Sometimes in this space we discuss individual stocks. Mainly due to technical considerations, but obviously, if I were not “top-down” constructive on a market or a sector I would likely not mention it. Chart patterns often fail, eh?
But in the case where I am positive on the US stock market (over the course of 2026) and at least neutral+ on the Materials sector, here we stare at the chart of old friend CBT, a Specialty Materials company.
I checked it out, saw the base (not activated), a big daddy Inverted H&S and a baby Inverted H&S and thought, okay I’ll give it a try (again). A safer bet is to wait for a break above 81, but I bought here at 77.60. I will use the 50 and 200 day moving averages (blue/orange) as a caution zone.
A successful break above 81 would measure out to the 103 area, about 28% above the would-be breakout point. For its part, the little pattern would measure to 89.
Earnings are upcoming. That could be the driver to break it up and out, or see it fail.
As a side note, my cash/equivalents levels are getting lower than I’d like, considering the man who told us the war ended 2 months ago is liable to say anything at any time. So I am trying to find a couple items to sell to accommodate ‘diversity’ items like CBT (and a new global bottom feed also added this morning, GRAB).
I “think” we go bullish, but I am a risk manager first, foremost and always.
NFTRH+ trade setup ideas are presented for consideration and further research only, not as recommendations. I may or may not personally take positions in all or even most NFTRH+ ideas, as it would depend on my portfolio composition at any given time. “Stop loss” and target levels are usually noted and should be respected.
