Sometimes its amazing how the market can change over a weekend, which is one of the reasons that we often hold off on adding new positions on Friday afternoons. This weekend’s news cycle focused heavily on the tax reform bill pressing through Congress resulting in this morning’s strong reversal of Friday’s selling spree.
Over the short-term, we expect the news to carry stocks higher except for some of the technology sectors. Today’s Three Big Stock Charts looks at Bank of America Corp (NYSE:BAC), Bristol-Myers Squibb Co (NYSE:BMY) and Advance Auto Parts, Inc. (NYSE:AAP). All three of the companies are breking into volatility rallies that should carry them higher into the New Year.
Bank of America Corp (BAC)
BMY) /p pimg loading="lazy" class="alignnone size-full wp-image-1078814" src="https://investorplace.com/wp-content/uploads/2017/12/171204-BMY-Daily.png" alt="" width="700" height="530" srcset="https://investorplace.com/wp-content/uploads/2017/12/171204-BMY-Daily.png 700w, a href="https://investorplace.com/wp-content/uploads/2017/12/171204-BMY-Daily-300x227.png"investorplace.com/wp-content/uploads/2017/12/171204-BMY-Daily-300×227.png/a 300w, a href="https://investorplace.com/wp-content/uploads/2017/12/171204-BMY-Daily-40x30.png"investorplace.com/wp-content/uploads/2017/12/171204-BMY-Daily-40×30.png/a 40w, a href="https://investorplace.com/wp-content/uploads/2017/12/171204-BMY-Daily-200x151.png"investorplace.com/wp-content/uploads/2017/12/171204-BMY-Daily-200×151.png/a 200w, a href="https://investorplace.com/wp-content/uploads/2017/12/171204-BMY-Daily-396x300.png"investorplace.com/wp-content/uploads/2017/12/171204-BMY-Daily-396×300.png/a 396w, a href="https://investorplace.com/wp-content/uploads/2017/12/171204-BMY-Daily-116x88.png"investorplace.com/wp-content/uploads/2017/12/171204-BMY-Daily-116×88.png/a 116w, a href="https://investorplace.com/wp-content/uploads/2017/12/171204-BMY-Daily-100x76.png"investorplace.com/wp-content/uploads/2017/12/171204-BMY-Daily-100×76.png/a 100w, a href="https://investorplace.com/wp-content/uploads/2017/12/171204-BMY-Daily-165x125.png"investorplace.com/wp-content/uploads/2017/12/171204-BMY-Daily-165×125.png/a 165w, a href="https://investorplace.com/wp-content/uploads/2017/12/171204-BMY-Daily-66x50.png"investorplace.com/wp-content/uploads/2017/12/171204-BMY-Daily-66×50.png/a 66w,https://investorplace.com/wp-content/uploads/2017/12/171204-BMY-Daily-78×59.png 78w, a href="https://investorplace.com/wp-content/uploads/2017/12/171204-BMY-Daily-158x120.png"investorplace.com/wp-content/uploads/2017/12/171204-BMY-Daily-158×120.png/a 158w” sizes=”(max-width: 700px) 100vw, 700px” />
Technology and pharmaceutical stocks have been lagging the market of late, but there are some stocks within those group that are presenting themselves as opportunities — like Bristol-Myers Squibb. After spending some time consolidating, the shares are ready to move higher with the market.
Shares just crossed back above their 50-day moving average over the last week of trading as Bristol-Myers Squibb shares are gaining technical traction. We should see the trend of the 50-day turn bullish as it transitions into an ascending pattern. The Chande Trend Meter just moved into bullish signal territory last week as the readings broke above 70. This indicates that the stock is beginning to gain positive momentum as its trend improves. Like a number of other companies, Bristol-Myers Squibb shares broke above their top Bollinger Band over the last week and are resuming this activity today. This suggests that a volatility rally is preparing to carry shares higher on increased volume. Advance Auto Parts, Inc. (AAP)