The stocks of the major credit card companies were stellar performers until recently. Trifecta Stocks holding MasterCard (MA) was up as much as 30% this year versus the S&P 500's paltry single digit return. Dow Industrial Average component Visa (V) racked up a 40% return at its zenith.
Unfortunately, this outperformance has run into a credit check.
MA broke a longer-term uptrend (see the chart above) drawn on the chart. Once the decline got underway, the volume of trading spiked. This sharp increase in volume gives validity to the break of the trend line. It means that people saw the same trend line and acted on it, creating the volume.
The trend line on V is not textbook neat, but prices have broken sharply and rallies are failing. Note the recent downtrend drawn along the highs of the rally failures.