This past week, I caught a nice breakout in CME group. The shares recently cleared 2+ year old resistance in the $85 area, stepping out into areas not seen the financial crisis in 2008.
Taking a longer term look at the stock, it had an IPO in early 2005 at about $45 per share. The stock went on to have a stellar ascent from there, trading as high as $142 at the high set in January of 2007, almost 2 years to the day from the IPO in 2005.
Then along came the financial crisis which hit the stock and hit it hard. The stock traded from the $142 area all the way down to a low of $31 set in January of 2009 almost 2 years to the day from the top set in 2007. Funny the way this stock tends to move in locks steps of 2 years, and always setting the high and low in January.From the low set in 2009, the stock has been on a slow and steady ascent. A quick look at the fundamentals in TC2000 show the move in the stock is well supported by expanding fundamentals. While earnings growth has flagged in the past few years, the multiple being paid for the shares seems to be expanding.
As for price levels, the chart above shows the $161% voodoo line at $90.79. We also have the 1.272% (purple) and 1.1618% (blue) extensions of the recent high to low swing. All 3 of these levels serve as short-term points of resistance if you are looking to flip out these positions for a short-term gain.
Long term I'm bullish on the shares as well as sister exchange CBOE which has better earnings growth due to explosive growth in trading of listed options.
Have a great week and ahead and as we enter the holiday season let me take this opportunity to thank my loyal blog readers and here's wishing you all new equity highs.
And of course don't forget to put aside some time to enjoy the fruits of your labors.
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