Key Levels for 9 Holdings in a Stressed Market

In our comments earlier on Thursday, we shared the pressure resulting from the fall in Walmart (WMT) shares has dragged TJX (TJX) shares into an oversold condition. As we pointed that out to you, it also triggered a thought that we should show where other holdings in the Portfolio are coming up on potential support levels.

We’ve touched on some of this in the last few days, noting that shares of Builders FirstSource (BLDR) have bottomed near $65 in mid-May and aging in late July.

And we’ve also discussed why we are watching shares of Applied Materials (AMAT) relative to their 100-day moving average. As a reminder, we’re looking to see if it remains a level of support or becomes one of resistance.

We also discussed shares of Paccar relative to their 50-day moving average, making the same comment for them as we did above with AMAT shares and their 100-day moving average.

A few comments before we share the corresponding charts for several others in the Portfolio. With around 8.2% of the Portfolio’s holdings in cash, subject to what develops, we have plenty of room to maneuver with more than a handful of holdings. Decisions will be based on a combination of fundamental factors, position size and upside potential versus downside risk.

To aggressively push the bulk of the Portfolio’s cash into action, we would need to see a steeper pullback in the S&P 500 or the Nasdaq Composite develop. With relative strength index levels above 54 and 49 for the S&P 500 and Nasdaq Composite, that would take a sizable drop from current levels. That gives us another reason to slow walk any efforts to put additional cash to work.

Now, let’s turn and look at several holdings in the Portfolio.

With American Express (AXP), it’s the 100-day moving average were watching.

For the First Trust Nasdaq Cybersecurity ETF (CIBR), it’s the 50-day moving average.

When it comes other Eaton (ETN) shares, we’re looking to see if support at the 50-day moving average holds, but if not there is more support right behind it with the 100-day. We will also want to see the black MACD line flatten out, and that suggests we could see some additional downside in ETN shares near-term.

For Google (GOOGL) shares, it’s the 200-day moving average but at the same time, given where the 50- and 100-day moving average are, the shares may be rangebound near-term.

With Meta (META), we’re pointing out areas where the shares have bottomed our earlier this year, but with attention on the current lawsuit, which will span the next four to five weeks, the shares could bottom out near past levels. However, with the ruling not expected until late September or October, the shares are likely to trade more or less sideways. For us to revisit our Three rating we rating, we would want to see company positive developments emerge for the lawsuit and for Meta to say more about the cloud compute business it recently teased.

We like what we see in the MACD indicator in the lower pane for Waste Management (WM) shares, and the steady or predictable nature of the business is likely to attract interest should the current bout of uncertainty gripping the market continue.

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At the time of publication, TheStreet Pro Portfolio was long AMAT, AXP, BLDR, CIBR, ETN, GOOGL, META, TJX and WM.