HOG - approaching 3 year bullish trend line

With the equity market unravelling along with the biggest (flop?) ipo in FB and troubles continuing to boil over in Europe, broad based selling of anything with a symbol continues. Stocks, indices, ETFs, etc are breaking below their major moving averages on a daily basis and formerly loved stocks such as AAPL exhibit sell-rallies mentality just like all the rest of the mortal stocks. But when the dust settles, be it at 1280, 1250, or some other equally painful level, the stocks that will lead on the way up are the ones that have held up relatively well on the way down, or the ones holding their long term bullish trend lines. One such stock is HOG.

I am no fan of motorcycles per se but you can't argue the picture below. From its 2009 lows HOG has been in a strong uptrend that has yet to be broken. Yes there has been volatility on its path higher and its major moving averages have provided nice swings to the upside and downside. But overall the stock has held its bullish trend line exceptionally well. This is the type of stock that should be on someones buy list when it gets close to its trend line. Dipping a toe in near its 200day moving average probably won't hurt. After all the 200day and the bullish trendline are so close - but as you can see it has broken below many times over the past few years so be careful.

I could have spent this post talking about which stocks to play from the sell side but there are just too many. We remain in sell the rallies mode until that trend is broken, but we are approaching oversold levels that have not been seen in a while and people should be dusting off their shopping list. The trend has yet to change to bullish (thats for sure!). When it shows signs that it may, you just need to be prepared.