So, what now? I'm wondering if GE could be entering another cycle as the S&P appears to be finishing out one. In other words, could these two tickers prices flip and diverge opposite again? Let's look at some details below to help us analyze.
1) Technically, there's massive forming on the for GE . Inversely, I see massive divergence on the S&P chart (see my profile for this chart idea).
2) Fundamentally, we've seen several consistent years of bad financial news coming from the conglomerate all the while there's been a concerted effort turn things around within the company (i.e. leadership changes, selling off businesses to pay down debts, layoffs, focusing on Aviation, etc. ). It is just recently that we're now seeing positive signs from the company once again. New contracts, debt reduction efforts, FDA approvals in healthcare, etc.. So, could GE be reaching the end of the negative news cycle?
3) Given that FAANG stocks are grossly over valued and major indices are teetering at nosebleed levels... will traders begin seeking cheaper opportunities/hedges in reputable household names. Specifically, would a conglomerate type such as GE be a good investment if there is market uncertainty or worse, decline in the near future?
Time will tell!
NOTE: Not trading or investment advice. Entertainment only.