Amazon (AMZN) stepped up and bought shares of Whole Foods (WFM) for $13.7 B. While Whole Foods shareholders saw some relief from the prolonged pain of holding the stock, the rest of the industry group plummeted on the news. The weekly chart of WFM shows the shareholder pain for the last five years.
The Industry group dropped broadly on the news. Amazon's delivery prowess just doubled down the biggest risk to market share by adding physical locations in primary markets.
Amazon moved $30 higher on the news as well.
Retail continues to be a hot mess with the Seattle-based Amazon sending new seismic shock waves across the continent. Canadian grocers also plummeted on the news.
Good trading,
Greg Schnell, CMT, MFTA
About the author:
Greg Schnell, CMT, MFTA is Chief Technical Analyst at Osprey Strategic specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA).
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