We finish the year with a change of pace. In the Daily Stock Report, we usually focus on stocks that are rocketing up/down the rankings in SIA Charts reports, entering/leaving the Green Zone or breaking out/down technically. There are stocks, however, which may be less flashy, but generate significant returns by remaining in the Favored Zone for an extended period of time.
A major breakout is underway in Interfor (IFP.TO) shares. Recovering from a spring selloff, the shares have been steadily recovering lost ground since August, forming a bullish Ascending Triangle pattern of higher lows below $36.00. Yesterday, the shares blasted through that barrier to a new all-time high on a spike in volume, indicating a surge in investor interest. The shares continued to climb up through $40.00, confirming that a new upleg has started within a long-term bullish trend.
The Santa Claus Rally which started last week, has continued into this week but the initial rebound momentum has slowed. In this issue of Equity Leaders Weekly, we look at recent action in the Utilities sector and renewed interest in the UK market.
From November of 2020 through to October of this year, Cybersecurity software producer Fortinet (FTNT) shares were under steady accumulation, consistently advancing in a rising channel of higher highs and higher lows, while holding above their 50-day average. For the last two months, upward momentum slowed and the shares consolidated their gains. This week, the shares have resumed their long-term uptrend, breaking out over $350.00 to a new all-time high.
Fertilizer producer Nutrien (NTR.TO) has been steadily climbing up the relative strength rankings in the SIA S&P/TSX 60 Index Report since May. So far this month, the shares are up 10.0%. Yesterday, Nutrien finished in 7th place, up 3 positions in the last week.
Since returning to the Green Favored Zone of the SIA S&P 500 Index Report back in September from a trip down into the red zone, shares of fertilizer producer CF Industries (CF) are up 34.1%. The shares have continued to march toward the top of the rankings. Yesterday the shares moved up to 4th place, up 9 spots on the day and up 34 positions in the last month.
Back in October, a six-month decline in computer memory producer Micron Technology (MU) shares was contained by an uptrend support line. Since then, distribution has reversed back into accumulation and MU’s primary uptrend has resumed. In recent weeks, the shares have regained and held above their 50-day average, snapped a downtrend line, and this week, have started to accelerate upward, clearing $90.00.
With defensive stocks attracting renewed interest, long-beleaguered drug store chain CVS Health (CVS) has been climbing back up the rankings in the SIA S&P 100 Index Report, and yesterday it returned to the Green Favored Zone for the first time since May of 2016, over 51/2 years. CVS finished yesterday in 19th place, up 6 spots on the day and up 16 positions in the last month.
General Motors (GM) has tumbled down out of the green zone of the SIA S&P 500 Index Report, back down into the Yellow Neutral Zone as its relative strength deteriorates. On Friday, the shares fell 13 spots to 29th position after the shares fell 5.5%.
A major breakout is underway in records management and document shredding service provider Iron Mountain (IRM) shares. Yesterday the shares blasted through $50.00 to a new all-time high, confirming the recent completion of a bullish Ascending Triangle pattern. Combined these breakouts signal that the consolidation phase which started back in August is over and that a new rally phase has started.
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