Twitter (TWTR) has been in a strong "NoGo" trend since October of last year. While there hasn't been much for bulls to get excited about, we are looking at a pause in the bearish price activity. The GoNoGo Oscillator has been riding the zero line as price rallied these past few weeks. This has caused the climbing grid of the GoNoGo Squeeze to reach its extreme and stay there. This prolonged period of reduced volatility makes us anticipate a break out of the squeeze. We will be watching to see if GoNoGo Oscillator once again gets ultimately rejected by the zero line, in which case we could expect further price deterioration. If, however, it breaks out of the squeeze into positive territory, then that would be a sign that the "NoGo" trend is in trouble.
In this week's edition of the GoNoGo Charts show, the S&P 500 is still hovering at a critical inflection point. We saw overall "NoGo" conditions for the daily period trend of the S&P 500, but the GoNoGo Oscillator breaking through the zero line after a max squeeze was an encouraging sign for the bulls. Warnings from U.S. officials that a Russian invasion of Ukraine might be imminent late Friday afternoon may have contributed to the late-session sell-off. Alex and Tyler will review the longer-term weekly trend as well to understand the weight of the evidence toward overall risk appetite.
This week's show will look at several different Heat Maps using the GoNoGo methodology to isolate the trend conditions on a relative basis for Leading & Lagging Style Factors. For clients who consider style-box allocation strategies, it's helpful to compare GoNoGo Conditions up and down the cap scale and between value and growth shares. GoNoGo Charts offer a view on energy and gold this week in terms of what is extended and what is just getting started. Finally, Alex and Tyler consider the reopening trade both in terms of the $CRUZ ETF and Live Nation as a single stock idea for those looking to express a view that travel, leisure and entertainment sectors of the economy are preparing to bounce back.
This video was originally recorded on February 17, 2022. Click this link to watch on YouTube. You can also view new episodes - and be notified as soon as they're published - using the StockCharts on demand website, StockChartsTV.com, or its corresponding apps on Roku, Fire TV, Chromecast, iOS, Android and more!
New episodes of GoNoGo Charts air on Thursdays at 3:30pm ET on StockCharts TV.
