Time To Sell Fertilizer, Oil Stocks? Others In IBD 50 Offer Opportunities

The market is struggling and has taken some of the IBD 50 stocks down with it. CF Industries (CF) and some of the oil stocks have hit 7% to 8% sell signals. Among consumer stocks, Lululemon (LULU) and Ulta Beauty (ULTA) are uncertain.

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Lululemon Athletica is new to the IBD 50. It has not yet formed a clear pattern, but is trading above its 50-day line and slightly above its 200-day moving average, according to MarketSmith.

It has a rising Relative Strength Rating of 84 and is an IBD Sector Leader. It also beat analysts’ earnings and sales estimates when it reported its July-quarter earnings on Sept. 1. If the economy slows, however, it would be a risk for the company.

Ulta Beauty Struggles To Climb

Ulta Beauty first hit its buy point of 417.08 on Aug. 16 off a double-bottom base. Since then it has risen and fallen within its buy range. On Friday, it had fallen back near the buy point after a four-day slide.

Although it is trading both above its 50-day and 200-day moving averages and shows no sell signal, it’s another stock sputtering.

The cosmetics leader topped Q2 earnings and sales estimates last month. Ulta Beauty is the largest beauty retailer in the U.S., with more than 1,300 stores nationwide.

The health care sector offers better opportunities, although a weak stock market works against stock buyers.

Health care staffing company Cross Country Healthcare (CCRN) was volatile after topping a 27.87 entry but rebounded and is near highs.

Fitness beverage maker Celsius (CELH), which is in IBD’s beverages industry group, found support at its 50-day line. Medical products maker Repligen (RGEN) may form a base with continued steady price action. And Agilon Health (AGL) is climbing the right side of a cup base with a 28.46 buy point.

Some Fertilizers, Oil Stocks Hit Sell Signals

Fertilizer stock CF Industries has triggered the 7%-8% sell rule and dipped below its 50-day line Friday. The stock had soared in the weeks after Russia invaded Ukraine, but with this week’s war gains by Ukraine fertilizer stocks are seeing a reduction in supply shocks.

New Fortress Energy (NFE) dipped more than 9% on Friday, and was below its 50-day moving average. The stock wiped out a 20% gain from its 52.47 entry, resulting in a round-trip sell signal.

Coterra Energy (CTRA) fell about 7% Friday and dipped below its 50-day moving average. It is still forming a base. Fertilizer company Mosaic (MOS) on Friday traded below its 50-day line.

Follow Michael Molinski on Twitter @IMmolinski

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