Yesterday we saw a major sell-off in Target and Walmart due to the increasing inflation pressure. The argument was that due to the inflation pressure they would both see less sales. We can follow this argument if the Market did the same to say Apple and Tesla, but the sell-offs here was much less pronounced. Those two products are not really essentials as products from Walmart and maybe you want your home to be safe before buying yourself an EV?
We are not saying that the Market is irrational, but rather the Market sometimes get griped by fear, which is the worst that can happen as major moves up or down becomes accelerated once fear takes over.
For Target it has already reached the 38.2% corrective target, but we think more downside pressure is needed before the correction is complete and expect a decline to at least the 50% corrective target at 134.56 and possibly even closer to the 61.8% corrective target at 102.82.
