GE Gets Bullish Update After $12 Billion Record Report
I bought the stock after news broke.
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Is it time to get back Into (GE)?
Don’t ask me. I already have. I saw the report at Reuters on Friday morning. I checked the charts. I bought the stock. This Is that story.
According to the report, GE Aerospace announced on Friday that the firm had signed sales and service agreements worth more than $12.9 billion at the annual China International Import Expo a record signing value for the company. This was a company record haul for this annual event.
The China International Import Expo was the world’s first national-level exhibition dedicated exclusively to imports. The event serves as a flagship platform designed to promote the Chinese domestic market to foreign enterprises and boost global trade collaboration.
This year’s event, the ninth annual, just began on Thursday, November 5 and runs into next Tuesday, November 10. GE has already come away with a record haul. Notable among these agreements: China Eastern Airlines (CHEAF) will purchase 202 LEAP-1A engines to power 101 newly ordered Airbus (EADSY) A320neo-family aircraft. The deal also covers spare engines and long-term service support. This came after GE sold 1,800 engines at the Farnborough Airshow in England back in July. GE is hot.
Beaten Up
Readers will likely recall that I had been in GE earlier in the year. I could look it up, but I really don’t remember what month the Sarge-folio exited that position. That said, we have never stopped liking the aerospace business and have always been fans of CEO Larry Culp. Two weeks ago, the stock reacted badly to what were solid earnings that came bearing improved guidance. I notice whenever there is a major industrial corporation that improves its outlook for operating income and free cash flow. Wall Street didn’t care. It might now.
The Chart
Here we have a daily chart that shows a stock breaking out from a falling wedge of bullish reversal that concluded in mid-October. The stock has taken back its 21-day EMA, getting the swing crowd on board. Next up was the 50-day SMA, which has acted as support for four days running. That implies professional accumulation. Now, the stock is making a run at its 200-day SMA. Should GE retake that line, the pros will (in my opinion) trip over each other to rebuild their long positions.
Moving on to the indicators, relative strength is better than neutral but nowhere near entering into a technically overbought condition. That’s bullish. The daily MACD is rockin’. The histogram of the nine-day EMA is now well into positive territory (short-term bullish), as the 12-day EMA has overtaken the 26-day EMA and pulled away (medium-term bullish). Once the 26-day line moves into positive territory all three of these lines will stand above the zero-bound with the 12 day above the 26 day. MACDs do not get more bullish signaling than that. Giddy up.
At the time of publication, Guilfoyle was long GE equity.
