U.S. Footwear Stocks: The Perfect Uptrend

If anything U.S. footwear stocks are in a perfect uptrend. One of the top 5 stocks we forecast for 2019 was Nike (NKE), no coincidence that it is part of the U.S. footwear stocks index. Having a portion of a portfolio in long term momentum trends, low risk with a relatively high reward, is an important thing.

We may be spending quite some time on InvestingHaven.com finding the next explosive uptrend but we should never forget that a portion of everyone’s portfolio should sit in safety investments as well. The perfect uptrend is there in U.S. footwear stocks.

As said in one of our investing tips for successful investors, as per Warren Buffett’s investing principles:

Warren Buffett’s most important investing principle: ‘Rule number 1: Never lose money. Rule number 2: Never forget rule number 1.’

And it looks like this index is moving higher in 2019 and beyond. The chart pattern on the monthly chart is what we need for this type of conclusion. The highest time frame reveals the most reliable dominant pattern which is one of the mandatory steps in any investing decisions making process.

No coincidence, Nike’s stock price has shown strength in a similar fashion. Even financial media is positive on Nike’s stock price, which we consider the bellwether stock among U.S. footwear stocks. Foot Locker’s stock price (FL) another bellwether footwear stock fell on its earnings report but got buy ratings from analysts.

Interesting additional insight: Even during the previous stock market crashes the U.S. footwear stock index sector did hold up very well. So this is to some extent also a hedge against a stock market crash.

This index now moves from the bottom of its long term rising channel. Presumably this moves now to the top of its channel. It now trades at all-time highs. There is no resistance on its chart.

We see this index moving higher in 2019 and beyond.

US footwear stocks

Disclaimer: InvestingHaven.com makes every effort to ensure that the information provided is complete, correct, accurate and ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Carl Schwartz 2 months ago Member's comment

Could be true but it certainly didn't help Payless!