In this briefing:
- Komatsu, HCM and CAT Tactical Recovery Targets and Macro Pivot Support
- Gold: Dovish Central Banks May Sustain Rally; Closing Our GLD Short
1. Komatsu, HCM and CAT Tactical Recovery Targets and Macro Pivot Support
We thought a technical view on these counters would help clarify where tactical rally targets come into play as well as more important macro support levels where a basing process is expected to begin.
Key resistance points can be used as short zones with key pivots stops and limit levels that reign in risk.
All three stocks display varying degrees of a macro descending corrective wedge formations that have yet to fully mature.
CAT stands out as the more buoyant of the group and faces its own set of upside pivot resistance points with solid macro support to work with on weakness.
We wanted to fold in a technical view with Mio Kato, CFA and his insight Komatsu, HCM, CAT: The Stock Punishment Does Not Match the Outlook Deterioration Crime . This group may be ahead of the earnings curve and why we may see more gas in a corrective bounce cycle (CB easy policy and the hunt for value may be part of the rally) before more pressure points are hit to re test macro support targets.
2. Gold: Dovish Central Banks May Sustain Rally; Closing Our GLD Short
Central banks around the world have signaled their willingness to return back to the Easy Money Playbook in their quest to re-stimulate economic growth and inflation. This significant shift in market expectations has been the key factor driving the recent rally in Gold (GOLD COMDTY) prices, and it appears to have legs. As such, we are closing our Spdr Gold Shares (GLD US) short.
Get Straight to the Source on Smartkarma
Smartkarma supports the world’s leading investors with high-quality, timely, and actionable Insights. Subscribe now for unlimited access, or request a demo below.
