Honey - I got you those puts instead of new handbags
On June 22, the day after LVMH put in that huge candle, we suggested EU luxury makers were getting ahead of themselves. In our note, "Honey - I got you a handbag...full of puts", we wrote;
"Unique brands, outstanding business models with pricing power, growth and free cash flow generation. The sector has continued to be on fire, but can this sector be this awesome, benefiting from everything?
LVMH put in a huge shooting star candle the other day. This one is to be observed closely as the psychology shifted with that candle. There are sellers up there is the message basically...Are you starting to get NASDAQ 2020 feelings when looking at the European luxury sector?"Since then the entire sector has corrected, and LVMH is down to trend channel lows, approaching the 50 day moving average.For now this is nothing more than a much needed "pause", so watch the 50 day moving closely...If you are going to use the put profits to buy more handbags we leave to you to decide...
"Unique brands, outstanding business models with pricing power, growth and free cash flow generation. The sector has continued to be on fire, but can this sector be this awesome, benefiting from everything?
LVMH put in a huge shooting star candle the other day. This one is to be observed closely as the psychology shifted with that candle. There are sellers up there is the message basically...Are you starting to get NASDAQ 2020 feelings when looking at the European luxury sector?"Since then the entire sector has corrected, and LVMH is down to trend channel lows, approaching the 50 day moving average.For now this is nothing more than a much needed "pause", so watch the 50 day moving closely...If you are going to use the put profits to buy more handbags we leave to you to decide...
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