On a recent post – September 3 - I presented content sent to BNN Market Call last August 6, 2015 -
“They Don’t Usually Ring a Warning Bell: Recent investors in the crowded spaces of the health care and consumer sectors tend to be weak holders and can stampede out of a sector when alarmed by any injury to one of the sector leaders. The current and alarming drop of Apple Inc. below its 200 day moving average has the financial media buzzing and for good reason. Apple is basically a consumer related company and has only violated the 200 day only three times since mid 2003.”
Today our chart is a daily bar of the Concordia Health (CXR) displaying the recent downward break of the 50 and 200 day (10&40-week) moving averages. A good example of investors fleeing from an over-crowded space. Shocking – the over-loved Concordia has lost one half of is market cap in four weeks – in turn trashing the health care sector. Look for the Volkswagen fiasco to replicate the Concordia torpedo and trash the auto stocks..