With a plethora of material to cover today, from the rate cut to the GDP to declining U.S. personal consumption, I decided to go with a one stock focus.
Beyond Meat stock (ticker BYND).
Personal consumption will rise.
Yes, Hammy is quite happy about this company as well.
And why shouldn’t he be?
After all, China has lost 100 million pigs to African swine fever.
Although the imports from Europe have increased by 54% thus far.
On October 28, Beyond Meat (BYND) reported better than expected third quarter earnings.
Yesterday, BYND stock price dropped 22%.
Today, BYND’s stock price rose by nearly 10%.
Beyond Meat’s CEO said today that he expects that the company will become the “Amazon or Tesla of the $1.4 trillion meat industry.”
Practically every person I talk to no matter how young or old, vegan or carnivore has bought a Beyond Meat burger or sausage.
So, if the CEO is right, what must the price do from here?
The all-time high occurred on July 28 at $239.71.
The IPO opening price was $46.00.
After making a classic peak top with blow off volume, we were hardly surprised to see the price decline.
However, as much as the price was overblown on the upside, it’s matched by how overblown it got on the downside.
The volume on yesterday’s decline was 10 times the average daily volume.
Today, the volume was about 6 times the average.
That makes for a blow off bottom.
The classic reversal bottom marginally confirmed today with a close above 88.88 or prior day’s high.
Yesterday’s low was 80.10, which gives traders a reliable line in the sand or risk point that must hold.
It’s possible that the stock will gap above the last 2 days of price action.
That would signal an exhaustion gap and another confirmation of a trend reversal.
The magenta line is a 10-day moving average. The stock does not have enough history for a 50 or 200-DMA.
From a consumer instinct standpoint, I believe that fake meat is a megatrend.
As a vegan for 20-years, that gives me personal satisfaction.
By the way, I do not like the Beyond Meat products because they do taste too much like meat.
Nevertheless, my carnivorous husband and many other carnivores like it, and that thrills me for so many reasons.
Hammy has not been too right on his market predictions for a crash this year. However, I imagine he’s rooting hard for fake meat!
S&P 500 (SPY) 300 support. 302 pivotal. Another new all-time high 304.55.
Russell 2000 (IWM) 155-156 Key support to hold 158 resistance
Dow (DIA) 270 pivotal support. 265.50 support
Nasdaq (QQQ) All-time highs at 197.83. 195.55 support
KRE (Regional Banks) 55.00 pivotal
SMH (Semiconductors) 127 support and ATHs at 130.16
IYT (Transportation) 195 pivotal
IBB (Biotechnology) 105 pivotal 108 resistance
XRT (Retail) 44 failed-now pivotal resistance
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.
