Nordstrom JWN - A Latent Scalp
Updated
I hear that the economy is pretty bad right now. So bad that we're in a recession, although the Government doesn't like the word "recession."
The real word to describe the situation humanity is facing that nobody is saying yet, however, is "Depression."
Here in North America, we aren't quite there yet, but no amount of money printing and astroturfing is capable of keeping the true state of the environment, the food supply, the water sources, and our energy reserves hidden for all that much longer.
So, they say that for a company like Nordstrom, it's surely "a strong sell." After all, the whole sector is going down the drain because even the middle-upper class is spending less, and that surely is true.
Yet, one doesn't have to back up the dump truck to buy and hold something for 6 years, either.
Nordstrom's post-dump price action has some unique characteristics. Mainly, that for the better part of two weeks, it's been completely bearish.
It also has not retested the $20 psychological level to find buyers, or rebalanced the dump's gap. That all on its own is peculiar in a market that just loves to flirt with gaps after making them, at least a little bit.
With price trading as low as $16.84 on Friday, a run to $21 yields a 22% trade. Ideally, if price action is to do the pseudo fakeout dump I am expecting when markets open on Tuesday:
SPX / ES - Bull Whips and Bear Saws
One can get in cheaper than $16.84, and then the risk/reward is all the sweeter.
I believe it's without a doubt that an exceptional shakeout is coming in the markets, a fundamental correction that will crack the pre-COVID highs and have everyone questioning what's going to happen with their happiness and their investments.
So JWN Nordstrom is not something you would want to hold. You want to drop it like a hot potato. But its current setup does provide what may be an imminent opportunity.
The real word to describe the situation humanity is facing that nobody is saying yet, however, is "Depression."
Here in North America, we aren't quite there yet, but no amount of money printing and astroturfing is capable of keeping the true state of the environment, the food supply, the water sources, and our energy reserves hidden for all that much longer.
So, they say that for a company like Nordstrom, it's surely "a strong sell." After all, the whole sector is going down the drain because even the middle-upper class is spending less, and that surely is true.
Yet, one doesn't have to back up the dump truck to buy and hold something for 6 years, either.
Nordstrom's post-dump price action has some unique characteristics. Mainly, that for the better part of two weeks, it's been completely bearish.
It also has not retested the $20 psychological level to find buyers, or rebalanced the dump's gap. That all on its own is peculiar in a market that just loves to flirt with gaps after making them, at least a little bit.
With price trading as low as $16.84 on Friday, a run to $21 yields a 22% trade. Ideally, if price action is to do the pseudo fakeout dump I am expecting when markets open on Tuesday:
SPX / ES - Bull Whips and Bear Saws
One can get in cheaper than $16.84, and then the risk/reward is all the sweeter.
I believe it's without a doubt that an exceptional shakeout is coming in the markets, a fundamental correction that will crack the pre-COVID highs and have everyone questioning what's going to happen with their happiness and their investments.
So JWN Nordstrom is not something you would want to hold. You want to drop it like a hot potato. But its current setup does provide what may be an imminent opportunity.
Note
This one turned out very well. I admit that unfortunately I missed the move to the upside.But one can solve that problem with buying puts once it touches the gap, with a target towards the low or the middle of the whole range.
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