These Charts Need More Law & Order

Despite the Trump Administration's tough stance on crime and criminals, the prison stocks, CXW GEO, have been noticeably cooling off since the spring months. 

Recall that the private prisons (also functioning as REITs) rallied sharply in the wake of Trump's surprise victory last November. But now comes the true test of mettle, as both daily charts, below, look ripe for further weakness into the one-year anniversary of the Election. 

Note how both charts have been sporting lower highs and lower lows by price for months on end, with a recent consolidation on both amounting to what can be deemed a bearish descending triangle bound to break further yet. Interest rates are another factor, to boot. As a rising rate environment may see the prison stocks taken out with the REIT bathwater. 

But given the full plate Trump has, in terms of North Korea, healthcare, tax reform, etc., making bold moves regarding criminals may take a bit longer than some expect. Either way, CXW GEO look to be short ideas into weakness. 

Elsewhere, GS and NFLX are offering up ho-hum earnings reactions this morning, which may very well be said of the market at-large. We are watching oil and natural gas to see if they can keep steadily improving this week.