18Mar3:43 pmEST

The Party's Over, Nerds

Headed into the FOMC tomorrow we have stocks pulling back. Overall, we are flopping around as we expected with Members early this week. The true test will be how the market interprets The Fed's tone and tenor tomorrow regarding future policy moves, meaning how dovish they appear.

In the meantime, shares of Reddit (weekly chart, first below) are off by more than 50% in the last five weeks or so, a move reminiscent of the dot-com bubble implosion in March 2000.  RDDT is the quintessential bubble name. It is still trading with forward PE of 48, as we speak.

And Chipotle, a critical consumer name regarding discretionary funds and also for the pulse of working folks on their lunch break, is flashing signs of a major multi-year top on the second monthly chart, below. We have been bearish on the name consistently with Members. a few of whom have played it aggressively short on their own. My view is that the downside is only just beginning to materialize. 

One Sniff Will Last You the ...

 
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