Stocks This Week: Buy Owens Illinois And Terex


AP Photo/Seth Wenig

Copyright 2023 The Associated Press. All rights reserved.

The stock market may consolidate its gain this week, but the overall trend remains up. The following week is options expiration week, which has a bullish bias.

Here is the performance of the US markets since the October low. Note that the equally-weighted and the small-cap indices have been the leaders. The value index is outperforming the growth index.

Most stocks are rising.

Cycles Research Investments LLC

We scan the S&P 400 for buy candidates. The screen seeks stocks that are relatively strong and are approaching a favorable cyclical period.

Owens Illinois is at the top of the list. It is not only entering a more favorable period; it is also relatively strong. The first graph below shows that the stock has been strong in the first half of the year, but weak in the second half. The second chart paints a very favorable near-term view. Weekly, we see higher lows in momentum and relative strength. The share price has broken out of a three-year formation that projects a price in the mid-thirties. The monthly graph is constructive for the longer-term. A 14-year downtrend line has been broken to the upside supported by higher lows in momentum and relative strength.

Owens Illinois Annual Percentage Change

Most of the share price strength has occurred in the first half of the year.

Cycles Research Investments LLC

Owens Illinois Weekly

This is a bullish price setup.

Cycles Research Investments LLC

Owens Illinois Monthly

The monthly picture is also constructive.

Cycles Research Investments LLC

Terex TEX has risen 69% of the time from January 23rd to May 10th over the last 42 years. The histogram of expected return below shows that the first four months of any year have been strong. The weekly graph shows price strength. There are higher lows in momentum and relative strength as price nears the major $55 old high which is now resistance. This can be seen even more clearly in the monthly chart. The upturn in momentum indicates that price may break this barrier and run much higher. The $55 resistance is the target, and a break through that barrier projects a price in the mid-sixties.

Terex Monthly Histogram

This picture points to higher prices.

Cycles Research Investments LLC

Terex Monthly Graph

Momentum points to a break of the $55 level to a new recovery high.

Cycles Research Investments LLC

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