And it's effected
My affection for you
And the rest of your kind
Just as expected
- Affection Rejected, The Records, 1979
Kudos to anyone who knows that album, one of my faves from college days. Although the song "Teen-a-rama" gives me the creeps now that I am more than twice as old as I was then.
The affection the stock market heaped on Home Dept yesterday as it made nice on earnings was huge. And so was the relentless selling that took place starting in the premarket.
When all was said and done, the day will go down as a high volume gain - officially. But when the high price is set at about 7am NYT and the next seven hours were spent falling (there was a two-hour respite into the close) I put all the day's volume in the negative category. As such, a ton of money flowed out of the stock that day.
Home Depot peaked above 48 yesterday. Last August it was down in the 28-handle. Do the math. For a stock large enough to be in the Dow Jones Industrial Average, that is one big-tushy gain. And unsustainable. Don't forget, we are talking about a 71 billion dollar market cap now.
I'll throw in a "to be sure" qualifier saying the rising trend is not yet broken. But in the words, of Yoda, the market technician from space - "it will be."
Wednesday, February 22, 2012