In his "Homework" segment of his Mad Money program on Friday night, Jim Cramer followed up on a few stocks that had stumped him during earlier shows. He said that Smartsheet (SMAR) , the cloud collaboration software provider, sounds terrific, but Wall Street has become hostile to growth stocks, as rising inflation is the enemy of growth.
SMAR has declined from $34 to around $23 in less than two months. See the chart below. Prices are below the cresting 50-day moving average line. The daily On-Balance-Volume (OBV) line is bearish and so is the Moving Average Convergence Divergence (MACD) oscillator.
During the segment Cramer said he'd rather go with Atlassian Corp. PLC (TEAM) , which has a proven track record. We have more price history to work with than SMAR. In this daily bar chart of TEAM, below, we can see that prices have declined this month to retest the $70-$60 support area (former resistance on the way up in May, June and July). Prices are below the cresting 50-day moving average line and above the still rising 200-day line. The daily On-Balance-Volume (OBV) line has lost ground this month signaling a shift from aggressive buying to aggressive selling. The MACD oscillator moved below the zero line this month to an outright sell signal.
In this weekly bar chart of TEAM, below, we can see some bearish clues on this longer time frame. Prices are still above the rising 40-week moving average line but that could change this week. The weekly OBV line has turned down and the MACD oscillator has crossed to the downside for a take profits sell signal.
In this Point and Figure chart of TEAM, below, the computer program is not impressed with the potential support below the market and is projecting a downside price target of $56.56.
Bottom line strategy: a bear market driven by a liquidity squeeze can override bullish fundamentals. The charts do not favor SMAR or TEAM at this point in time.