Where was supervisory analyst when Goldman Sachs sent out a report on 16 stocks to sell? Everyone knows that Wall Street only wants you to buy stocks.
Is there a cynical emoji? Really? There are thousands of stock market books about when to buy, but I think I can count on one hand the number of books that I know that have been written about when to sell.
I looked through the 16 names that Goldman Sachs said to jettison and found four I definitely agree with at this point in time. Let's take a closer look at their stock charts.
In this daily chart of Boeing(BA) - Get Report , above, we can see that the stock rallied from a February low but that rallies over the past four months have failed around the declining 200-day moving average line. Volume has not really expanded as prices lifted up from their February nadir, and the on-balance-volume, or OBV, line is not showing itself to be a leading indicator. There is a bearish divergence in March and April as prices made a higher high, but the momentum study made a lower high, and the OBV line made only an equal high.
Boeing will need to push more than halfway through the November/December resistance area to turn me bullish. A decline below $124 is likely to embolden the bears.
Looking at this daily chart of Ecolab(ECL) - Get Report , above, you might ask me why I am bearish. Ecolab is in an uptrend, above the rising 200-day moving average and above the rising 50-day. The OBV line has stair-stepped higher since September.
Why be negative? Ecolab has had a real problem with holding on to gains above the $120 level. Rallies failed in October and November and June. Senior stock market averages made new highs on Monday, but ECL didn't. This isn't a rush-out-and-sell signal, but this weak relative performance tells us that Ecolab is not a stock that is going to outperform the averages.
A close below $114 should weaken the chart still further.
Monsanto (MON) had a big upward readjustment in May, soaring from $90 to over $110. Despite the price gaps and volume surge, the OBV line only saw a small rise in May, suggesting little accumulation. After a spike to over $114 in June, Monsanto has retreated to around $100, with the OBV following the price action lower.
Certainly company-specific news could take Monsanto higher, but right now I see a stock chart that looks more like a sell than a buy.
The last stock that I would agree with Goldman Sachs is a sell is Owens-Illinois(OI) - Get Report . The daily chart of OI, above, shows most of the indicators to be bullish until recently. In May and June, the rally from the January/February low stalled at the underside of the $20-to-$24 resistance zone from late 2015. Prices have broken below the 50-day and 200-day moving averages. There are higher highs in May and June, and the momentum study makes a lower high for a bearish divergence. So despite the rally earlier this year, OI is not a name I want on my current buy list.