If one is old enough to remember this magazine, it garnered, and perhaps still does maintain its pristine reputation. Living in the “fake news” world currently it could be the last publication to have this acclaim. Last October GM was not looked at in a positive light in its Reliability Survey. Conceivably the auto giant took notice, as the chart has been driving higher the last 2 months, pun intended. The stock dropped just 4 sessions in all of June, and July has witnessed just 6 losing days so far. Below is the chart, and how it appeared in our 7/17 Consumer Report. The cup with handle break above a 39.09 pivot is working well POST breakout, and we know the best breakouts work right away. Let PRICE action be your guide, not what you read in the media.
Turtle Wins The Race?
The saying states that those that take their time and plan, often are rewarded. The UBER IPO was criticized, for many reasons, but one for how it was priced. LYFT took its cue from that development and attempted to price it more conservatively. Its current chart looks for productive then UBER’s, whose stock has fallen 2 of the last 3 weeks, with all 3 CLOSING at or in the lower half of the weekly range. It has been trading sideways since the bearish engulfing week ending 7/5, that fell more than 6%. For now LYFT seems to give better risk/reward in my opinion, and we talk about this in depth later in this report.
Some retail names adapt to the post Amazon world, which is not an easy thing to do, while others flounder. To add to that many analysts have been calling for the death of the big box players and mall stores. The chart below of BBY and how it appeared in our 7/12 Discretionary Note, had to overcome both of those scenarios. How they did is of no concern to me, the evidence is in the PRICE action. It would be on a 7 week winning streak if not for last weeks 6 penny loss, but this week is moving right along advancing 4.2% thus far. Look for a grind higher into the summer toward the 86 target price.