Delivery Status:
Some notable names in the industrial arena reported earnings yesterday and for many, it was simply business as usual. The most high-profile name was UPS and it “delivered” its 8th negative PRICE reaction in its last 10. It slumped 12% and is now 33% off its most recent 52-week highs and has now been making lower highs since February 2022. This looks like it wants to at least test the MONTHLY double-bottom breakout near 110 from July 2020, and it is now well below the big overall market rebound from last October. Both of its 50 and 200-day SMAs are sloping lower, the latter for one year now which truly shows the secular trend. It brings up the age-old question is this a function of poor management, or is it speaking of weakness in the overall economy? Or is it a function of AMZN simply imposing its will in the delivery services space? The same “issues” plaguing UPS do not seem to be affecting FDX, although it does feel a bit heavy just above the very round 300 number. This name is only 4% off its annual peak, excellent relative strength compared to UPS a third off its own. PCAR and AOS also crumbled Tuesday after REPORTING and falling to the tune of 10%, and each unraveling recent double-bottom breakouts.