The price crossed below the 40-week MA on the prior downturn, which would have signified the end of the prior Stage 2, or a continuation of a Stage 1. Either way, the subsequent run went over 160% in about 20 weeks which crossed back above the 40 week and has held since. Therefore, I see that run up as the beginning of a new Stage 2. It is currently in a large Base 1 which is digesting those gains.
The prior 4 quarters showed nice QoQ EPS growth, but the acceleration has been slowing. During that time the margins have been in and out of profitability. Even though the financials seem to be weakening, the earnings drift after last quarter has been strong. Their last quarter was their weakest in the past four. The initial reaction was a sharp move down, but it quickly recovered and has maintained that higher ground.
The RS is a strong 76.68% above the Materials sector, but the sector is only 9.08% above the SPX. Today the DOW lost around 350 points after losing almost 500 the day before. Needless to say, there was a lot of red in the markets today, but ATI was up a solid 2.5% considering the rest of the market. The VCP is looking good with that last contraction being under 10%, but the final ingredient will be a pivot volume day. If I can get that I’ll likely place an order.