Post the housing bubble, the economy has been inflated due to FED manipulation.
Job growth and wage growth cannot be growing at the level the government reports simply due to the lack of discretionary spending by the mass population. If we truly were getting back on track with the number of people employeed and were also on track with wage growth then a stock like JCP should be growing...not shrinking.
Also...very surprisingly, a sudden loss in profits from JCP preceded the market burst on BOTH occasions.
Granted we cannot use the same logic to a market where JCP stock doesn't rise (to compare to S&P pending fall), we should still keep this in consideration for the next time retail sales SUDDENLY slow.
Maybe the more important indicator is that JCP has hit all time lows in Feb 2014?
During a year where all other stocks soared in recovery, JCP did almost nothing.
This COULD be a similar sign as before, only presented slightly differently.
This looks more like an isolated event when compared to other retail stores (Macys).
I think JCP is simply in financial trouble and the directors haven't figured out a way to become profitable again.
This was a miss on my part, should have been looking at the fundamentals as well.
Check their quarterly reports to note this problem.