[JWN] update. The Captain sez "abandon ship".

In the backlink I provided the model below with the commentary that JWN looks ready for a sharp selloff.  I was about $2.50 too early on that call.




JWN got to $80 before putting in a DDT (Declining Double Top).  Some people are freaking out because of the recent stock market action.  Let me go out on a limb and suggest that there is much more to come.

To put things into perspective using the current snapshot below, Nordstrom's went from $6 and change at the bottom of 2009 up to $83 at the peak of the Ponzi.  Did anyone complain that this was not normal?  Of course not, they took the approximate fifteen bagger to the bank as if they deserved it.

Watch how they squeal as they give it all back now.

This sell off isn't over folks.  It hasn't even gotten started.   As I have been writing in these pages for some time now, we ain't seen bad yet.  But it's coming.  All of these stocks were bought with record amounts of margin.  As that debt unwinds the stock markets and the bond markets and the housing market are all going to deflate and there really isn't anything that anyone can do about it.  History shows over and over again that governments come to the scene of the crash and vow to do this and that with a bazooka in their pocket blah blah blah. 

But the market and in this case I mean the fractionally reserved debt market that underpins most of the economic activity on this Debt Ponzi Planet are far far bigger (as in overweight) than anyone else.  The debt fueled markets are the 10k lb elephant sitting in the living room and everyone acts like it's just fine.  Well, it's fine until the herd suddenly wakes up and realizes that it's not fine and in fact it's an existential threat to the global economy.