Taking a Utilitarian Approach: Watch the DJ Utility Average
Why? The 10-year hasn't made a lower low in quite a few weeks.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
The Market
I guess everyone is waiting around for the Jackson Hole speech by Fed Chairman Powell later in the week. Because the market was, once again, dead. Nothing changed.
But I do want to discuss bonds. And the Utes.
I have no idea what Powell will say or how the market will react later this week. But I do want to note that the Utes have been correcting for the past two weeks. I see support at that 1080 area (uptrend line), so nothing has broken yet. But considering everyone is recommending being long Utes, I’d put this on your radar screen.
I would do that because the yield on the 10-year is getting my attention. Despite all the talk of lower rates coming, rates haven’t made a lower low since May. Right now I still see resistance in that 4.45%-4.55% area, but the action in the past few days — actually, since early August — has my attention because despite all the rate-cut chatter, this has moved upward.
Away from that I should note that GE Aerospace GE hasn’t rallied at all but has not broken that 260 area either.
Finally, for those who are interested in the Nikkei I want to note that the DSI is 82. I will report again should it stretch over 85, which would be cautionary.
New Ideas
I was asked where I saw support on CrowdStrike CRWD and I would say it’s between here (425) and 400. If I am off, then it's that lower line, which currently comes in around 385 but by the end of the month/early September will be around 400. So unless it gaps down below there, support is close by.
Today’s Indicator
The 30-day moving average of the advance/decline line has been drifting lower since early July. I suppose it’s a perfect representation of the chop-and-group rotation that we’ve seen. Just as something gets traction, it stalls or pulls back (see the drugs today).
Q&A/Reader’s Feedback
Helene welcomes your questions about Top Stocks and her charting strategy and techniques. Please send an email directly to Helene with your questions. However, please remember that TheStreet.com Top Stocks is not intended to provide personalized investment advice. Email Helene here.
Oracle ORCL is not my kind of chart anymore (I was quite bullish on it months ago) because it has had quite a run and now stalled out. It has also reached its upside target of 250-260. But unless/until it breaks 240 this is just an area to take a few profits while the stock either consolidates or builds a top.
The blue line (45-ish) is decent resistance for Viking Therapeutics VKTX and there is a measured target around 50, so I suspect VKTX should make its way into that area (45-50). I do not want to see it back under 35.
I don’t love the chart of Rockwell Automation, ROK but if it can stay over 330, it gets the benefit of the doubt that this is just a sideways move before it goes up again.
