Portfolio Purging:

We all are well aware of the selling that emanates from the laggards for tax purposes into year-end, and for those that make a list, one can take advantage of it. Within technology, many of the software names rallied that have been left out of the tech rally. In the discretionary arena, Chinese names like BABA and JD put up impressive moves Thursday. Looking at some gambling names below that have been just awful, include PENN and DKNG. Now when it rains some pour down heavier than others and the ratio chart below shows that with PENN UNCH over the last one year period and down 29% over the last 3 months. DKNG by comparison fell 18% over the last one month and 41% over the last 3 months. Each is more than 60% off their 2021 highs, but to me, if one had to pick I would go with PENN. On its chart, it has carved out a short, bullish inverse head and shoulders formation. A break above the neckline pivot of 53 carries a measured move to 62, but keep in mind measured moves are just guidelines and often have investors selling prematurely and leaving a lot on the table.

This article requires a Chartsmarter membership. Please click here to join.