Chartz with Jartz - The Investment Management Team (IMT) has been rebalancing accounts over the last two weeks as the summer winds down. With another volatile earnings season coming to an end, the IMT was able to incorporate buying and selling during the weeks leading into the rebalance. One security in particular, Walgreens Boots Alliance, Inc (WBA), has been on our radar. On July 1st, WBA reported an EPS better than expectations and revenues in line with guidance; unfortunately the stock saw a 7% drop on the day and continued a decline for the following two weeks.
Based on fundamental and technical analysis, the IMT believed the security was over sold. In the Chart above, you can see the Relative Strength Index (RSI) dip below 30, which is considered oversold. Instead of being aggressive to buy, the IMT waited for the pattern to reverse and confirm the end of the downward move. After buying the security multiple times from $45 a share to around $48 a share, the IMT has built a position in WBA across multiple Strategic and MVP portfolios. Yesterday, the stock saw one of its largest intra day jumps, since July, moving up 4% and breaking through the moving average lines. With higher than normal volume, we believe WBA has confirmed its reversal and we will continue to monitor for further signals. For more updates on holdings and portfolios please tune into our blog every Wednesday.