KL [PRICE DOUBLE TOP | INDEX RELATIVE DOUBLE TOP] | Target = $40, Stop = $24
Kirkland Lake Gold remains our pick from the precious metals group. We originally looked at the miner on October 12th 2018, just ahead of its breakout from the consolidation at the time. The uptrend remains underway, well above its 30-week moving average, with new all-time price and relative highs yesterday. Intraday weakness remains an opportunity to enter.
The KL P&F relative chart is against the NASDAQ 100. The ratio shows the gold miner has impressively outperformed the technology index since 2015 plus sits at a record relative high.
HRL [PRICE DOUBLE TOP | SECTOR RELATIVE DOUBLE TOP] | Target = $50, Stop = $38
Hormel Foods outperformed on Thursday, +1.9% - an announcement after the bell pushed the price up further in the after market. Although P&F direction is down, the chart holds a buy signal from December 2017, the recent retreat is an entry window. 3 box reversal back up is imminent, a move that would resume the primary uptrend.
The HRL P&F relative chart, against the S&P 500 Consumer Staples sector, also exhibits an impressive long-term uptrend. This month's relative pull-back is in line with prior moves.
THS [PRICE DOUBLE TOP | INDEX RELATIVE DOUBLE TOP] | Target = $65, Stop = $55
TreeHouse Foods has been working higher on its price and relative charts over the past year. The price trades safely above both its 10-week and 30-week moving average. P&F direction is expected to soon print a 3 box reversal back up following a natural shallow retreat.
The THS relative ratio, plotted against the NYSE Composite, rallied during January, retracing the overextended down column of Os from 2017.
Results due on February 14th.
DWDP [PRICE HIGH POLE | SECTOR RELATIVE DOUBLE BOTTOM] | Target = $46, Short Stop = $61
DowDuPont dropped 9.23% on Thursday following a disappointing earnings report. The chart reversed down from a ceiling across $60, falling beneath both its 10-week and 30-week moving averages. A High Pole activated yesterday, a warning signal, sell signal is $6 away.
The DWDP P&F relative ratio, versus the S&P 500 Materials sector, provides good reason to avoid longs, underperformance since September 2017. Relative correction resumed yesterday.
USO [PRICE DOUBLE BOTTOM | INDEX RELATIVE HIGH POLE] | Target = $8, Short Stop = $13 - subscriber request
The United States Oil Fund holds upward direction, a counter-trend move following an overextended column of Os. The bounce has carried as far as resistance from the 10-week moving average. A 3 box reversal back down would print at $10.
The USO P&F relative ratio, against the NYSE Composite, is three boxes away from a sell signal and a record low. Given the decade long downtrend, we would be sellers here.