TGT, BBY Earnings: Retail Brick & Mortar Topping Patterns

Target and Best Buy reported earnings today and their stock values fell, TGT worse than BBY. The retail brick and mortar stores are the last group to report each season. The ubiquitous AMZN has put most of this type of store at risk of total displacement as consumers prefer the ease and speed of online shopping over driving to a store.

Technical patterns are even more important in a downtrend as the 3 primary market participant groups that sell short are technically oriented rather than fundamentalist or emotional buyers or sellers. Study both weekly and daily charts before you choose stocks to sell short, in order to calculate potential support bounce levels, and to anticipate how far a stock can drop.

This is one of the newer topping formations that developed in the past few years as the market became fully automated for the Institutions.