The three little bears of charity portfolio Action Alerts PLUS are a rather diverse group. Other than all the daily setups being bearish, there really isn't much in the way of commonality for Marathon Oil (MRO), Walgreens Boots Alliance (WBA) and Eaton (ETN). It is truly the papa bear, mama bear and baby bear.
If oil comes back to life, Marathon Oil may have the best shot of the three in seeing a bounce, but I don't believe it will change the bearish daily picture.
The stock is stuck in a very bearish channel. Within those channels, we can note a series of repeated bear flags, leading to additional breakdowns.
A push higher over the next few days would have a chance to reverse that pattern, but until price gets back over the resistance of the bearish channel, near $19, I'd be in no hurry to buy.
One might point to the very oversold levels in everything from relative strength index (RSI) to moving average convergence divergence (MACD) to commodity channel index (CCI), but I would counter with: so what?
We've been bearish in all of those since early May and the stock has fallen from $29 down to $17 without even seeing a $2 bounce along the way. Just because something is oversold isn't a reason to buy. Wait for a trigger.
There are other setups with triggers in place if you want exposure to energy. Take a look at the Action Alert PLUS daily bulls from earlier today to find a few.
Walgreens has been a darling for quite some time, but the stock is threatening a roll over here. Shares are fighting to hold $92, and while I don't think the downside is huge here, we have the setup to fill the two gaps from July and push price down into the $86-$87 area.
This would also match support levels from before the gap. While the price isn't too far off the recent high, we've seen the secondary indicators cross over bearishly in front of price.
Early August saw the RSI cross below 50, the CCI cross under 0 and the MACD cross over in favor of the bears all at the same time.
If price can get back over $94 joined by at least one indicator, I would become neutral on the stock. However, if we blow below $91.70, I'll be looking at a short play on this one.
Last up is Eaton, which was a bearish concern back on June 21, 2015, when it was trading just over $70. Now, some $10 later, there are concerns again, but at least a little hope this time.
Eaton has been consolidating in a channel for the past three weeks and the next break should be key. A move over $61.30 along with the bullish crossover in the MACD may make this one worth a reversal long.
That's a big maybe. Eaton is closer to the breakdown than the breakout right now. The stock is still struggling to break over the 13-day simple moving average (SMA), barely holding price support and can't get the CCI or RSI to poke their heads above the midline.
If we break below support, then I would target another $4 of downside before Eaton finally finds a bottom.
This is one that could trigger either way, but the bears have the advantage, and my focus would be on that trigger at the moment.
Any bounce feels contained at $62.75, with resistance along the way. Any drop below current support has no barriers. I'm not ready to get my hopes up yet on this one.