Winter's Over: Time to Break Up and Play the Field

As one of our Members, Tyler, astutely pointed out this morning, the weekly chart for Match Group, Inc., makes the strong price action over the last two weeks all the more intriguing on the long side. 

Match Group was a spin-off from IAC and is the owner of dating apps such as Tinder, not to mention popular dating websites like OurTime, Match.com, BlackPeopleMeet, PlentyOfFish, and Lord knows what else. 

Considering winter is now long gone, it may be time for many temporary winter cuddle buddies to split up in search of summer fun, as the old cliché goes. Thus, the plethora of dating apps and sites in MTCH's portfolio of brands should stand to benefit. 

On the weekly chart, below, note how coiled the consolidation by price has been since late-October 2016. This is quite a good time to go in terms of working off the prior rally which began back in February 2016. 

With earnings coming up on May 2nd, MTCH may have a nice rally beforehand if the broad market can hold up here, especially considering the many shorts in the float to squeeze. 

While I am not in a rush to put on a bunch of new longs this morning, with the market still soft and bank earnings looming tomorrow, it is worth keeping a running list of outperforming names like MTCH in the event we see another rally in the tape before the "Sell in May" crowd begin their annual Gregorian chant.