Getting Technical: Bullish signs in Teladoc, General Mills & Marathon Patent

Michele Schneider, Marketgauge.com Partner and Director of Trading Research & Education, breaks down tech stocks on the move.

Video transcript

JARED BLIKRE: Welcome back to Yahoo Finance Live. I'm Jared Blikre. Well, it's time to get technical and, for that, we have Michele Schneider also called Mish, of MarketGauge.com. She's a partner there and Director of Trading Research and Education. Mish, great to see you. We were talking before the break.

We want to start big picture, because you're charting small caps, that is, IWM, which tracks the Russell 2000, that's an ETF, as well as GLD, which tracks gold. And I have a one year chart on the Wi-Fi interactive here. You can see they diverge quite a bit, because we had a huge run-up, starting after the election last year. That's when all these gains were made.

But you take a look over the last six months. And you can see they were somewhat correlated, and now maybe that's breaking down. What's your take on this.

MICHELE SCHNEIDER: Well, the reason why I wanted to show the Russells particularly is because I do believe that it's the best overall barometer of what the economy is going to do, whereas NASDAQ and SPY and Diamonds have other influences from technology and interest rates, et cetera, IWM really represents the manufacturing industrial side, all 2000 stocks are small cap stocks in the US. And you can see that it's well underperformed all the other indices.

And so after it actually has fallen this week, what's so interesting is, number one, it held some real critical support at around 204-205. But on top of that, it broke under the 200 day moving average. And today, at around 214, it's actually clearing back. So if we were looking for any signs that there is some hope, and I would say after all these great retail earnings, that would be the best hope that we have right now, that the consumers are still very much alive, even though stimulus is going away.

We got to look there. So I'd like to see it hold, this 214, close the week out there, get back over 215. because that was actually a July calendar range low. It needs to clear. And then perhaps we can go back and have a happy week next week, less choppy and more to the upside.

JARED BLIKRE: I want to have a happy week next week. So also somebody once told me, hope is not a strategy. I want to shift gears to Teladoc. I know that the ticker on your radar here, one of the high flyers early on in the pandemic. And it has fallen off here. I'm going to pull up a chart on the Wi-Fi interactive that everybody can see.

This goes back a year. You can see it's down 35%. So what do you see in Teladoc right now?

MICHELE SCHNEIDER: Well, on July 28th it made a big move down, and completely reversed. So that's the kind of indication we like to look, especially when that low is a new 60 plus day low. That low is at 133:25. And we've kind of hung out and not really looked at it, except sort of, to see what happens from there. And today really is the first day that it's showing some muscle, along with the rest of the market.

From a fundamental standpoint, with the Delta variant, I think Teladoc, which is online consultation with doctors, could go back to sort of maybe not as great as it was during COVID, but certainly it's been so undervalued, this is a good play. So right now it's under 140.

I certainly think your risk is under 133. For now, interim target, I'd be looking at somewhere between 150 and 153, and perhaps it could even go higher. But it's also a Cathie Wood holding, not that that was my impetus. But nonetheless, I like to use a little bit better timing than she does, and, right now, I think your risk is probably the least amount that you can get for such a big stock.

JARED BLIKRE: All right, and let's talk about General Mills. Definitely not a cash stock by Cathie Wood's definition. But I'm looking at this chart here. This has gone pretty much sideways over the last year, seems a bit range-bound, although we do have a lower low here. So you could say it's in a short term downtrend. What do you see in this chart?

MICHELE SCHNEIDER: Well, actually, on the daily chart, if we just use a simple 50 and 200 day moving average, it's above both. So that puts it kind of in a bullish phase, although the 50 is still sloping negative. So it's a weak bullish phase. But what I like is this sideways consolidation that you just talked about.

And even though food prices have elevated, this thing has held up pretty well. And so the momentum is doing good. It could do better. I think you have a pretty good risk down to about 59. We actually bought this stock today.

And if it can get through 61-60, if you want to see all that sideways action clear, then I think, you know, we can have a pretty good move up at least up to about 64-65. This isn't a high flying stock like Teladoc. So you'd have to have a little bit more patience. So I would kind of keep that in the portfolio with a tight risk.

JARED BLIKRE: You know what I'm also noticing here? We got the 50 day closing in on the 200. That's going to be a death cross headline. Is it going to make it for General Mills? I don't know. We got to get to Marathon Patent Group. We got less than a minute. I'm looking at this chart. Looks a lot more bullish than General Mills here. Break it down for us, please.

MICHELE SCHNEIDER: Well, Marathon also had a big sell off with Bitcoin. It's related to Digital Holdings, so it is an ancillary stock, as a way to play the cryptocurrency space. It finally moved out today. Again, we have a good 50 day moving average support area at around 29. We can use 31 as the actual new support. And now that it's moving up on the day, I would say that your next target would be around 38, then 42.

And if it could keep going and crypto can get through 50,000, we might even see it up at around 57. So I like Marathon as a way to play coins if you don't want to actually buy coins themselves.

JARED BLIKRE: Yeah, and still waiting for that Bitcoin ETF Gary Gensler. Thank you for that. Michelle, it's always great to have you here, Michele Schneider, MarketGauge.com partner and Director of Trading Research and Education.