We believe investors need to be very careful on this week's bounce in the stock market, but if there is one stock that looks like it’s getting washed out on a technical basis, it’s UPS. So this one is getting ripe for a SHORT-TERMbounce. We do not cover the stock, so we cannot touch on the company’s longer-term fundamental potential. However, looking at its RSI chart, it dropped below 17 yesterday. You have to go all the way back to 2005 to find a time when UPS was more oversold on a short-term basis that it has become now…at least based on its daily RSI.
Since we’re worried about further decline in the broad market, we don’t not think this is one that long-term investors should buy with both hands. However, it should be a good one to start to nibble on for those who like its longer-term fundamental prospects…and one where very-short-term traders will be able to make some money in over the coming days and weeks. (Two stocks attached below.)
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Matthew J. Maley
Chief Market Strategist
Miller Tabak + Co., LLC
Founder, The Maley Report
275 Grove St. Suite 2-400
Newton, MA 02466
Although the information contained in this report (not including disclosures contained herein) has been obtained from sources we believe to be reliable, the accuracy and completeness of such information and the opinions expressed herein cannot be guaranteed. This report is for informational purposes only and under no circumstances is it to be construed as an offer to sell, or a solicitation to buy, any security. Any recommendation contained in this report may not be appropriate for all investors. Trading options is not suitable for all investors and may involve risk of loss. Additional information is available upon request or by contacting us at Miller Tabak + Co., LLC, 200 Park Ave. Suite 1700, New York, NY 10166.