And Kroger, Wal-Mart, Sprouts, and Target are plunging... (WMT -4%, TGT -5.5%, SFM -7.6%, KR -12%)
And European supermarkets are getting hammered -
*AHOLD, CARREFOUR, TESCO FALL TO LOWS ON AMAZON/WHOLE FOODS DEAL
*AHOLD DELHAIZE SLUMPS 6.8% IN AMSTERDAM ON AMAZON NEWS
With good reason probably. Grocery margin are 1-2% at best, and if Amazon can truly create smart stores with no check outs and cut employees in half they can kill regular supermarkets...
1. NPR interview with the Professor who is doing Uber's self driving cars this spring he said it is a lot harder than you think. Alphabet just pulled the plug on their car. It is right there with the flying drone deliveries so no automatic service, they will continue to need drivers, therefore no super cheap home delivery. PS my daughter in LA tried Amazon home grocery delivery and cancelled after two weeks. She is their perfect demographic, a working mother with decent income in a major urban area. So nothing is ready for prime time.
2. What is working is send us your list and we will fill the cart for you. Fred Meyer (Kroger) and Walmart are doing well at this game, read Wal-Mart is redoing stores to move inventory on to shelves to accommodate the pickers. I saw a dozen loaded carts in the middle of the day at Freddy's in the Ballard neighborhood last time I was in Seattle.
3. Package goods prices will move them to the lowest cost channel. Not seeing anything with Whole Paycheck on it as competitive. Don't know how they could compete with Costco on paper towels.
4. Amazon stock price is based on their cloud computing services, not their very low margin retailing. This is a distraction, not a life changing event.
And Pharmacies and Drug Distributors are also tumbling...CVS -4.7%, WBA -4.5%, ABC -1.9%, DPLO, CAH, MCK all down 1.7%, ESRX -1.4%
“The deal put everyone’s business models at risk,” Bloomberg Intelligence analyst Jonathon Palmer says in email, “large drugstores are trading down in sympathy but the declines are less steep than those seen in supermarkets,” as pharmacy is seen as more complicated with more regulation; would be more difficult to enter.
Amazon’s foray into the retail sector doesn’t change much for PBM pure-play Express Scripts but he sees “higher risk” for distributors from their end customers.
EDITORIAL: no facts or data
Srsly
Raise your hand if u have “fun”
going into any grocery that is as large as a football field (they all are in my area)
wasting time, using just one example, in an aisle that stocks 867 different types of chips.
It’s just dreadful IMO
There’s got to be a better way to get food, maybe this is it
Disclaimer: I am not an investment advisor. This is just my opinion NOT investment advice.
QQQ break below pink line (double bottom) would trigger mid-term Chandelier exit signal (not yet)
Would be the first break since the election
Heikin, daily
Disclaimer: I am not an investment advisor. This is just my opinion NOT investment advice.
There has not been much to say or do.
The SPX has been going nowhere, and the NYMO has been flattich and coiling around the zero line.
That said, I have tentatively marked a NYMO high at June 2.
We have a lower high, and if we close around here, we'll have a lower low.
Thus a NYMO down cycle may be underway.
Price has done a whole lot of not much.
Perhaps we are consolidating before the next move up. Don't know.
We have had two tags of the upper keltner band (bullish), but things have stalled.
Bulls want to see regular bumps pushing that band up.
So far, we are painting an inside day today.
A plethora of gap targets remain below. There is a little one above.
I remain a little long from I can't remember when.
If the NYMO cycle confirms down today, I'll jam my stop and look for setups to reverse.
Price will have to cooperate though to really engage.
I am interested to see how things unfold around next Tuesday.
That is VIX contract expiration as well as a major Bradley Turn Date combined.
Sometimes those things are meaningless, and sometimes they mark a turn.
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the rebound tells me it's a range day at the best for bears. no bear show today, sorry.
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The VIX-futures traders (XIV) are VERY BULL SPY today… atm…
More bull spy than spy is
They will very soon reach a “quad” top
(“knock four times” formation, also ascending triangle)
TA says they should bust right through it
Disclaimer: I am not an investment advisor. This is just my opinion NOT investment advice.
Al_Dente wrote:The VIX-futures traders (XIV) are VERY BULL SPY today… atm…
More bull spy than spy is
They will very soon reach a “quad” top
(“knock four times” formation, also ascending triangle)
TA says they should bust right through it