Sotheby’s Holding (BID) has so often been a market bellwether.
And at tops at that! A rare thing in the world of calling market direction. Bottoms are easier to see and sometimes obvious but tops…”calling” tops has killed many a market prognosticator and killed many a bear.
So let me say right off I’m not calling a top here. Just trying to pay attention…
And when BID quits rallying and/or diverges with general market, it is time to pay attention. BID was down a bit on its monthly chart in September. That is a lower high for the stock while the S&P 500 and Nasdaq drifted higher.
What’s it mean? Maybe nothing. Yet. But take a look at the chart action showing BID with the SPX on the chart below in 2000 and 2007. One might say, as BID goes so goes everything else.
And this time, so far, BID has not even crawled up to the top of its long-term price range, which is rather ominous going forward.
(click on the chart for a larger view)