First, it was copper. Now, it's Home Depot…
Longtime DailyWealth readers know we monitor a handful of "real world" indicators to get a read on the global economy. In addition to key assets like copper and transportation stocks, shares of Home Depot (HD) are high on our list. As America's largest vendor of things to spruce up the basement, bathroom, kitchen, roof, and garden, HD's profits and share price rise and fall with the ability of the country to spend money on the American dream.
In Saturday's chart of the week, we noted the dangerous breakdown in the price of copper. Today, we must also note the dangerous breakdown in HD. As you can see from today's chart, the uptrend in Depot shares has been shattered… Just yesterday, the stock hit its lowest low in over two months. This is what's called a downside breakout.
Last month, we noted HD was still trending higher… which was a sign that the E-Z-Credit stock bull market was still intact. But in this volatile market, our indicators can turn on a dime. HD has done just that. The uptrend of copper and HD, and thus U.S. and global growth, has been smashed. The downtrend is beginning.
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