Two Losers No More
We have a grinding bounce in the broad market still playing out early this afternoon, with bears likely looking for a Netflix earnings dump tonight to ignite a rollover now.
Still, it is hard not to consider the potential for another stunning V-shaped bounce back to fresh highs as a possibility, given this market's legendary resilience for years on end. If that should materialize, two former big-time losers are suddenly sitting with the cool kids at the lunch table.
On the monthly chart for Best Buy, first below, the breakout we noted several months ago over $40 is holding impressively. Indeed, the Amazon-destorys-Best-Buy theme may be a bit played out.
And CMG on the weekly chart, second below, continues to outperform now seemingly on a daily basis, which likely is a case of sellers simply being exhausted from quarters of end of dumping the name. Simply put, everyone who wanted to sell BBY and CMG since 2015 likely already have, and these two are suddenly relative strength names.
More in my usual Midday Video for Members.