Blind Spot:
The auto group is never far from the news in the consumer discretionary space. Lately, the news has been anything but sanguine. F was the victim of a vicious 3-week losing streak that fell by a combined 30%, before this week gaining 9% ended that deluge. Peer GM has been cut in half, like F, from its most recent 52-week highs. In the EV space, LCID looks like it wants to return to its $10 SPAC price. RIVN is still making higher lows since May and driving through the round 40 number the last couple of months, pun intended, was not in the navigation system. Below on the ratio chart compared to TSLA we show how it was outperforming before the TWTR fiasco. Also below is the chart of HOG which acted “well” on an absolute basis, of course relatively speaking it still fell less than 1%, but if Monday is soft like it should be a good risk/reward situation can make itself known with a gap fill near 34 from the 7/27 session. Use a stop of 32 if you make the play.