Stocks
Costco Wholesale Corp. (COST) has held up better than rivals Target Corp. (TGT) and Walmart Inc. (WMT) so far in 2022, trading well above the 50-week moving average near 460. The big-box retailer will have an opportunity to build on recent gains after Thursday’s Q2 2022 earnings report, which is expected to show a healthy profit of $2.72 per share on $51.36 billion in revenue. The stock rose more than 6% after beating Q1 estimates in December.
Raytheon Technologies Corp. (RTX) makes missile systems, aircraft engines, and an assortment of surveillance and military-intelligence apparatus. The Ukraine war has reawakened buying interest in the stock, generating a cup and handle breakout above resistance in the 90s. iShares US Aerospace and Defense ETF (ITA) has lifted to a two-year trendline at the same time, setting the stage for a sector-wide breakout that could yield major upside in coming weeks.
Dow component Salesforce Inc. (CRM) reports earnings after Wednesday’s closing bell, with analysts looking for a profit of $0.75 per-share on $7.24 billion in revenue. The stock hasn’t fared well since joining the venerable index in August 2020, dropping 17%, and is currently trading near a 52-week low. However, it bounced strongly at the 200-week moving average on Thursday, raising odds for an intermediate rally that could add 30 points before bears return in force.
ETFs
SPDR Gold Trust (GLD) rallied to a 13-month high last week before stalling within 12-points of 2020’s all-time high. The fund reversed into week’s end, leaving behind a bearish shooting star candlestick that predicts the rally is over, at least for now. However, the monthly chart has completed the next leg of a cup and handle pattern going back to 2011, raising odds for an historic breakout that lifts the yellow metal to 3,000 and the fund to 300.
Cryptocurrencies
Bitcoin (BTC) sold off within 1,500 points of the January low at 32,950 on Thursday and bounced with equity markets, continuing mixed price action that’s testing 2021 support around the 30,000 level. It isn’t wise to look for sustained upside while this process unfolds because an active monthly sell cycle is still in control of the ticker tape. In the meantime, 44,000 looks like the resistance level to watch for a sustained breakout.
Catch up on the latest price action with our new ETF performance breakdown.
Disclosure: the author held SPDR Gold Trust in a family account at the time of publication.
