Hubert Senters here.
Had a question from Tony Warren. If you could break down a good time to buy and go long MMM. Thanks in advance. Thanks in advance. Alright, Tony let’s take a look at, MMM. So first and foremost any time you’re trying to figure out any of this craziness called speculation.
You kind of figure out which way the futures markets are going first so yours is traded on the NYSE. I would just look at Dow, S&P wouldn’t really worry about the Nasdaq markets it shouldn’t affect 3M much. So first I would look at ES and ES is a good barometer of what’s going on so let’s just go at ES.
So the S&P is below the cloud selling off kind of a weak mounts and it’s probably going to roll back over. Let’s take a look at the Dow at YM. The Dow, a little bit stronger but still below the cloud so I would say MMM is probably going to be in a depression not a depression. It’s still going to be weak because of those two markets below the cloud so MMM hit that so.
Now, I’ve got a good idea of what this thing will probably do because usually the futures leading the broader market. So in this situation, you have got a nasty little gap now. First is do a little bit of homework on this thing technically wise and see if it’s just having a bad month, a bad year or bad, you know, decade. Overall, it’s been a solid sell ever since February of what was that of this year so it’s not too bad.
I mean it’s had a bad year. I mean it broke below the cloud here, sold off. You see this gap right there. I don’t like those things. Those things freaked me out a bit. Those are usually signs of more weakness to come gap down and consolidation. The consolidation worked its way a little bit higher and then gap down consolidation.
So for me I wouldn’t touch it with a ten foot pole right now. Not to say that it’s not a great buy at a discount but if you held a gun to my head I would say here’s what I would do Tony, I would wait until it closed above the cloud and it have to be up there for three to five days before I would touch it. That’s what I would personally do and I know it may be different than what you may do or somebody else wants to hear but that’s how I would play it since the market is still in down mode and instead up mode.
I’d stay away from them because it’s just a little bit weaker overall. And even when the market was in up mode this thing really didn’t do great, right? So until it can get above the cloud and stay up higher for at least three to five days I would just leave it alone.
Good luck. Hope it helps. And I’ll see you on the next video.
Hubert
