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Thursday, January 8, 2009

Wal-Mart Cuts Forecast, Market Cuts Stocks

Look out below when even this monster discounter can’t meet or beat expectations…

Pre-market Wal-Mart (WMT) has gapped below the rising trendline from the October 2008 low, the 20, 50 and 200 day EMAs (blue, red and green lines). Prices have broken DOWN and OUT of an Ascending Triangle.

This will HURT the broader equity indices because WMT was one of the few places left for the “long only” crowd to hide.

The road is now open for a test of the October lows around $46 area…

Wal-Mart Cuts Fourth-Quarter Forecast; January May Be Unchanged: “Wal-Mart Stores Inc. cut its fourth-quarter forecast and said January same-store sales may be little changed.”