Buy Best Buy And Short Mattel

Photocredit: © 2019 Bloomberg Finance LP© 2019 Bloomberg Finance LP

The next week is the week after option expiration. The S&P 500 has historically declined in such weeks in March , especially if the week follows a triple-witching expiration. The average loss from 1985 has been 0.7%. There is a projected turning point (PTP) on the 20th, likely a high. The next PTP is on the 25th, likely a low.

The Best Buy weekly cycle bottoms now and rises into the last day of the month. In the last year, all of the 8 buy signals have been profitable. Relative strength is strong and momentum is constructive. The stock could reach $75.

Chart 1

The weekly cycle points to higher prices.Cycles Research Invesments LLC

Chart 2

Relative strength and momentum are constructive.Cycles Research Invesments LLC

If the S&P makes a short-term top on the 20th as projected, then Mattel is a shorting candidate. The weekly cycle for this stock tops on the 20th. The stock is likely to decline from the close on the 19th through the close on the 22nd. The shares are likely to fall to $12.

Chart 3

This weekly cycle tops on the 20th.Cycles Research Invesments LLC

Chart 4

The stock may retreat to $12.Cycles Research Invesments LLC


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