Playing Without a Mouthguard

The sizable post-earnings gap down in Under Armour this morning decisively breaks the descending triangle pattern the stock had been forming for quite some time.

We tracked the relative weakness in UA over the last few quarters, which piggybacked the general weakness in other consumer titans like DIS NKE SBUX, among others. Indeed, buyers in UA who assumed that the stock was done going down, perhaps due to the stars of the brand like Steph Curry, were not playing with the mouthguard or defensive posture that Curry himself often brandishes. 

If nothing else, this type of price action draws a sharp contrast in the current market between winning leaders like AMZN FB GOOGL NFLX, and leaders fallen by the wayside like those mentioned above. 

For all intents and purposes, UA is now a busted chart and could easily have a date to the low-$20s, a prior significant price area from 2014. 

Regarding equities as a whole, it is another grinding morning. But I am looking to see if some materials and steels like FCX X can hold their opening strength and defy deflationistas betting on a new leg down for them--Seeing FCX rally on bad earnings is a good start.