Dow Jones Breaks 16-Month Winning Streak

Posted on | by Todd | Leave a Comment on Dow Jones Breaks 16-Month Winning Streak

The Dow Jones 30, along with the SP 500, has posted its first monthly loss since October of 2016.

This has been the longest monthly winning streak since 1959.

However, over the last two days, the DOW has lost over 700 points, or 3%.

And while these headlines will get the attention of investors, it’s the technical significance which should have investors concerned.

Both the DOW and SP 500 dipped below their respective 50-day moving averages, which opens up the probability of range extension to the downside.

As illustrated in the chart below, investors should be prepared to employ defensive strategies and take advantage of stock specific opportunities.

Dow Jones 30

 

 

 

Keep Ramsay On The Radar

Posted on | by Todd | Leave a Comment on Keep Ramsay On The Radar

Shares of RHC remain under pressure and have posted a 6-month low of $62.50 in early trade.

This is on top of yesterday’s 5.75% drop after a weaker profit report.

RHC, Australia’s largest private hospital operator, reported a 3.7% fall in H1 profit to $246 million; most of the weakness is from hospital operations in the UK.

From a technical perspective, the daily price chart shows solid support in the $61.50 to $61.20 area dating back to June 2016.

We’ll  update our signals on RHC and look for a reasonable level to enter the stock.

Ramsay Health

 

ALGO Update: SHL Still Looks Expensive

Posted on | by Todd | Leave a Comment on ALGO Update: SHL Still Looks Expensive

Our ALGO engine triggered a sell signal in SHL on February 5th at $24.85.

In the company’s recent earnings report, their 2018 guidance expects growth in the 6% to 8% range.

This places SHL at 22.5 times earnings, which is considerably higher than its industry peers.

Technically, the next key support level is found at the February 15th low of $23.10.

Sonic Health