With Q3 earnings season approaching investors must take in mind what the Federal Reserve has signaled with their forecast. Jerome Powell mentioned companies with high debt will feel the most pain as he continues to stay aggressive on rates until we bring inflation down. $LOW (Lowes) is a company that supplies good for home builds and is currently sitting on large inventory and large debt. With the mortgage rates hitting an average of 7.4% in California alone, the housing market is on the edge of a cliff.
$LOW is at an important level in which it was rejected many times before; odds of a strong rejection and a "run-down" into earnings is highly possible. Targets for the downside are 185, 180, and 165.
OptionsSwing Analyst
Daniel Betancourt
$LOW is at an important level in which it was rejected many times before; odds of a strong rejection and a "run-down" into earnings is highly possible. Targets for the downside are 185, 180, and 165.
OptionsSwing Analyst
Daniel Betancourt