Just a quick check on the 22 concentrated holdings… they’re ugly! Putting all price charts up with their 50 and 200-day moving averages, we see…
Truly Bearish looking stocks are: AAPL, ABC, AMGN, BLK, CMCSA, CNI, CVS, DG, ECL, FDS, GILD, IBM, NKE just flipped to a bearish appearance, ROL, TSCO, UNP and VFC.
Those that are positively Bullish are: CHD, HRL and ROST.
And, those that are right down the middle, neither Bullish nor Bearish are: COST and TJX.
A look at an index, like the 500, and it’s not good. It’s appearance is decidedly bearish. Sure, a rally may have just kicked off today, but it’s not likely to even get back to its own 200-day moving average, which is 9.1% higher. That would be one heck of a rally if it would get back there… but, then, it could take a few weeks, and the 200-day has rolled over and headed down. So, it need not rally 9.1%, and having some weeks to attempt it, it may only need to rise some 6 or 7% by the time they might meet.
I expect there will be a lot of distribution into this rally. I have an issue or two I will want to either lighten up on, or eliminate. More about that later.
Here’s to your successful investing!
Harold F Crowell