Chart Courtesy of StockCharts.com
Shares of industrial giants General Electric (NYSE: GE) and 3-M (NYSE: MMM) have bounced off of their lows, but are nowhere near chart patterns that suggest economic growth is near.
Chart Courtesy of StockCharts.com
GDP results, out today, may show that the U.S. economy is improving, although forecasts are for further erosion. Yet, the markets are suggesting that although the worst may be over for now, the economy is faring no better than muddling through.
GE and 3-M are huge conglomerates, whose sales, revenues, and profits usually correlate well with the overall global economy and trader perceptions of economic fundamentals. And the charts suggest that big growth is not in the cards right now.
As of 5-27, OIH was more dependent on the overall trend of the stock market, pulling back when stocks fell, rather than going along with rising crude prices.
What is good is that both stocks have bottomed, suggesting that some level of confidence has returned. Yet, the lack of a steady climb in the last two weeks suggests that doubt is creeping back in.
For GE, a move above 14 would be a good sign. For 3-M, a rally above 60 would suggest that confidence is starting to build.
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