Buy the dip on CME Group stock
Financial services stock CME Group Inc (NASDAQ:CME) is 1.9% lower to trade at $214.21 this afternoon, pulling back from its Dec. 4, 19-month high of $223.80. Despite a 2.5% deficit in December, a historically bullish signal flashing on the charts could — if past is precedent — rectify this minor setback.
According to Schaeffer’s Senior Quantitative Analyst Rocky White, CME Group stock is within one standard deviation of its 50-day moving average for the eighth time in the past three years. Following the last seven signals, the stock was higher one month later 86% of the time, averaging a 3.1% return. A move from its current perch would have CME reclaiming those multi-year highs.
A shift in the options pits could create additional tailwinds for the shares, as short-term traders are more bearish than usual. This is according to CME’s Schaeffer’s put/call open interest ratio (SOIR) of 1.18 that ranks in the 90th percentile of annual readings.