• 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
    • Bruce Kamich
    • Doug Kass
    • 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

CME Group Charts Point to Bullish Future Despite Recent Correction

Buyers of the exchange operator's shares have been aggressive over the last few months.
By BRUCE KAMICH
Oct 29, 2019 | 09:45 AM EDT
Stocks quotes in this article: CME

During the Lightning Round segment of "Mad Money," callers get to ask Jim Cramer about stocks in which they are interested.  On Monday's show one called asked about CME Group Inc. (CME)  "This is best in show. It is doing very very well," Cramer said.

I started out in the commodity business in the early 1970s when the exchanges were all private institutions and you hired your cousin to be your clerk. It is amazing to see how they have changed over the decades. Let's check out the chart of CME here on Tuesday. 

In this daily bar chart of CME, below, we can see that prices started a rally in March that carried to early September. Prices have been correcting lower for nearly two months now, but it does not look worrisome to me. Yes, prices are below the declining 50-day moving average line, but trading volume has not increased on the decline and the daily On-Balance-Volume (OBV) has been extremely firm the past two months. Traders did not become aggressive sellers but instead held their long positions.The Moving Average Convergence Divergence (MACD) did slip below the zero line for a sell signal.  
 
 
In this weekly bar chart of CME, below, we can see that prices have more than doubled in the past three years and the price weakness on the daily chart looks like a plain vanilla correction on this chart. Prices are above the rising 40-week moving average line. The weekly OBV line has been very strong since March and tells us that buyers on this time frame have been very aggressive. The weekly MACD oscillator crossed to a take profits sell signal. 
 
 
 
 
In this Point and Figure chart of CME, below, we can see no distribution pattern; rather, we see only an upside price target of $273 projected. 
 
 
 
Bottom line strategy: The charts and indicators of CME are pointed higher. Trade CME from the long side and add on strength.
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: Commodities | Futures | Investing | Stocks | Technical Analysis | Financial Services | Mad Money | Real Money | Brokerages

More from Stocks

Warning: Watch for Bull Trap

James "Rev Shark" DePorre
Jun 30, 2022 4:32 PM EDT

After an ugly day of bear market trading, beware of what could hide ahead on Friday.

For This REIT It's All About That Base

Bruce Kamich
Jun 30, 2022 4:10 PM EDT

We're checking the charts and indicators on Ventas, owner of senior housing and medical facilities.

This ETF Boasts 'Inflation Protection,' but Will It Rise to the Occasion?

Mark Abssy
Jun 30, 2022 3:26 PM EDT

The Ionic Inflation Protection exchange-traded fund, the latest such ETF to hit the market, offers direct exposure to the consumer price index.

Want to Save Your Retirement Fund? Tune Out the Talking Heads

Jim Collins
Jun 30, 2022 3:14 PM EDT

The first half of this year has been ugly. But we could have seen what would happen to Netflix, Tesla and Meta...

National Health Investors Is Aging Well as It Emerges From a Base Formation

Bruce Kamich
Jun 30, 2022 2:16 PM EDT

Buyers of the shares are becoming more aggressive.

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

  • 07:59 PM EDT PAUL PRICE

    Very good quarterly numbers from Bassett Furniture (BSET)

    Bassett Furniture (BSET) blew right through analys...
  • 04:41 PM EDT PAUL PRICE

    First Half Results - Putrid Second Half Results - Likely to Be Much Better

    It's great that we're done with June. 2022 marked...
  • 04:51 PM EDT PAUL PRICE

    We Should Be in for Better Starting Soon

    Window dressing Thursday, the last day of the...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 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