Tom Anderson, chief investment officer at Boston Private, was interviewed by our own Gregg Greenberg on Wednesday, and Anderson highlighted four large-cap stocks that looked like they could rebound -- Home Depot (HD) , Celgene (CELG) , Charles Schwab (SCHW) and Allergan (AGN) .
While I believe the broad stock market will make an important low sometime between now and Thanksgiving, that does not mean that these names are at a low, and whether they can in fact bounce back ... Let's look at them one by one.
In the 12-month daily bar chart of HD above, we can see a stock chart that has rolled over this year. We had a rally from a February low that rolled over in April/May followed by another push up that stalled out in July/August. Prices have declined to break the June lows and establish a downtrend from August. The slope is negative for both the 50-day and the 200-day moving averages. The daily on-balance volume line has marched lower all year and tells us that sellers of shares of HD have been more aggressive than buyers, with the volume of shares traded on down days often being heavier than the volume on up days. One bright spot on the chart is a September/November bullish divergence between lower lows in price and a higher low (so far) from the 12-day momentum study in the bottom panel.