In its October 11th "Research Notes", The Napeague Letter noted that "I'd feel a lot better about GEHL's move today if there had been more volume and if its strength had been spread across the day, rather than being a brief phenomenon at the open. Currently, momentum-based indicators are signaling strength, but volume-based indicators are not signaling anything at all."
"This may have been the result of "morning enthusiasm" which died off as the day went on. A news flash just after the open read "Construction & Agriculture shares are mostly higher, led by CAT +1 1/4 to 57 7/8, CMI +3/16 to 6 7/8, and CTBC +5/32 to 6 7/8." As the day wore on, CAT and CTBC fell back off of these highs, although CMI held its ground."
"On the other hand, it could have been due to strong expectations about about the most recent quarter's earnings, which will be announced on October 20th. Well, anyway, over the last week GEHL has clearly bounced off of its support level around $16.75, so I suspect that it will not drop below this point unless earnings are disappointing."
The URL for the Napeague Letter web site can be found by clicking on the "Bob Davis", in blue, at the top of this posting.
Bob Davis
The Napeague Letter |
