Photographer: Michael Nagle/Bloomberg
The market is likely to retrace some losses this week. The selling is expected to resume in September. On the 28th, the 1.88-year cycle tops, adding to the usual September weakness. The selling is likely to be concentrated in the big tech leaders. Here are a pair of recommendations.
The Honeywell weekly cycle below has been accurate in eight of the last ten signals. It appears that the shares will fall into the end of August. Relative strength has hit its lowest level since 2013. September has been the weakest month to hold the stock, up 37% of the time for a loss of about 3%. Honeywell is likely to fall closer to $175.
Honeywell-Weekly Cycle
The price downtrend is likely to accelerate as this accurate cycle turns down.
Honeywell-Monthly Histogram
The weak seasonality is evident in the histogram below.
PayPal is one of the weaker stocks in the NASDAQ
NDAQ
PayPal Monthly Cycle
This cycle is likely to further depress the share price.
PayPal Daily Graph
Relative strength is likely to extend its drop.
Source: https://www.forbes.com/sites/greatspeculations/2023/08/21/stocks-this-week-sell-short-honeywell-and-paypal/