With a strong move upward since early October, Ferrari ( RACE) , the luxury car company, is looking quite strong.
This Action Alerts PLUSBullpen name has really made a nice move on very strong volume. In the chart below, notice those heavy green bars at the start of February?
Indicators are mixed, the Moving Average Convergence Divergence (MACD) on the daily chart has rolled over, but the ultimate oscillator has caught support around the 50 level.
The Trader's Dynamic in the bottom pane has rolled over as well, but price action is not horrendous. Actually, the current price is only about 2% off the recent highs, so perhaps the indicators are a bit of an exaggeration.
The tight consolidation of late is on very low turnover. That's what you want to see during a corrective phase; big money is not letting go of the stock.
While we have Ford ( F) in the AAP portfolio, Ferrari is clearly one of interest and on the radar. Luxury goods seem to do well in the face of a poor economy (at times). Ferrari is one of those brands that has loyal owners. Loyalty is not going away.
(Real Money contributor Bob Lang is a team member of TheStreet's Action Alerts PLUS, where this commentary originally appeared on Feb. 24. Want to be alerted before AAP buys or sells stocks? Learn more now. )
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Previously know as Pinduoduo, weak consumer spending has plagued the stock.
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