Recent trading in Meta Platforms (FB) highlights how SIA Charts rankings not only help advisors to identify opportunities with high relative strength, it also helps advisors to screen out stocks with weakening relative strength or at risk of significant underperformance. In the case of Meta, advisors had two relative strength warnings signals last fall, one when FB fell out of the green zone in the SIA S&P 500 Index Report, and one when FB entered the Red Unfavored Zone.
On the surface, it has been a better week for equity markets, particularly in the US and Europe, which finished January and started February off with strong rebound rallies. It remains unclear at this point, whether this upswing is the start of a significant turnaround for stocks or if it is a relief rally within an emerging downtrend. In this issue of Equity Leaders Weekly, we look at the implications across asset classes of a rising US Dollar, and at recent activity in energy markets.
Boosted by a stronger than expected earnings report and news of a 20-for-1 stock split coming, Alphabet (GOOG) shares soared 7.5% yesterday. However, when looking at a point and figure chart even though the recent bounce up off of $2,500 has been encouraging it has done nothing to change the sideways trend which has emerged since a high pole stalled out in September and a November breakout failed in a bull trap reversal. Currently the shares are still on a bearish Double Bottom pattern on a 2% chart although they are on a bullish Low Pole Warning on a 1% chart.
After regaining the $200.00 round number level on Monday, UPS shares blasted off yesterday, staging a major breakaway gap up through resistance to a new al-time high on a big spike in volume, all combining to signal a surge in new interest and the start of a new advance.
Energy royalty company Prairiesky (PSK.TO) has returned to the Green Favored Zone of the SIA S&P/TSX Composite Index Report for the first time since November, continuing a climb up the rankings which started down in the red zone a month ago. Yesterday, the shares finished in 51st place, up 7 spots on the day and up 90 positions in the last month.
Celestica (CLS.TO) shares spent the better part of three years stuck in a sideways trading range between $8.00 and $12.00. Accumulation resumed in July after the shares bounced up off support at a higher low near $9.00. Since then, they have been trending upward and in November, they broke out to the upside, signaling the start of a new uptrend. Last week, the shares completed a Bullish Engulfing candle and popped to their highest level since the summer of 2018 on a jump in volume, indicating increasing investor interest.
Methanex (MX.TO) has been steadily climbing back up the rankings in the SIA S&P/TSX Composite Index Report this month, rising back up out of the red zone and returning to the Green Favored Zone for the first time since October. Yesterday, the shares finished in 57th place, up 20 spots on the day and up 96 positions in the last month.
It has been a tumultuous week for equity markets with several large intraday swings indicating a volatile environment. The prospect of interest rate increases in both the US and Canada, with both the Fed and the Bank of Canada hinting that they could start raising rates at their next meetings in March, sent investors fleeing from risk markets into defensive havens. In this issue of Equity Leaders Weekly, we take a look at the implications of a breakdown by the Russell 2000, and at the recent rise in US traded interest rates.
Archer Daniels Midland (ADM), an agricultural commodity trading and storage company, recently returned to the Green Favored Zone of the SIA S&P 500 Index Report and has climbed to its highest level since 2009 after spending most of the last 13 years stuck in the red zone. Yesterday, ADM finished in 61st place, up 37 spots on the day and up 143 positions in the last month.
US oil & natural gas producer EOG Resources (EOG) returned to the Green Favored Zone of the SIA S&P 500 Index Report and since then, it has climbed 30.7%, including a 20.4% gain so far this month. Yesterday, EOG finished in 6th place up 102 spots in the last month.
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