Keystone uses the 20/50-week MA cross on UPS as a key market and economic signal. After stocks crashed in Q4 2018, the 20 stabs down through the 50 signaling a cyclical bear market ahead. UPS collapsed. The delivery guys, who are stock holders, watching the price collapse, wore brown shorts at the end of last year. The cyclical bear remained in place until last week with the 20 now creeping back above the 50 signaling the return of the cyclical bull market. Of course, since the cross just occurred, and the moving averages are very flat-profiled, the cross may be tentative. Nonetheless, this is a major win for bulls so keep an eye on it over the next few weeks.
The UPS and FDX shipping giants are global bellwethers for the stock market and economy. If parts, products, contracts and such are being shipped back and forth between companies like gangbusters, the shipping companies are in their glory making big bucks and raising prices. If the economy begins slowing, however, and companies are not willing to strike deals, and sales slow so less items are shipped, a gloom will come over the economy and send the 20 MA below the 50 MA.
The 20 remains below the 50 for FDX but Keystone's cyclical signal is based on United Parcel and not FedEx. Amazon is a new player in the shipping arena. King Bezos wants to muscle UPS and FDX out of the picture and eventually take over the delivery of all their products themselves. AMZN continues to disrupt many industries. Only the most innovative managements survive the wrath of King Bezos. 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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