Weekend July 26, 2020
Our outlook is that a pullback began this past week in the general markets. That should lead to a trade able low early August. And that should lead to a rally into late August. We are still positive stocks into this next year.
FANG pulls back
Each stock made a lower high on the rebound so this re enforces our view of a pullback. These are the stocks that have powered multiple indexes.
NYSE Advance Decline Line
Notice how much this formation looks like it did at the JUNE 8 TOP. The MAs are widening and price is curling over. AT bottom the Pmo is making a lower high. RSI is over doe now as it was June 8.
Nustar NS Cullen Frost at bottom
MS and CFR have dipped back under their 50 day MAs. Again this re enforces the idea of a pullback. I do not have a feel for how deep this pullback will be, just have to track what is going on and start adding as PMO bottoms.
DIV and VLO
This is quite similar to NS and CFR above. DIV and VLO have pulled back from their highs, CFR under its 50 day MA , DIV holding just above.
Here is the reason to add these stocks on the next low.
Stock Dividend indicated on yahoofinance.com
CFR 3.89%
DIV 11.53%
NS 11.2%
MVO 227%
Gold and silver look toppy as does Tesla. Stay tuned for evidence of an important short term low.
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