Coverage of the shares of this motorcycle manufacturer have been initiated and upgraded by three brokerage houses.
Harley-Davidson, Inc. (HOG)
From Shortex Market Letter
Rotation warning signs: hedge fund, institutionals, High Frequency Traders (HFTs) and investors/traders have a wish list to exploit. They are reluctant to buy at higher prices finding their market timing at inopportune moments. Rebalancing such stock portfolios may have its pitfalls from outperforming to underperforming. The main culprit of this rotation is none other than “naked short-selling” where HFT’s, hedge funds, arbitrages and market makers are utilizing “stub quotes”. Note that major indices are enjoying record closing levels.
The Dow Jones Industrial (^DJI) established 22 record highs, while the S&P 500 (^GSPC) 25 record highs so far in 2021. This is certainly a reason for the market’s ascension with the acceleration in corporate profits.
Arms Index (Short-term trading index) hovering at (0.83-0.96) for both the NASDAQ and NYSE. Market Pulse: The Arms Index (short-term trading index) /TRIN/is hovering at (0.86-1.09) for both the “NSDAQ” and “NYSE”. Market pulse: positive technical patterns overwhelm event driven dilemma. Covid-19 and the vaccine rollout has created a new economy augmented by the momentum of Bitcoin as a derivative of the digital currency. The technical picture has been brightened overall and amplified by major indices making new highs barring a necessary retraction/correction. Investors/traders are redefining their strategy of “risk reversal” despite the naysayers and the bear alarms with further “bubbles”.
Major indices are set to continue ascending subject to the fundamentals of triple E’s (earnings, earnings, earnings) based on expected P/E on the major indices with replacement earnings.
Recommendation:
Harley Davidson
52wk H. 50.67 52wk L. 17.80
Mkt Cap: $7.33B, EPS: 1.24, P/E:, 38.50 Beta: 1.50,
The motorcycle manufacturer’s current March quarter earnings of $1.68/shr up 200%+ surprised the analysts. Demand for motor bikes is running its factories at full capacity. Erratic chart pattern since Dec ;20. Surge in price movement appeared in its reversal in April ’20: (33-35) to (36-38), gapping up (38-40) with an upped-gap (42-44) to new high of 50.67
BUYING RANGE: 44-50
NR TERM OBJ: 61
INTERMED OBJ: 78
STOP LOSS: 38
Joseph Parnes, Shortex Market Letter, shortex.com, 800-877-6555, May 6, 2021