{"id":103859,"date":"2017-03-24T10:04:35","date_gmt":"2017-03-24T14:04:35","guid":{"rendered":"http:\/\/countingpips.com\/?p=103859"},"modified":"2017-03-24T06:06:16","modified_gmt":"2017-03-24T10:06:16","slug":"friday-charts-amazons-retail-apocalypse-black-swans-and-sp-500s-broken-win-streak","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/03\/friday-charts-amazons-retail-apocalypse-black-swans-and-sp-500s-broken-win-streak\/","title":{"rendered":"Friday Charts: Amazon\u2019s Retail Apocalypse, Black Swans and S&P 500\u2019s Broken Win Streak"},"content":{"rendered":"
March 24, 2017<\/div>
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By WallStreetDaily.com<\/u><\/a> \"\"<\/p>\n

\"LouisDear Wall Street Daily<\/em> Reader,<\/p>\n

When Friday rolls around, we roll out the charts in the Wall Street Daily <\/i>Nation.<\/p>\n

After all, a picture is supposed to be worth a thousand words. So we figure, why not embrace it?<\/p>\n

This week, we\u2019re serving up some timely snapshots of the end of the (retail) world as we know it, S&P 500 volatility and the obscene cost to insure against the next market implosion.<\/p>\n

There are a few nuggets in here for contrarians in the group, too. So take a look and be sure to let us know what you think!<\/p>

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Amazon Effect, Revisited<\/b><\/h2>\n

Amazon.com Inc. (AMZN) is in the news again this week for scooping up an international purveyor of a smorgasbord of goods \u2014 Souq.com. The Dubai-based retailer claims that it\u2019s the largest e-commerce site in the Arab world.<\/p>\n

Clearly, Amazon\u2019s Jeff Bezos will stop at nothing less than global domination.<\/p>\n

You\u2019ll recall that in February<\/a>, I noted how quickly Amazon was gobbling up U.S. market share. It\u2019s a zero-sum game, too.<\/p>\n

When Amazon gains, others lose. Here\u2019s the latest proof:<\/p>\n

\"Retail<\/p>\n

As Amazon continues to increase sales and expand operations, traditional retailers are shuttering stores. In fact, 3,507 stores are destined to close shop in the coming months, based on SEC filings.<\/p>\n

News flash: If you\u2019re looking for companies to sell short as they teeter on the brink of obsolescence, you couldn\u2019t ask for a better list. We pegged RadioShack<\/a> a long time ago. Others are destined to follow.<\/p>\n

By extension, the country\u2019s largest shopping mall REITs \u2014 like GGP Inc. (GGP) \u2014 make for compelling short candidates, too.<\/p>\n

Streak Over\u2026 Now What?<\/b><\/h2>\n

Last week<\/a>, I noted that it had been over 100 trading sessions since the S&P 500 index dropped 1% in a single day.<\/p>\n

But I also mentioned that \u201cit\u2019s only a matter of time before volatility returns.\u201d<\/p>\n

Well, it did. On Tuesday, the S&P 500 fell 1.24%, ending the 109-day streak.<\/p>\n

Now what?<\/p>\n

Well, the number crunchers over at Credit Suisse are sounding the alarm bells, telling investors to prepare for a 10% correction in the near future.<\/p>\n

The only problem? The numbers don\u2019t add up.<\/p>\n

As LPL Financial reveals, following the 12 other streaks without a 1% decline for the S&P 500, the index rallied the majority of the time. No matter what time period you consider.<\/p>\n

\"AfterStreak\"<\/p>\n

Incidentally, a similar analysis by Bespoke Investment Group confirms the same tendency for stocks to head higher.<\/p>\n

Now, for those of you who prefer to hedge your bets \u2014 and protect against a sudden downturn \u2014 it\u2019ll cost you!<\/p>\n

The CBOE SKEW Index<\/a>, which essentially measures the cost to purchase out-of-the-money put options (bearish) on the S&P 500 \u2014 versus the cost to purchase out-of-the-money call options (bullish) \u2014 is soaring.<\/p>\n

\"Insurance\"<\/p>\n

This index has often been referred to as the \u201cblack swan index.\u201d<\/p>\n

Sure enough, the last two spikes in the index were followed by declines. However, lightning-quick rebounds came almost immediately afterward.<\/p>\n

Translation: Unless you\u2019re really<\/i> nimble, don\u2019t attempt to time the market. It could cost you coming and going.<\/p>\n

Instead, I\u2019d recommend a more straightforward and simple risk-reduction technique: Use trailing stops to protect your profits and capital against any unexpected market volatility.<\/p>\n

That\u2019s it for today. Before you sign off, though, do us a favor. Let us know what you think about this weekly column \u2014 or any of our recent work at Wall Street Daily<\/i> \u2014 by sending an email to feedback@wallstreetdaily.com<\/a>.<\/p>\n

Thanks and enjoy the weekend!<\/p>\n

Ahead of the tape,<\/p>\n

Louis Basenese
\nChief Investment Strategist, Wall Street Daily <\/em><\/p>\n

The post Friday Charts: Amazon\u2019s Retail Apocalypse, Black Swans and S&P 500\u2019s Broken Win Streak<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com Dear Wall Street Daily Reader, When Friday rolls around, we roll out the charts in the Wall Street Daily Nation. After all, a picture is supposed to be worth a thousand words. So we figure, why not embrace it? This week, we\u2019re serving up some timely snapshots of the end of the (retail) […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-103859","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/103859","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=103859"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/103859\/revisions"}],"predecessor-version":[{"id":103862,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/103859\/revisions\/103862"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=103859"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=103859"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=103859"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}