For his second "Executive Decision" segment of Monday night's Mad Money program, Jim Cramer spoke with Lee Olesky, co-founder and CEO of Tradeweb Markets (TW) , the digital bond trading platform.
Olesky explained that Tradeweb was the first company to allow institutions to trade U.S. Treasuries over the Internet. Since then, the company has been adding asset classes and expanding its reach to traders around the globe.
In today's market, Olesky said that collaborative innovation is key, which is why the company works closely with customers to build new software that allows them to trade more easily.
Olesky said the Tradeweb advantage is its diverse offerings. The company's average daily volume is just under $1 billion, he said, across many different asset classes and markets.
Let's check out the charts and indicators of TW.
In this daily bar chart of TW, below, we can see that prices bottomed out in July-August-September before rallying to the upside. Prices are trading above the rising 50-day moving average line and above the slower-to-react 200-day line.
The On-Balance-Volume (OBV) line shows a bullish rise from early December as traders became more aggressive buyers of TW.
The Moving Average Convergence Divergence (MACD) oscillator has been weak since March but now looks in position for a turn higher and an outright buy signal.
In this weekly Japanese candlestick chart of TW, below, we see a picture that is neutral. There is a bearish engulfing pattern at the beginning of May but the next week's candle did not confirm the pattern. Prices may weaken however. The slope of the 40-week moving average line is positive.
The weekly OBV line shows a rising pattern the past two years as traders and investors have been aggressive buyers. The MACD oscillator is ready to cross to the downside for a take profits sell signal.
In this daily Point and Figure chart of TW, below, we can see a potential downside price target in the $74 area.
In this weekly Point and Figure chart of TW, below, we see that the software is projecting the $102 area as a potential price objective.
Bottom line strategy: The charts and indicators for TW suggest we may have a pullback in the short-run but still higher prices in the long-run. Traders looking to go long TW should wait for a downward correction to unfold before probing the long side.
