What does the market have against Ethan Allen furniture? This time of year, Ethan Allen's stock (ETH) is persona non grata in the investment world. Over the next 8 weeks, ETH has fallen an average 7.7%, with losses in 18 out of the past 21 years (86%). And I'm not talking about mostly minor declines. It is not unusual for this stock to post double-digit declines this time of year.
No major news, negative or positive, has come out about Ethan Allen recently. But the stock looks ready to break below recent support. Numerous down-close days with high volume dot the chart. Any spurts of buying quickly fizzle out.
Marking the highs and lows shows a cycling stock with swings that are widening.
It is hard to tell how this will get resolved, but it is guaranteed somebody is going to get hurt, and somebody is going to come away smiling.
Of course, there's much more you need to know and many more stocks you can capitalize upon each and every day. To find out more, please click on the following link: www.markettamer.com/seasonal
By Gregg Harris, MarketTamer Chief Technical Strategist
Copyright (C) 2014 Stock & Options Training LLC
Unless indicated otherwise, at the time of this writing, the author has no positions in any of the above-mentioned securities.
Gregg Harris is the Chief Technical Strategist at MarketTamer.com with extensive experience in the financial sector.
Gregg started out as an Engineer and brings a rigorous thinking to his financial research. Gregg's passion for finance resulted in the creation of a real-time quote system and his work has been featured nationally in publications, such as the Investment Guide magazine.
As an avid researcher, Gregg concentrates on leveraging what institutional and big money players are doing to move the market and create seasonal trend patterns. Using custom research tools, Gregg identifies stocks that are optimal for stock and options traders to exploit these trends and find the tailwinds that can propel stocks to levels that are hidden to the average trader.
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