In the weakening transportation sector, partly because of Warren Buffett’s weekend comments, there is one area that is doing a lot better.
Want to fly coast to coast?
Not so much.
Want to go to outer space?
Sign me up!
Virgin Galactic (SPCE) reports earnings on May 5.
The stock is outperforming the overall indices clearly well outperforming airline stocks as evidenced through the ETF JETS, down over 6% today.
And while you are traveling, you may want to survive by eating a plant-based diet.
Beyond Meat (BYND) also reports earnings on May 5.
Both BYND and SPCE are two stocks that have our attention.
Virgin Galactic – SPCE – is in a strong caution phase.
Resistance is at 20.00 with support at the 200 DMA or 13.60. In between, has been a bit of a chop fest.
A good report or a move over 20.00 would clear the last 2 months of work.
BYND is in a weak recuperation phase. The price action has seen this trade between the two moving averages.
A move over the 200-DMA is a strong sign, whereas a move under 80 would be weak.
We will be watching for strength.
However, should earnings disappoint, a move closer to the underlying MAs could also turn out a low risk buy opportunity.
Regardless, both are top choices for swing trades. The rest is up to the reaction to earnings, and how the charts line up regarding risk/reward.
S&P 500 (SPY) 280 held. 282 resistance
Russell 2000 (IWM) Held the 50-DMA so waiting for momentum to shift higher
Dow Jones Industrials (DIA) Held the 50-DMA and needs to clear back over 240 for a buy
Nasdaq (QQQ) 209.50 support 216-217 resistance
KRE (Regional Banks) Key as it failed the 50-DMA (but held 35.50 the 10-DMA
SMH (Semiconductors) 131 resistance
IYT (Transportation) 143.64 has to clear. 140 support.
IBB (Biotechnology) Resistance 125
XRT (Retail) 35.00 support 36.70 resistance
Volatility Index (VXX) 40.00 pivotal
Junk Bonds (JNK) confirmed bearish phase support 95.50
LQD (iShs iBoxx High yield Bonds) 127.20 support
Twitter: @marketminute
The author may have a position in the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
