The stock market has been a very wobbly since late September. These four payment system stocks have held up very well in this volatile period. All of them have pulled back around the 200-day moving average but have found solid support there. Look at them closely to see if they fit into your portfolio as the market has started to buy growth stocks over the last few days. It looks like you have a nice place to buy them here with strong stop locations.
The first is Square. I was at a snack shack yesterday and they were using a pen pressing a carbon imprint for a credit card at a Hilton hotel property. Seriously, in 2018, rubbing credit cards? Someone should send them an application to use Square!
The chart looks excellent. We can see a pullback of 30% off the highs but the stock continues to find support at $70. The PPO is making a higher low while price was at the old low. This positive divergence is exactly what we want to look for. Any break of this downtrend on the PPO, suggests this price is turning higher. It is important that the relative strength on the shaded area does not make new lows.
PayPal (PYPLWealth Strength IndexAAPL is Extremely Up and trending Up)
The next stock is PayPal. The stock dipped below the 200-day moving average in early October. Since then the stock has been making higher highs and lows. Thursday had the highest volume in November with 10 million shares traded. There was also a huge positive volume spike on the major earnings surge October 18. There are some buyers stepping up. The stock has consolidated sideways for six months. Looking in the zoom panel, the big move today also turned up the momentum indicator while above zero. All of this adds up to a stock looking ready to power higher and a tight stop under the $83.07 low in case of some unexpected move down now. As an aside, PayPal recently signed an agreement with Wal-Mart.
Mastercard has been a big gainer over the years. This little pullback heading into the retail season looks fine. Currently the price is about $25 off the highs. The relative strength shows the stock holding about the same as the $SPX for the last 7 months. It needs to resume the relative strength uptrend. A wide stop under the $190 level should allow for some wiggle but capture the uptrend in this favorable seasonality.
Lastly, Visa (V) looks ready to run too. The stock continued to make new relative strength highs today. The stock pulled back $20 but it has already recovered half of that. The PPO looks ready to surge into positive territory where it has spent most of the last 1.5 years!
Together, all of these stocks look ready to continue their uptrends. Looking across the industry and seeing all the charts set up bullishly is a nice investing backdrop.
If you want to check out my latest 30-minute video on why I think the mood is turning to growth stocks, click on this link. The Final Bar with Greg Schnell.