Is it a pride issue or a market issue in general?

 I meant to include this entry last week, but I did not, because I procrastinated. There is a sense of tiredness in me to stop me from typing out what's in my mind. 

I have up-dated Hang Seng and Nikkei independently while held off the up-date on Dow as Dow was still in its congestion mode.

Throughout the week, I have decided to move away from trading. I needed a long break. So my family and I went to Kuala Lumpur to visit my mum and finalize my father's funeral process.

Throughout the week, I pondered about what I wanted to do for the blog. I have decided to proceed with the update on the few hot counters featured in boycott.

Fig 1. Tatget Corp weekly chart

Target was another highlighted company for the "conservative boycott" target after Anheuser-Busch. It was flagged out for "grooming children" due to its pride promotion which seemingly targeting children inclusively. 

It was also found that the company was heavily in organization with initiation to encourage and train schools to hide children transition from parents, not only fund but one of the VPs is the treasurer of the organization.

Little was said about its sales as it was not registered on weekly basis. However, the findings certainly shake the market as the counter plunged from its congestion band leading to a continuation downward.

An interesting point to note is the steep descend prior to its congestion. This seems to indicate that Target itself is not doing well.

I look at the chart set up and at present it does not look good for the counter as the directions in general are downward and may lead to Target head of sub USD100 in the long run, with support at around USD80.  

Meanwhile, Target has reached its short term 100% projection. My feel here is that it will be in continuation as it continues to penetrate its lower Bollinger envelop.

A side note here: while there are many liberals in the country, US of A maintain as a predominantly Christan conservative majority. Knowing a company that seriously violate the core value of this group, people may really not want to support the business. I think that it is really not a boycott but people are in general disgusted with their action and not want anything to do with them.

Fig 2. Anheuser-Busch weekly chart    

In my last update on this counter The distructive power of Narcissism I noted the possibility of an initiation of reversal instead of continuation.  

The sales of Anheuser-Busch was heavily affected by the Bud Light saga leading to a 60% drop on Memorial day. Its product has lost the prominent shelves, and it was toppled from the top position.

I ended up the need to redo the technical set up as a result.

while the long run set up is still up at this moment, the short term objectives remain downward, with steeper gradient. 

The interesting part is that the bar turned green this week but with a short body. This is likely due to the moving average crossing, a phenomenon that I observed a few times. 

I anticipate a congestion or a mild retracement towards the moving averages before its continuation downward with objective between USD30-35. The important support level however, is the previous low of USD44.50.

Similar to Target, I do not see this as a boycott but an genuine rejection of the brand by its consumers, which is a more serious issue. While boycott may be a temporary issue, brand rejection is more permanent and difficult to reverse back.

With these 2 counters seriously affected by the direction that they have taken, it makes me ponder if it is possible that US market in about to reverse downward in general. afterall, Dow Jones has been seen congesting downward the past months.

Fig 3. Molson Coor Beverage weekly chart

Miller Lite is the direct competitor of Bud light and its is under the ownership of Molson Coor.

During the Bud Light saga, Miller lite was also caught with an advertisement which highlight degradation of woman by beer companies. The stock seemed momentarily affected by market concern if it would goes the same way as Bud Light and Anheuser-Busch. 

However, it seems not really the case as sales was only mildly affected. The counter also saw a strong support from its 8-week moving average, propelling it to new height and presently testing the previous high of 66.67.

The few measurements I have are pointing upward with objective of around USD75.

Other than Molson Coor, I am also seeing similar uptrend with Walmart whose departmental store are also promoting pride month but not as prominent as target. 

As such what is the direction of US market in general? 

Fig 4. Dow Jones weekly chart

I hesitated with talking about Dow the last few weeks because it was in congestion, and I was waiting for its break out. It did last week and managed to remain above the moving averages. 

It is still not out of the wood yet. I has not broken through its previous high of 34,941 and its bollinger envelop remain relatively flat. 

I sense it may meet resistance when reaching the Bollinger envelop.

However, with higher lows consistently, the upward potential high for the time being.

The resistance I see will be the Bollinger envelop of 34,651. Projection resistance of between 34,382 to 35,545 while another set of projection resistance at between 35,254 to 37,731.