Lowe's looks good

Apr 6, 2018

When a stock can be resilient during broader weakness, I'm interested. The technical picture is looking interesting, too. Several indicators and oscillators are signaling to buy (denoted with round, green arrows). It's held above the 200 day moving average, which also bodes well.

I suspect we'll get weakness tomorrow, as futures fell sharply earlier. I've already entered (on Tuesday) a small position in actual shares, I'm hoping this ends up an investment. I'll add on additional weakness but am keeping a tight leash on it or hedged with puts. The recent low is at $83.08.

Apr 7, 2018

Trade active

As I expected, the markets were week on Friday for a litany of reasons (trade war, jobs numbers, market technicals, bond yields, etc).

However, shares of LOW held up nicely, declining a modest 0.5%. That relative strength against the broader selloff in major indices (SPX, DJI, RUT, NDX, IXIC) should be viewed as bullish.

The intra-day low was set at $87.22, which coincides with the top of the shaded green box on my chat that I said was strong support (click the "play" button on the chart to see how my thesis has played out).

I've already started a position ($86.94 purchase price) and am looking to add with confirmation of a new uptrend. For me, a strong close above the recent swing high at $90.33 would serve this purpose.