Gaps and Groceries

Led by sizable post-earnings selloffs in TSLA and GOOGL, and even NOW TXN flipping red after last night's initial bounces, the Nasdaq Composite Index is gapping down hard today. On the first daily chart, below, what stands out the most about the Nazzy is that the pattern leading up to the gap was widely seen as yet another in a long line of bullish sideways consolidations.

Indeed, a change in character would be if today's gap sees follow-through as we move into the heart of this earnings season in the next few weeks in addition to the FOMC next Wednesday. Tonight's earnings slate is headlined by Intel. Thus, we will see if there is any magic left in the AI/mature tech/White House taking stakes in firms genre of plays. 

Regarding the consumer, both oil and rates are spiking today, no doubt squeezing 90% of consumers even further. Earlier this week we charted and discussed the grocery store stocks with Members. And on the second daily chart, below, we have Albertsons cratering after the latest earnings report. 

The instructive point about Albertsons is that the stock was already in a strong downtrend prior to this latest earnings waterfall lower. Hence, the bearish bias was not only justified but is now magnified.

Hence, other grocery stores and grocery-adjacent retail plays like COST KR SFM WMT all remain short ideas, pending their own earnings.