Don't Ignore This Chart!

Expedia Taking Road Less Traveled

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U.S. equities have been very weak since mid-August with many sectors, industry groups and individual stocks broken down technically.  In recent days and weeks, many high profile stocks have struggled to clear falling 20 day EMAs.  So it's always nice to see industry groups or stocks bucking that trend and actually performing well.  Travel and tourism ($DJUSTT) is one such industry group and Expedia (EXPE) is one such stock.  In late July, EXPE extended its multi-year rally with solid quarterly revenues that matched Wall Street estimates and quarterly EPS that beat Street estimates.  After filling its gap a few weeks later near 107, EXPE is once again on a roll and breaking out despite a poor market environment.  Its performance has helped lead the DJUSTT to the brink of a breakout as well.  Below is a chart showing the absolute and relative strength of EXPE and the relative strength of DJUSTT:

Visually this chart shows that travel and tourism is very strong relative to the S&P 500 and EXPE is one of the strongest stocks in this space.

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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