General Dynamics (GD) spent over three and a half years from mid-2018 to January 2022 stuck in the red unfavored zone of the SIA S&P 100 Index Report. In the last few weeks, GD has rocketed up the rankings on renewed interest in defense contractors, recently returning to the Green Favored Zone for the first time since June of 2018. Yesterday GD finished in 14th place, up 8 spots on the day and up 22 positions in the last month.
Defense contractor Raytheon Technologies (RTX) appears to finally be getting its day in the sun. After spending nearly all of the last decade stuck in the red zone of the SIA S&P 500 Index Report, Raytheon has rocketed up the rankings lately and recently returned to the Green Favored Zone for the first time since 2010. Yesterday, the shares finished in 10th place, up 6 spots on the day and up 24 positions in the last month.
For the last six months, Nucor (NUE) shares have been trending sideways between $88.00 and $128.00, consolidating gains made in a previous advance up from near $45.00. Last month, Nucor successfully retested the bottom of this zone and since then, it has been on the rebound. Last week, the shares successfully tested support at their 50-day moving average near $111.75 as support then rallied up off of it to a new all-time high, blasting through the top of its previous range on Friday on increased volume, a sign of renewed interest.
Since we last mentioned concert promoter Live Nation (LYV) as a potential reopening play in the October 4th edition of the Daily Stock Report, the shares have gained 26.0%. Boosted by a positive quarterly sales report and strong advance ticket sales, Live Nation jumped 23 positions to 19th place within the Green Favored Zone of the SIA S&P 500 Index Report.
Stock markets around the world have continued to retreat with major US indices falling back to levels not seen since last summer. Increasing tensions and the spiral into the open war between Russia and Ukraine which started overnight have been center stage, pushing pretty much everything else into the background. In this issue of Equity Leaders Weekly, we look at the recent breakdown by US indices as the current downswing deepens, and at the eternal tug-of-war battle between Growth and Value.
A big upswing is underway in Wesdome Gold Mines (WDO.TO) with the shares breaking through resistance in the $13.00-$13.50 area (which has reversed polarity and become initial support) to blast through the top of a sideways trading range that had formed above $10.00 over the last nine months, and to complete a bullish Ascending Triangle pattern.
With capital returning to defensive havens, even generally unloved sectors like tobacco have attracted renewed interest lately. Phillip Morris spent most of the last 5 years stuck in the red zone of the SIA S&P 100 Index Report. It started to climb back up the rankings last year and in the last few days it has returned to the Green Favored Zone for the first time since September of 2017. Yesterday, PM rose one position to 14th place and it is up 19 spots in the last month.
Since joining the SIA S&P/TSX Composite Index Report in December, Topaz Energy (TPZ.TO) has been steadily working its way up the rankings in the Green Favored Zone. On Friday, it climbed another two positions to 42nd place.
A major upturn is underway in Newell Rubbermaid (NWL) shares. Last May, a long-term uptrend topped out and the shares fell under distribution which continued until October. The shares then spend the last four months building a base for recovery in the $20.00 to $24.50 range. In the last month, NWL has come under renewed accumulation with the shares climbing on higher volumes. The shares have broken out their base, cleared the $25.00 round number hurdle, and continue to advance.
Following its big rally up off of the 2020 market bottom, Booking Holdings (BKNG) spent most of 2021 stuck in a sideways trading range between $2,000 and $2,500 consolidating its gains. A November breakout turned to be false, but underlying support held through the ensuing correction, which occurred on falling volumes. Since December, accumulation has resumed with the shares climbing on increasing volumes. Yesterday, Booking broke out to a new all-time high above $2,700, signaling that the recent pause has ended and a new uptrend has commenced.
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