Is it true that “So Goes Harley-Davidson (HOG) So Goes the S&P 500?”  In my opinion, that is a stretch.  Could HOG tell us something about consumption or lack of, by a certain class of baby boomers? Possible!

HOG remained above a key support line for 10-years. Once support broke at (1) above, HOG lost over 75% of its value and the S&P 500 shrank as well. The chart above reflects a support line that is at the same angle as prior 10-year support that could be giving way.

I don’t feel we should make major allocation adjustments based on the action of one stock. I am of the opinion its worth keeping track of stocks like HOG for a potential sense of consumption and how certain consumers are acting/feeling.

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past