Fairlead Strategies Idea Generator
CMS Energy (CMS) & Updates (GLD, GRIN, HSIC, MSFT, NCNO, NEM)
Due to the market’s volatility, we have plenty of updates on our ideas:
We recommend locking in profits in Newmont (NEM), which has exceeded our target.
We are adjusting the stop-loss level for nCino (NCNO) in order to ~$45 to give it more room to work.
We are willing to give Microsoft (MSFT) another day to recover, as well. One more close below our stop-loss near $281 would be an impetus to close out positions.
We recommend tightening stop-losses in SPDR Gold Shares (GLD) to $178 from $169 and in Henry Schein (HSIC) to $84.50 from $82.00.
Lastly, we are removing Grindrod Shipping (GRIN) from our recommendations because it closed 1.7% below our stop-loss.
For our newest idea, we recommend a defensive utility stock, CMS Energy (CMS):
CMS is breaking out above resistance going back to April 2021 in a bullish long-term development. The breakout is associated with a long-term shift in momentum, denoted by a monthly MACD "buy” signal (not shown).
Our intermediate-term gauges support upside follow-through, noting momentum is positive per the weekly MACD, and the weekly stochastics have a bullish “pop” that tends to see upside follow-through.
CMS, like many other utilities, has seen its ratio versus the S&P 500 Index clear its 200-day moving average decisively, suggesting it will continue to outperform in the current high-volatility cycle.
We recommend placing a stop-loss below the 50-day (~10-week) moving average near $64. Targeted resistance can be gauged by a long-term measured move projection of roughly ~$75.
CMS Energy (CMS, $66.98)
Target: $75
Stop-Loss: $64