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On the SPOT blog (07/22/2022) [U..]

Updated: Aug 30

US markets did an 'Aw, Snap' today and all major US indices closed the day in red. The effect of SNAP's results were particularly rough for META and GOOGL. It will be interesting to see these on Monday to check if this was overdone or the sentiment continues. Then, GOOGL reports on Monday or Tuesday (I think after markets close). GOOGL has had a rough year so far that seems to be emphasized by the fact that it didn't seem to get the "love" after its recent stock split (like the one witnessed when TSLA and AAPL did their stock split). Unless GOOGL lifts itself and the markets after it reports its results, next week might present even more turbulence for it as focus would soon be on Federal Reserve's rate hike decision on Wednesday. Speculation might soon start about 0.75 vs 1.0 percent rate hike that might add to earnings season volatility. Next week also has many big tech and many big companies' results so it sure might clarify on the state of the economy.

I think many short-term investors are perhaps taking profits on any opportunity to sell. Speaking of which, let's revisit URI (we already discussed the details here.) since it seems to have shot back up into our premium zone. I like this stock for the long-term so I'm comfortable holding it for a long time (unless fundamentals change negatively). However, for folks who regularly do in-and-out of strong stocks, this could present an opportunity to take some profits. Let's checkout the gScores to assess that.

URI's overall gScore today is -0.5 and micro-gScores are as follows:

Price

0/10

RSI

-4/10

Bollinger bands

-10/10

MACD

-8/10

KF

3/10

OLS

-10/10

MFI

-3/10

Stochastic

-5/5

Options data

2/10

Analysts' recommendations

-10/10

Sentiment score

-5/5

  • Price micro-gScore is very low (neutral). Price fell today and the number of consecutive days that it has been falling is still in the bottom quantile. Current price is till in the bottom quantile of its 52-week range.

  • RSI is showing above average level and falling

  • Current price is near the upper Bollinger band

  • MACD showed buy signal when the price was $244.99 and the number of days in this +ve trend appears to be in the middle quantile

  • KF is showing that current price is slightly below the "filtered" average

  • OLS is showing that its 1Y LS line has a -ve slope while 5Y LS line has a +ve slope. Current price appears to be significantly below the 5Y "expected" average and slightly below the 1Y "expected" average

  • MFI is showing above average level and falling

  • Stochastic is showing overbought level

  • Options data appears bearish based on its calls/puts activity with respect to current price. Short ratio seems fine (< 2.6)

  • Analysts' recommendations are very -ve

  • Sentiment score is -ve

So, URI seems to be barely trading at a premium. It might have some room to run but if it falls two consecutive days and if I'm in it for short-term then I might consider taking profits as it seems to have had a nice run recently. If my investment time horizon is long-term then I'd hold and keep adding to my position when the gScore gets back into my "buy cycle". If the analysts' recommendations micro-gScore improves then at that time, I might increase my buy-quantity. If the quarterly results suggest -ve future then I might consider to take profit anyway and get back in when fundamentals improve. You would obviously decide for yourself.

Here are the technical analysis charts for URI as generated by Gammath™ SPOT:



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