Deckers Stubs A Toe:
The footwear space has been a bifurcated one to say the least recently. Today Under Armour slumped more than 12%, but did close 10% off intraday lows. CROX trades 27% off most recent 52 week highs after hitting a wall at its 200 day SMA. ADDYY and NKE continue to act well, but an intriguing divergence has taken place where a former laggard may be turning into a leader, and vica versa. The ratio chart below of SKX over DECK, shows the latter lingering. Deckers slipped more than 10% last Friday after earnings, while SKX ROSE 12% after doing the same, although it is finding it tough to finish above the 40 figure. Skechers, on an 8 week winning streak, over Deckers, with no rhyme or reason.
King Of Beers Proves Its Mettle:
The alcohol space is thought to be a defensive group, recessionary proof, not that we are in one. Some will be stronger than others and below we contrast the performance of BUD against HEINY. The former trades just 1% off most recent highs, holding the very round par number for the third consecutive session on a CLOSING basis for the first time in 11 months. Others in the group are having their own issues with TAP now 20% off most recent 52 week highs, a name long rumored to be a takeover candidate. STZ, which has ventured into the canibus arena is recovering well on a 5 week winning streak. SAM is also enjoying a nice run, however is finding it tough to CLOSE above the very round 400 number.
The recent plethora of IPOs this year has had many concerned. Of course there were worthy names to come to the markets, and others not so much. Below is an example of the latter with the chart of LEVI and how it appeared in our 7/25 Consumer Note. The stock is already in bear market mode down 23% from most recent highs, and it came public just 4 months ago. Notice round number theory came into play here with the very round number, and a potential gap fill as well. The recommended pivot came within just 5 pennies, but was never hit and sometimes discipline works in a cruel manner.