Generals Surrender:
As many focus on the mega cap names in technology, with good reason, it is imperative to keep an eagle eye on the leaders in their respective spaces. In the consumer space, discretionary not staples, it is a reason for caution. The generals action should be closely monitored, as they give valuable clues to the genuine health of the overall market. When they start to weaken, pay attention. Three names come to mind, in RH PZZA and HD. Each of these stocks are now underneath prior buy points, some substantially so. RH is now more than 30 handles below a 243.77 cup base pivot taken out on 2/18, and that breakout lasted just 3 sessions, another red flag. HD is mildly below its 236.63 cup with handle pivot from 2/5. PZZA, a stalwart in the casual dining space, is now 12% off most recent 52 week highs after recording a nice cup base breakout through a 67.21 trigger on 2/19. These names are trying to say something, and one would be wise to listen.