• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

Charts of Polaris Still Lack Horsepower

It seems sellers remain in control of the shares of the maker of off-road vehicles and powersports equipment.
By BRUCE KAMICH
Nov 10, 2020 | 07:59 AM EST
Stocks quotes in this article: PII

In his first Executive Decision segment of "Mad Money" Monday, host Jim Cramer spoke with Scott Wine, chairman and CEO of Polaris Inc.  (PII) , the off-road vehicle maker that saw its shares fall sharply Monday as investors were quick to dump outdoor and recreation stocks on news of a promising Covid-19 vaccine.

Wine said demand is strong for the company's vehicles and Polaris continues to be  constrained by supply. He said it's not practical to expect its suppliers to ramp up production by 50% in a matter of months. 

Polaris is also seeing strong demand for the light tactical vehicles it is selling to the military. The company has debuted 11 products for the military over the past 12 years and those vehicles will continue to be in demand, Wine said. That's because Polaris builds those vehicles to the exact specs the military needs.

Let's check out the charts of Polaris again. We last looked at PII on Sept. 30 and wrote at that time, "There are enough bearish signals from the indicators on PII to keep us from going long. Trading volume has increased on the downside on the daily chart and the weekly chart and that is rarely the pattern of accumulation or buying. Avoid the long side of PII."

In this updated daily bar chart of PII, below, we can see that prices made a huge outside day and lower close on Monday. Prices failed to break the early October highs and dove in one day to retest the late October lows. PII is in position to test or break the September lows. Prices are below the declining 50-day moving average line and just a slightly above the flat 200-day moving average line. The On-Balance-Volume (OBV) line has been on defense since late July and still tells me that sellers of PII are more aggressive. The Moving Average Convergence Divergence (MACD) oscillator looks like it could fail at the underside of the zero line. 
 
 
 
In this weekly bar chart of PII, below, we can see a chart and indicators that are poised to possibly weaken. Prices are trading just above the flat 40-week moving average line and look ready to test or break support around $90. The weekly OBV line and prices peaked in August and suggest that sellers are getting the upper hand. The MACD oscillator has been in a take profits sell mode and is just slightly above the zero line now. 
 
 
In this daily Point and Figure chart of PII, below, we can see that the software shows an upside price target, but a trade at $88.19 or lower is going to be a new low for the recent move down and should weaken the chart enough to turn it bearish. 
 
 
Bottom line strategy: The fundamentals of PII are one thing but the charts tell me another story; avoid the long side as long as sellers seem to be in control. 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Consumer | Transportation | Mad Money | Executive Interview | Real Money | Consumer Discretionary | Sports | Coronavirus

More from Stocks

Corrective Action Produces Fading Confidence and Technical Damage

James "Rev Shark" DePorre
Feb 26, 2021 5:08 PM EST

It's dangerous to have too much exposure now, but the potential for a good recovery is there once interest rate issues are digested.

I'm Intrigued by the Recent Pullback in Aurora Mobile

Timothy Collins
Feb 26, 2021 3:30 PM EST

While the Chinese company is still not profitable, it is cash flow positive.

Salesforce Gets a Quant Downgrade on Top of Weakening Charts

Bruce Kamich
Feb 26, 2021 12:50 PM EST

Here's what investors and traders need to think about.

My Preference Right Now Is to Buy Pre-Deals

Timothy Collins
Feb 26, 2021 12:36 PM EST

I've added a few names that I see as a great risk-reward because of the limited downside.

I've Been a Buyer Friday, Making Partial Buys Like I Always Do

James "Rev Shark" DePorre
Feb 26, 2021 12:07 PM EST

It's premature to predict that a low has been made, but plenty of stocks are quite washed-out already and are starting to find support.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 11:32 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Navigating a Market Correction
  • 11:29 AM EST GARY BERMAN

    Where Does the Nasdaq Go From Here?

    Where does the Nasdaq Composite (CCMP) index go fr...
  • 12:31 PM EST GARY BERMAN

    Has the Short-Term Top Come for the XLF/Banks?

    The has triggered a long-term overbought signal ...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login