data of note due out of Europe and just Empire manufacturing (which moments ago missed badly) and the NAHB housing market index of note in the US session this morning.
The “recovery” is over, at least as far as retail is concerned.
The retail ETF (XRT) has taken out its bull market trendline dating back to the 2009 bottom.
Even more than this, XRT has not only taken out its trendline, but it has since failed to reclaim former support. Instead we’ve had a dead cat bounce resulting in a “kiss” of former support, before rolling over again.
Just days after the latest two shale casualties filed for bankruptcy protection when both Linn Energy and Penn Virginia announced prepackaged Chapter 11, moments ago Sandridge announced it too was entering bankruptcy court when it filed a voluntarily petition under Chapter 11 in U.S. Bankruptcy Court for Southern District of Texas to consummate a pre-arranged reorganization.
By EconMatters
Apple stock although appealing on the surface from a value standpoint has a lot of backward looking fundamentals from a macro product development cycle and investor ownership model standpoint.
https://www.youtube.com/watch?v=RqR7PoSoVaE
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The March/April dead cat bounce in Empire Fed Survey is back deep into contraction territory. Having surged to +9.6, May saw respondents entirely lose faith and crash back to -9, massively missing expectations of a +6.5 print (the biggest drop since Oct 2014). Under the surface everything plunged (except the number of employees which inched higher) as New Orders, Workweek, and Prices received all contracted drastically. Even hope tumbled with future CapEx expectationscollapsing by the most since June 2013.
The bounce is dead...