Stocks This Week: Sell Short General Dynamics And Cummins
May has traditionally been a weak month. It is especially weak in an election year and in a year ending in zero. The market has risen too far and too fast. In similar rallies, the market has paused when it has reached this point, about 6 weeks past a low. Prices are likely to decline.
General Dynamics GD is in a down phase, and the weekly cycle points down to May 23rd. The stock cycles have been very reliable. All five buy and sell signals have been profitable in the last year.
Relative strength has been weak all year. The $120-$117 area is the target.
The Cummins weekly cycle is falling and will not bottom until May 27th. All four sell signals in the last year have been profitable. The stock may retreat to $150. The stock is overbought on a daily basis.