I readily acknowledge that I know precious little about the world of art. In fact, I would struggle to distinguish Picasso from Velazquez, Van Gogh from Monet, or DaVinci from Rembrandt.
On the other hand, my brain has retained a bit of knowledge about several artists for one reason or another. Not only did I see the 2002 movie on the life of Frida Kahlo, but I attended a Kahlo exhibit in New York. Similarly, whenever I gaze upon a canvas covered in multi-colored blood spatter, I think of Jackson Pollock. That might not be entirely fair to abstract expressionists, yet Pollock’s work makes me feel as though I too could create a masterpiece.
Last week, however, I came to discover the oddity of Francisco De Goya. Why? I toured the Museo del Prado while vacationing in Spain. At the museum, you cannot go anywhere without seeing a Goya creation. And you certainly can’t miss one of his most famous works, Saturn Devouring His Son. Admittedly, as gruesome and as disturbing as the “Black Painting” is, I felt obligated to snap a picture of it. (See below.)
Why am I bringing up Goya or the mythological Saturn eating his children? Good question! It is because the wealthiest among us buy and sell art via auction houses. And the most popular auction house around the globe is Sotheby’s (BID) – a public corporation that offers its shares on the New York Stock Exchange.
There’s more. Sharp price declines in Sothebys Holdings Inc (BID) foreshadowed the 2000 tech wreck and the 2008 financial crisis. The question is, might a similar pattern be emerging here in 2017?
Certainly, Sotheby’s (BID) has declined a bearish 22% from a record perch. Its 50-day trendline has crossed below its 200-day trendline – an occasion known as a “death cross.” And the current price of BID is also below its key moving averages. Few technicians would look favorably upon these developments for the company itself.
