Tony Soprano's on His Way out, and I Mean as in Forever

Waste Management, Inc., in addition to the traditional utilities, REITS, classic staples, has also been a bastion for yield-seekers/chasers in a global low interest rate environment for years. The "waste management" or garbage disposal business seems inherently safe on a variety of levels. And the yield was extremely attractive to the fixed income market. 

As you can see on the monthly chart, however, as one of our Members noted this morning we could easily be seeing the early stages of that safety trade unwinding. 

The yellow arrows point to the monthly candlestick for July (remember, on a monthly chart each candle represents one entire month of trading). Note the spike higher then reversal to red by the time July ended. 

After a prior steep uptrend, this type of reversal can be a potentially very bearish one, provided there is some downside confirmation. Thus far in August, buyers have not yet answered the bell. 

With earnings out of the way this summer, WM may be a sitting duck to come back down at least into the $50s. Indeed, it has been a great run for WM the waste management industry but it may be time for a changing of the guard in terms of capital.

The key issue, still, is whether that capital flows into growth stocks or heads to gold or the sidelines.