With all of the talk in the business and financial media about new all time highs for the big market indexes, you might think all stocks are joining the fun. You would be wrong. These 5 well-known New York Stock Exchange equities this month are in clearly identifiable downtrends.
Maybe they’ll stop heading back down and regain former momentum at some point but right now they’re showing more selling than buying. Analysts could spend a lot of time explaining the fundamental reasons for such weak performance. Price chart action like this suggests a second look.
Here’s what the all time high last week for the S&P 500 looked like:
Ups and downs but a steady upward slant from summer into fall and then from fall into winter — for the major index most widely quoted and referred to. Take a look at the S&P 500 chart first and then compare it to these individual stocks.
Dun & Bradstreet Holdings.
The software company peaked in early November and has steadily eroded in price since that time. Dun & Bradstreet Holdings is now approaching the low for that month — a breach of level may be in the offing if the selling picks up and continues. Those bullish on the stock would want to see a break above the recent downtrend line.
The packaged food company, with global reach these days, is clearly down trending since the late July peak. Kellogg made another stab at a higher high in early September but failed. Since then the stock has steadily traded mostly below the Ichimoku cloud, not a good sign, typically.
The big defense contractor hit its high at the beginning of September and then the selling kicked in. By late October, Northrup Grumman had almost touched the July low before a brief rally that failed. The stock resumed the downtrend into the month of December while other stocks hit higher highs.
The waste management firm had a good year of price action up until mid-November when the sellers took over. Republic Services has been unable to rally again even as stocks in general hit higher highs. A break above that downtrend line might indicate serious renewed buyer interest.
Another one in the waste management business, this one with the name that says it. After a good year of gains, the stock peaked in mid-November and it’s been steady selling since then. Again, with the major indexes hitting highs last week, it’s odd to see investor unloading in a firm as well-known as Waste Management.
It’s certain that good reasons exist for under performance in specific sectors and individual stocks. Price action is telling us that not everything is as bullish as you might have heard in the business media.
I do not hold positions in these investments. No recommendations are made one way or the other. If you’re an investor, you’d want to look much deeper into each of these situations. You can lose money trading or investing in stocks and other instruments. Always do your own independent research, due diligence and seek professional advice from a licensed investment advisor.