For years market analysts have been looked at the history and chart books to see how the stock market performs under Republican or Democratic presidents. Others have drilled down to see how stocks perform in each of the years in office.
Recently, I took a look at the Hillary Clinton stock portfolio put together by TheStreet. It is hard or maybe impossible to divine what a stock might do from late January 2017 forward so I selected five stocks from the 15, whose charts look good now.
In this daily chart of Aecom, we can see a strong chart with a lot of technical promise. There is a January/February bottom and quick rally over the 50-day and 200-day moving averages. There is a golden cross of the 50-day and 200-day in April and prices are still above both rising moving averages.
The OBV line turned up with the price action in February and it has made a new high for the move up along with the price action. A rising OBV line tells us that buyers of ACM have been more aggressive than the sellers with the number of shares traded being heavier or bigger on days when ACM has closed higher. In the bottom panel there are no bearish divergences right now.
This chart of L-3 Communications is impressive. The November-January pullback was a little scary and unnerving for the longs, but prices rebounded and then consolidated in February and March before blasting higher in April.
The OBV lead the way by its rise beginning in late January. Prices have made three pushes up to new highs in May, June and July but the momentum study has made lower highs telling us that the rally is running out of steam. The OBV line has leveled off the past two months. Another period of sideways consolidation is probably ahead for LLL before another markup phase.
American Electric Power has been trending higher the past 12 months and I would anticipate that uptrend persist. Prices are above the rising 50-day and 200-day moving averages.
The OBV line has been moving smoothly higher the entire time. Momentum is not diverging from the price action. AEP has done well and is likely to continue to do well in the months ahead.
Smith & Wesson has been in an uptrend the past 12 months. If you stayed long, in tune with the rising 200-day moving average, you would have done well. Corrections in January and April may have weakened your resolve, but the OBV line has seen a pretty steady rise since December.
SWHC could continue its price rise as Second Amendment rights will probably continue to be a hot topic leading up to the election.
Tyson Foods has made a strong upside move the past 12 months and looks like it is on its way to being a double for buyers in August and September. The moving averages are in a bullish configuration and the rising OBV line has confirmed the advance. Momentum is not diverging from the bullish price action. TSN looks strong as long as we don't decline below $65.