Tuesday, May 16, 2017

UPS United Parcel Service Weekly Chart with 20/50 MA Cross; Negative Market Signal

One of Keystone's key intermediate term stock market signals is the 20 and 50-week MA cross for UPS. UPS and FDX are shipping giants that serve as global bellwethers for the stock market. When times are booming, parts, contracts and packages are flying back and forth via United Parcel Service generating big profits for the shipper. When consumers spend money, nowadays it is Amazon that benefits, and those products are shipped by the men and ladies in brown short pants. Robust activity at UPS verifies a healthy and strong economy; or visa versa if UPS falters.

The 20-week MA crosses down through the 50-week MA for UPS a negative market signal. This portends weak stock markets and a weak economy going forward.

Note the soft period in 2015 but the cross would not stay negative. That told you that the stock market would recover after the early 2016 selloff, and it did. UPS rallied big last year as everyone believes the global economy is reinflating and accelerating. The 20/50 cross remains positive signaling party times ahead for bulls. Until now. The punch bowl appears to have gone dry and people are passed out on the couch and floor. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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