by Shane Ormond
On May 21, 2020
Target reported that online sales on an average day in April exceeded last year’s Cyber-Monday sale, because if you’re not going to buy a Cuisinart Perfectemp 14 Cup Programmable Coffee Maker at the end of the world, when are you gunna buy one?
Welcome to our first Chart of the Day.
Just to refresh your memory…
Since you signed up for my One Trade Away Challenge event, you’ll be receiving this completely free benefit.
Chart of the Day is a very special e-letter. It’s a great companion to the PowerTrend Options trading service. But it also stands alone as its own powerful resource.
You see, if you ever wondered how technical indicators impact a stock’s trajectory, but didn’t know where to start, this free e-letter is for you.
Each day, I pinpoint a certain indicator that’s about to trigger movement in a stock or ETF. Then I send you a quick email blast that reveals what I found.
I show you the stock’s chart… identify the indicator I spotted… and explain if the stock will likely go up or down based on my analysis.
Once you begin receiving my daily snapshots, you’ll quickly see how these same indicators led me to win 10 trading championships over the last 35 years.
So let’s get right into it.
Today’s Chart of the Day is a 10-Month Simple Moving Average chart for TJX Companies, Inc. (NYSE: TJX).
The TJX Companies, Inc. operates as an off-price apparel and home fashions retailer.
It operates through many segments: TJ Maxx, TK Maxx in Europe, Marmaxx, HomeGoods, TJX Canada, and Marshalls. The company sells family apparel, home basics (like furniture, rugs, lighting products, decorative accessories, tabletop, and cookware,) as well as expanded pet, kids, gourmet food departments, and other merchandise.
Now, below is a 10-Month Simple Moving Average chart for TJX Companies.
Back in June, the TJX 1-Month moving-average crossed above the 10-Month simple moving-average (SMA) indicating TJX is on a PowerTrend ‘buy’ signal (circled).
Guess what happened next…
Sure enough, prices continued to climb.
If you had purchased TJX shares when the PowerTrend ‘buy’ signal occurred for the stock back in June, when the stock was around $52.50, you’d be up 10.8% by now.
Not a bad profit for a 5-month hold of a major retailer.
Now, as you can see, the 1-Month moving-average is still above the 10-month SMA. That means the bullish trend is still in play!
As long as the 1-Month Price remains above the 10-month SMA, the stock is more likely to keep trading at new highs in the coming days and weeks.
We’ll be keeping our eye on this stock as it continues to trend upward so we’ll know the moment the market conditions shift and the stock begins to come back down.