Major sell signals remain intact on Walmart, Meta
The longer the timeframe the more powerful the signal.
Today I added to my WMT 0.00%↑ and META 0.00%↑ Puts as the broader market triggered a sell signal (and VIX rocketed 15%).
My decision is based on the long-term, quarterly candlestick charts. Remember, the longer the timeframe, the more powerful the signal.
For the more conservative trader, this is now the entry point: wait for a rise in price, then sell the rip.
The Q1 sell signal (red arrow) happened at the Upper Bollinger. It has yet to be invalidated.
Not only does Q1 reversal action signal that bears wrestled control away from the bulls, but it’s happening at a “price extreme”…
The thing I love about this trade is we have two dramatically different businesses, triggering the same sell signal. This is a very strong clue that we may be headed for a broader market sell off. It’d be one thing if one looked bullish while the other looked bearish.
But these charts are ugly…
For the bulls.