What started out as a winner didn’t end that way. Driven by multiple reasons, including concerns President Donald Trump might be impeached to broad worries about consumer confidence, the S&P 500 ran to a loss of 0.84% for the day.
Chesapeake Energy (NYSE:CHK) led the charge, falling nearly 6% in step with a similar setback for crude and natural gas prices. At the other end of the spectrum, Boeing (NYSE:BA) was up a little more than 1% on the heels of reports that its beleaguered 737 MAX jet is at least one step closer to being re-approved by the International Air Transport Association. There just weren’t enough names like Boeing to keep stocks out of the red.
As for names worth a closer inspection today, however, it’s the stock charts of Starbucks (NASDAQ:SBUX), Walt Disney (NYSE:DIS) and Mastercard (NYSE:MA) that are of the most interest.
Walt Disney (DIS)
Walt Disney shares looked unstoppable earlier in the year, with the bulk of the 2019 gain taking shape in April. DIS stock bolted higher on April 12 after unveiling its new streaming service that could prove a threat to Netflix (NASDAQ:NFLX). Although they’ve been overbought as a result, shares have held that ground gained then.
That’s quickly changing though. In fact, the pace and scope of the recent weakness may well be enough to drag DIS stock under a key technical support level that has taken shape since May. Given the undertow, it seems unlikely it will hold up as a floor again.
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Mastercard (MA)
A little more than a week ago, Visa (NYSE:V) was featured as a potential bearish prospect. While it had made a heroic move since early 2017, the weight of that big move was bearing down. Telltale signs of a breakdown were taking shape.
That’s what makes the similar hints dropped by credit card peer Mastercard so interesting and telling. Industry peers tend to move in tandem, so to see them both more or less doing the same, we have to take the clues seriously.
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Starbucks (SBUX)
Finally, Starbucks was a solid winner late last year and into this year. But, it went absolutely ballistic beginning in May.
That red hot move, however, may have ultimately driven SBUX shares into what’s more or less a blowoff top … a buying frenzy that flushes out the last of the would-be buyers. The make-or-break factor has been tested fairly vigorously since last week.
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As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley.
