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Healthcare draws election-year worry, but 2016 repeat not seen

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By Oldiefan from PixabayHealthcare draws election-year worry, but 2016 repeat not seen

NEW YORK (Reuters) – With another election year looming, investors in the healthcare sector are wary the coming months could reopen wounds suffered during the 2016 U.S. presidential race.

Healthcare becoming as a hot an issue in the 2018 midterm elections as it was two years earlier could threaten the sector. A big risk stems from voters giving majorities to Democrats in the U.S. Senate and House of Representatives, in a rejection of President Donald Trump’s Republican party.

Investors worry that shift would pressure the industry, including through a greater focus on prescription drug prices, even if Trump’s grip on the presidency tempers any regulatory changes.

In 2016, similar scrutiny had plagued the healthcare sector, particularly pharmaceutical and biotechnology shares.

“If we woke up tomorrow and it was a given fact (the Democrats) were going to take over the House and the Senate, healthcare would be one of the worst-performing sectors of the market,” said Walter Todd, chief investment officer at Greenwood Capital Associates in Greenwood, South Carolina.

Momentum behind such a shift appears to be building after Democrat Doug Jones on Tuesday won a special Senate election in Alabama that will cut the Republicans’ Senate edge to 51 seats against 49 Democrat seats.

Even so, healthcare shares would likely stand up better to election risk in 2018 than they did to the scrutiny of the sector in 2016.

For one, the sector is cheaper relative to the broader market following 2016’s struggles. Investors also say it could benefit from a potential boost in merger activity if drugmakers and other multinational companies bring back cash held overseas under the tax overhaul bill moving through U.S. Congress.

The stocks also may be less vulnerable now to news about high drug prices and other healthcare developments, having already weathered those headlines in 2016, investors say.

And some investors are also less concerned that healthcare will be a significant topic on the campaign trail this time around, given other issues that have come to the forefront since Trump’s election.

“I think there will be fears. Do they come in March? Do they come in May? I don’t know when they come, but yes there will be fears of the election,” said Teresa McRoberts, a portfolio manager who focuses on healthcare at Fred Alger Management in New York.

Still, McRoberts added: ”The downside in the group – it’s hard for me to see that it is going to be as much as it was in ’16.”

Healthcare shares had struggled for most of 2016, undermined by investor fears about new drug pricing rules or other regulations, especially should Democratic presidential candidate Hillary Clinton have won.

The sector .SPXHC declined 4.4 percent that year, making it the worst performer of all major sectors, while the overall S&P 500 .SPX rose 9.5 percent. Biotech and pharmaceutical shares were hit particularly hard.

Healthcare’s underperformance in 2016 was its worst since 1999, and its worst in an election year since 1992.

On balance, however, midterm election years have treated healthcare stocks well.

According to Thomson Reuters data dating back to 1990, the sector’s annual performance on average topped the broad S&P 500 by 2.7 percentage points. But in the seven midterm years over that time, it outperformed by 6.2 percentage points on average, with the sector outperforming in five of those years.

To be sure, certain healthcare issues, including the cost of medicine, have drawn broad attention as a populist issue, including from some Republicans like Trump himself.

But Democrats as a whole are seen as more likely to push for changes, such as the ability for the U.S. government to negotiate drug prices through the Medicare health program.

”If the 2018 elections were to see a change of leadership … then I think the drug pricing issue would be very much back in the picture for all of the pharmaceutical and biotech companies,” said George Strietmann, portfolio manager with Cincinnati investment advisory firm Bahl & Gaynor.

Healthcare stocks rebounded by 21.5 percent so far in 2017, but that was nearly matched by the 19.3 percent rise for the S&P 500.

The sector, at 16.4 times forward earnings estimates, trades at a roughly 10 percent discount to the 18.2 price-to-earnings ratio for the S&P 500, according to Thomson Reuters Datastream.

That stands out especially when compared with the sector’s nearly 18 percent premium to the S&P 500, historically, as well as its 4 percent premium in late 2015, before election-related concerns spiked.

“It’s still reasonably cheap,” said Nathan Thooft, co-head of global asset allocation, Manulife Asset Management in Boston, which is overweight the healthcare sector.

Healthcare becoming a campaign issue is ”definitely a risk,“ Thooft said. ”I just don’t think it’s going to be the prominent debate of the midterm election.”

Reporting by Lewis Krauskopf; Editing by Meredith Mazzilli

Published at Sat, 16 Dec 2017 01:50:29 +0000

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No bears here! Market on the verge of making history

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By ulamae1 from PixabayNo bears here! Market on the verge of making history

Why rising stocks don't benefit everyone
Why rising stocks don’t benefit everyone

The U.S. stock market is up ever so slightly this month. And if the benchmark S&P 500 is able to eke out a gain for December, it will make history. This would be the first time ever that the blue-chip index had a gain for all 12 months of a calendar year.

Ryan Detrick, senior market strategist with LPL Research, noted in a report this week that the market has had 12-month winning streaks before. But they have never been for an entire calendar year.

Detrick said that 1958, 1995, and 2006 were “close but no cigar” years. The S&P 500 had a positive total return (which includes gains in dividends in addition to stock price increases) in 11 months.

He added that even though some investors may be nervous that this bull run is starting to get a little long in the tooth, history suggests that stocks should keep climbing.

Detrick pointed out that the S&P 500 had an average return of 10.8% in 1959, 1996 and 2007 — the year after the market enjoyed gains in 11 of the previous 12 months.

A double-digit percentage gain next year would be impressive given that the S&P 500 is up nearly 20% so far this year.

Stocks surged Friday on growing hopes about the Republican tax plan.

The Dow was up more than 160 points, moving closer to the 25,000 level, and has now gained more than 25% in 2017. The Nasdaq was up more than 1%. It has surged nearly 30% this year and is approaching the 7,000 mark.

But will the market remain this calm in 2018 or will it finally start to show some choppiness again?

It’s been eerily serene this year. The market’s favorite gauge of volatility, the CBOE’s VIX(VIX) index, is down nearly 30% and below 10 — not far from its all-time low.

CNNMoney’s Fear & Greed Index, which looks at the VIX and six other measures of market sentiment, is showing signs of Greed and is approaching Extreme Greed levels.

Related: Is this Trump’s economy?

So even if stocks continue to climb higher, many experts warn that volatility will make a comeback.

“Despite my bullish expectations, I don’t expect it to be a smooth ride and think we may be in store for some turbulence along the way,” said Chris Zaccarelli, chief investment officer of Independent Advisor Alliance, in a report.

Zaccarelli suggested that the market may be due for a pullback after this relentless grind higher. He noted that the S&P 500 has had a least 5% dip from recent highs at least once every two years since 1980. The last such drop was February 2016.

What could spark a return of volatility? Zaccarelli said the transition at the Federal Reserve, with Jerome Powell set to take over from Janet Yellen, is a possible wild card.

So could lingering concerns about North Korea, tension in the Middle East, trade disputes in the wake of NAFTA negotiations and the mid-term elections.

Related: Stocks at record highs on tax bill hopes

But the biggest worry might be the return of inflation. There is little evidence of it in the market right now as pricing pressures remain mild. That could change though if oil prices, currently hovering just under $60 a barrel, climb further.

A further spike in crude could lift gas prices as well, making it more expensive for consumers to fill up their gas tanks.

That could mitigate any savings Americans might get from the tax cuts that President Trump and Republicans hope to approve before the end of the year.

“The key for inflation is watching where oil prices go,” said Dave Harden, president and chief investment officer of Summit Global Investments. “If they get above $75 and into the $80-$90 range, it will suck out any benefit to consumers from lower taxes.”

Published at Fri, 15 Dec 2017 15:38:05 +0000

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Disney deal set to value Fox at more than $75 billion: source

by WolreChris from Pixabay

 

Disney deal set to value Fox at more than $75 billion: source

(Reuters) – Walt Disney Co’s (DIS.N) deal to buy film, television and international businesses from Rupert Murdoch’s Twenty-First Century Fox Inc (FOXA.O) will value the latter at over $40 per share, or $75 billion, a person familiar with the matter said.

The deal, which is set to be announced on Thursday, will end more than half a century of expansion by Murdoch, 86, who turned a single Australian newspaper he inherited from his father at the age of 21 into one of the world’s most important global news and film conglomerates.

Under the terms of the all-stock deal, Fox assets that will be sold to Disney, including the Twentieth Century Fox movie and TV studio, cable networks and international operations will be valued at around $29 per share, the source said on Wednesday.

Fox’s remaining assets, focused on news and sports, will be offered to existing Fox shareholders in a new company likely to be valued at more than $11 per share, according to the source, which asked not to be identified ahead of an official announcement.

Disney and Fox did not immediately respond to requests for comment. Fox shares ended trading on Wednesday at $32.75, giving it a market capitalization of $30.34 billion. The Wall Street Journal first reported on the exact terms of the deal.

The deal will mark a return by Murdoch to focus on the news business, his lifelong passion. Australian-born Murdoch inherited his father’s newspaper business in 1952 and transformed it over many years, acquiring premiere properties such as the Wall Street Journal, the London Times and the 20th Century Fox movie studio.

Murdoch’s shift to selling assets rather than buying them has come as a surprise to many who expected the 86-year-old to hand over the businesses to his sons, James and Lachlan.

None of the Murdochs are expected to be given board seats at Disney, according to the sources.

Disney has been struggling to bolster its TV business as cancellation of cable subscriptions is pressuring its biggest network, sports channel ESPN.

The Fox deal brings marquee franchises inside the Mouse House, on top of Iger’s previous purchases, including Pixar Animation Studios, Marvel Entertainment and “Star Wars” producer Lucasfilm.

Disney also will buy Fox’s stake in the Hulu video streaming service, giving it majority control of the competitor to Netflix Inc (NFLX.O). Hulu also is partially owned by Comcast Corp (CMCSA.O) and Time Warner Inc (TWX.N).

Under the deal, Disney will gain access to 46 million subscribers in three major markets, the U.S. Western Europe and India, according to Barclays analysts.

Reporting by Greg Roumeliotis in New York; editing by Bil Rigby

Published at Wed, 13 Dec 2017 23:04:18 +0000

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VeriFone Stock: In-Store Shopping Should Help Recovery

by AhmadArdity from Pixabay

VeriFone Stock: In-Store Shopping Should Help Recovery

By Richard Suttmeier | December 11, 2017 — 11:07 AM EST

VeriFone Systems, Inc. (PAY) provides in-store point-of-sale devices used by consumers while swiping credit or debit cards or using the chip-reading feature to pay for goods. The company offers hand-held devices as well as services conducted using smartphones.

The stock closed Friday at $18.05, up just 1.8% year to date and up a solid 19.5% since setting its post-election low of $15.10 on Dec. 2, 2016. The stock set its post-election high of $21.48 on Sept. 11, and it is in correction territory since then with a decline of 16%.

VeriFone stock has had a volatile ride since trading as high as $39.27 in June 2015, declining 62% to its multi-year low of $14.96 set on Oct. 17, 2016. This is evaluated using Fibonacci retracements of the decline on the daily chart shown below.

Analysts expect VeriFone to post earnings per share of 43 cents to 44 cents when it reports results after the closing bell on Dec. 12. Wall Street expects VeriFone to remain a dominant player in the payments industry and looks for year-over-year earnings and revenue gains to enhance a near-term rise in the share price. The key will be guidance related to the company’s restructuring plans. (See also: VeriFone Q3 Earnings in Line, Revenues Beat Estimates.)

The daily chart for VeriFone

Daily technical chart showing the performance of VeriFone Systems, Inc (PAY) stockCourtesy of MetaStock Xenith

The daily chart for Verifone shows horizontal lines that represent the Fibonacci retracement levels of the decline from the June 2015 high to the October 2016 low. The chart clearly shows that the stock has been struggling to sustain gains above the 23.6% retracement level of $20.67, which has been a magnet since Feb. 24.

The weekly chart for VeriFone

Weekly technical chart showing the performance of VeriFone Systems, Inc (PAY) stockCourtesy of MetaStock Xenith

The weekly chart for Verifone will be upgraded to positive if the stock is able to close this week above its five-week modified moving average of $18.30, which is highly likely in the case of a positive reaction to earnings. The longer-term upside on this positive outcome is strength to its 200-week simple moving average at $26.57, which is the stock’s “reversion to the mean.” The stock failed at this milestone during the week of April 22, 2016, when the average was $29.71. The 12 x 3 x 3 weekly slow stochastic reading is projected to end this week at 23.64, rising from 23.01 on Dec. 8.

Given these charts and analysis, my trading strategy is to buy weakness to my weekly value level of $16.04 and to reduce holdings on strength to my semiannual risky level of $29.16. Penetrating and holding my monthly pivot (or magnet) of $18.66 is the key to a positive earnings reaction. (To learn more, check out: How to Use a Moving Average to Buy Stocks.)

Published at Mon, 11 Dec 2017 16:07:00 +0000

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AT&T Stock Near Major Sell Signal

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AT&T Stock Near Major Sell Signal

By Alan Farley | December 8, 2017 — 9:15 AM EST

AT&T Inc. (T) stock entered 2017 on a high note, trading near a nine-year high, but it has lost significant ground in recent months. The shares fell nearly 15% to a two-year low in the low $30s in November, while a bounce into December has reached major resistance that could set off aggressive sell signals, alerting short sellers to a low-risk opportunity that could build strong profits in the first half of 2018.

Improving sentiment has deteriorated since the Justice Department sued to block the company’s $85 billion bid for Time Warner Inc. (TWX) in late November. A trial is scheduled for March 2018 but could drag on into the second half of next year, distracting AT&T from much needed efforts to underpin its lagging stock price. For starters, the dispute ties up capital that can’t be used for stock buybacks after tax cuts deliver a cash windfall to America’s corporations. (See also: Tax Reform’s 7 Biggest Stock Winners.)

T Long-Term Chart (1990 – 2017)

A multi-year uptrend ended at $30.13 at the start of 1996, giving way to a rounded correction that found support in the low $20s a few months later. AT&T returned to resistance in June 1997 and broke out in October, entering a final rally wave that posted an all-time high just below $60 in 1999. The stock tested that level three times into the end of 2000, building a long-term top ahead of a 2002 breakdown and downtrend that picked up steam into the 2003 low at $18.85.

The stock underperformed in the first half of the mid-decade bull market, stuck in a trading range between the mid-$20s and bear market low. It finally turned higher in the second half of 2016, lifting into broken top resistance in the low $40s, where the rally ended in October 2007. A steep downturn during the 2008 economic collapse wiped out those gains, dumping the stock within two points of the 2003 low in November.

A slow-motion uptick stalled in the upper $30s in 2012, while the subsequent decline held within a nine-point range into the August 2015 low. The stock turned sharply higher into 2016, breaking out above the 2012 high in June and reaching the 2007 high just one month later. It reversed at that resistance level and failed a January 2017 test, generating a downturn that is still in force more than 11 months later. (For more, see: The Top 4 AT&T Shareholders.)

T Short-Term Chart (2015 – 2017)

The stock broke out above a three-year trendline of lower highs in February 2016 and finally completed a 100% retracement into the 2007 high in July. A decline into December ended at support, generating a sturdy bounce that fell short of the prior high one month later. The stock tested the trendline once again in November 2017, triggering volatile whipsaws that are still in progress as we wrap up the trading year.

Price action between July 2016 and October 2017 carved a descending triangle, with support above at the trendline. A breakdown ended at a two-year low in early November, followed by an oversold bounce that is now testing triangle resistance in the upper $30s. That level has also aligned with the 200-day exponential moving average (EMA) and .618 Fibonacci sell-off retracement level, raising odds for a decline that eventually breaks the trendline and 2017 low.

On-balance volume (OBV) tested the 2015 high in June 2016 and turned lower, entering a distribution wave that has posted lower highs into the fourth quarter of 2017. The indicator hit a three-year low in October and may now print the next lower high in the long series. Long-term support under the November low could then come into play, raising odds for a breakdown that generates a multi-year downtrend. (See also: Uncover Market Sentiment With On-Balance Volume.)

The Bottom Line

AT&T has rallied into resistance after breaking support in the upper $30s in October. Short sellers may pounce on this bounce, generating a reversal that brings multi-year support into play in coming months. (For additional reading, check out: AT&T and Time Warner Say Proposed Merger Is ‘Pro-Consumer’.)

Published at Fri, 08 Dec 2017 14:15:00 +0000

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Stocks Mixed as Large Caps Outperform Small Caps

 

Stocks Mixed as Large Caps Outperform Small Caps

By Justin Kuepper | Updated December 8, 2017 — 5:51 PM EST

The major U.S. indexes were mixed over the past week, with industrials in the Dow Jones Industrial Average outperforming small-cap stocks in the Russell 2000. November non-farm payrolls rose 228,000, which exceeded consensus estimates calling for 190,000, while average hourly earnings rose a better-than-expected 0.2% for a 2.5% annual pace. Meanwhile, the ADP Employment Report came in at 190,000, slightly above a consensus estimate of about 186,000 for the month.

International markets were flat or in positive territory over the past week. Japan’s Nikkei 225 was unchanged; Germany’s DAX 30 rose 2.27%; and Britain’s FTSE 100 rose 1.31%. In Europe, the Eurozone economy expanded by 0.6% during the third quarter, which points to a stronger-than-expected year. In Asia, Japan’s economy expanded at a 2.5% annual pace between July and September, which is up from an earlier estimate of 1.4% growth. Despite these gains, investors remain concerned over the rising threat from North Korea.

The SPDR S&P 500 ETF (ARCA: SPY) rose 0.4% over the past week. After nearly reaching its pivot point at $262.23, the index rebounded towards the upper end of its price channel this week. Traders should watch for a breakout to upper trendline and R1 resistance at $268.83 or a move lower to retest the pivot point or hit lower trendline support at $260.00. Looking at technical indicators, the relative strength index (RSI) moved back into overbought territory at 72.03, while the moving average convergence divergence (MACD) remains in a bullish uptrend dating back to late November. (See also: 77% of Investors Worried About Market Bubbles in Survey.)

Technical chart showing the performance of the SPDR S&P 500 ETF (SPY)

The SPDR Dow Jones Industrial Average ETF (ARCA: DIA) rose 0.48% over the past week, making it the best performing major index. After moving off of its trendline resistance, the index rebounded slightly this week toward the upper half of its price channel. Traders should watch for a move to upper trendline and R1 resistance at $246.86 or a move lower to retest the pivot point at $239.47. Looking at technical indicators, the RSI appears lofty at 75.33, but the MACD remains in a bullish uptrend that dates back to late November.

Technical chart showing the performance of the SPDR Dow Jones Industrial Average ETF (DIA)

The PowerShares QQQ Trust (NASDAQ: QQQ) rose 0.14% over the past week. After briefly hitting S1 support at $151.72, the index rebounded above its pivot point to the upper half of its price channel. Traders should watch for a move to upper trendline and R1 resistance at $157.64 or a move lower to retest S1 support and the 50-day moving average. Looking at technical indicators, the RSI appears neutral at 56.06, but the MACD remains in a bearish downtrend that dates back to late November. (For more, see: FANG Stocks Getting Sold in Late-Year Rotation.)

Technical chart showing the performance of the PowerShares QQQ Trust (QQQ)

The iShares Russell 2000 Index ETF (ARCA: IWM) fell 1.05% over the past week, making it the worst performing major index. After nearing its 50-day moving average at $149.49, the index trended sideways throughout the week for the most part. Traders should watch for a rebound toward upper trendline and R1 resistance at $157.30 or a breakdown below the 50-day moving average to lower trendline and S1 support at $147.25. Looking at technical indicators, the RSI appears neutral at 56.24, while the MACD is trending sideways.

Technical chart showing the performance of the iShares Russell 2000 Index ETF (IWM)

The Bottom Line

The major indexes were mixed over the past week, with tech and small-caps trading at neutral levels and industrials and S&P 500 components trading at lofty levels. Next week, traders will be closely watching several different economic indicators, including the FOMC meeting announcement on Dec. 13, retail sales on Dec. 14 and industrial production on Dec. 15. (For additional reading, check out: 12 Forces May Kill Stocks Despite Tax Reform Euphoria.)

Note: Charts courtesy of StockCharts.com. As of the time of writing, the author had no holdings in the securities mentioned.

Published at Fri, 08 Dec 2017 22:51:00 +0000

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Intel Stock Nears Breakdown From Key Support Levels

 

Intel Stock Nears Breakdown From Key Support Levels

By Justin Kuepper | December 8, 2017 — 11:17 AM EST

Intel Corporation (INTC) shares have been trending lower since making 52-weeks highs of $47.30 in early November. Despite the recent weakness, the company has outperformed many other chipmakers that experienced similar sell-offs over the past month as traders took profit off the table, including Advanced Micro Devices, Inc. (AMD) and NVIDIA Corporation (NVDA). All of these companies had realized strong gains since the beginning of the year.

The positive news is that the industry’s fundamental performance has remained strong. During the third quarter, Intel’s revenue rose 2.3% to $16.15 billion – beating consensus estimates by $420 million – and net income of $1.01 per share beat consensus estimates by 21 cents per share. Management also raised its fourth quarter guidance to revenue of $16.2 billion and net income of 86 cents per share, both of which were above consensus estimates. (See also: Intel Stock Well Positioned for Year-End Rally.)

Technical chart showing the performance of Intesl Corporation (INTC) stock

From a technical standpoint, the stock moved sharply lower from its highs made earlier this year to trendline and S1 support around $43.38. The relative strength index (RSI) moderated to neutral levels of around 44.98, while the moving average convergence divergence (MACD) remains in a bearish downtrend dating back to mid-November. The stock remains significantly higher than its 52-week lows despite the recent downturn.

Traders should watch for a breakdown from the 50-day moving average at $42.88 to S2 support at $41.91 or to close the gap to around $41.00. If the stock rebounds from these levels, traders should watch for some resistance at around $44.50 or a move to the pivot point at around $45.23. Traders should maintain a bullish long-term bias on Intel but a bearish short-term bias, especially if the stock breaks down from current support levels. (For more, see: Why Intel and Broadcom Are Still Cheap.)

Chart courtesy of StockCharts.com. The author holds no position in the stock(s) mentioned except through passively managed index funds.

Published at Fri, 08 Dec 2017 16:17:00 +0000

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Lululemon: A Hot Stock in Yoga Pants

by Free-Photos from Pixabay

Lululemon: A Hot Stock in Yoga Pants

By Richard Suttmeier | December 6, 2017 — 8:35 AM EST

Lululemon Athletica Inc. (LULU) makes and retails athletic apparel and accessories, including the forever popular yoga pants that many women love to wear both at the gym and on casual outings.

The stock closed Tuesday at $66.36, up 2.1% year to date and solidly in bull market territory at 39.3% above its post-election low of $47.64 set on May 30. The stock set its post-election high of $72.70 on Dec. 8, 2016, and is 8.7% below this level. Lululemon shares have had a volatile ride since trading as high as $81.81 on Aug. 25, 2016, then trading as low as $47.26 on May 31, 2017. This price movement can be evaluated using Fibonacci retracements of the decline from this high to this low.

Analysts expect Lululemon to post earnings per share between 52 cents and 55 cents when it reports results after the closing bell on Dec. 6. Wall Street looks for revenue growth to continue as margins improve on new designs to make you look great while you sweat at the gym. (See also: Lululemon Stock Could Head Into Long-Term Breakout.)

The daily chart for Lululemon

Daily technical chart showing the performance of Lululemon Athletica Inc. (LULU) stockCourtesy of MetaStock Xenith

The daily chart for Lululemon shows horizontal lines that represent the Fibonacci retracement levels of the 42% decline from the August 2016 high to the low seen on May 31, 2017. The five price gaps lower or higher were in reaction to the past five earnings reports, so traders and investors should beware of the risk/reward this afternoon. The chart clearly shows a neutral zone between the 50% retracement of $64.55 and the 61.8% retracement of $68.61.

The weekly chart for Lululemon

Weekly technical chart showing the performance of Lululemon Athletica Inc. (LULU) stockCourtesy of MetaStock Xenith

The weekly chart for Lululemon is positive but overbought, with the stock above its five-week modified moving average of $64.72, and Lululemon has been above its 200-week simple moving average, or “reversion to the mean,” which is currently at $57.86, since the week of June 30. The 12 x 3 x 3 weekly slow stochastic reading is projected to end this week at 84.90, solidly above the overbought threshold of 80.00.

Given these charts and analysis, my trading strategy is to buy weakness to my semiannual value level of $41.17 and to reduce holdings on strength to my quarterly risky level of $72.92. My monthly pivot (or magnet) is $67.42. (For more, see: Top 4 Consumer Cyclical Stocks for 2017.)

Published at Wed, 06 Dec 2017 13:35:00 +0000

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First Solar Stock Showing Unusual Strength

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First Solar Stock Showing Unusual Strength

By Alan Farley | December 6, 2017 — 9:35 AM EST

First Solar, Inc. (FSLR) stock is sticking like glue to fourth quarter highs despite a series of bear raids intended to drop the Tempe, Arizona-based solar giant into an intermediate decline. This unusual strength suggests that the stock will head much higher in the first quarter of 2018, perhaps adding another 25% to dramatic gains posted since it bottomed out in April at a four-year low. As a result, market players should watch resistance at $62.50 for a breakout that sets off profitable buying signals.

The company raised 2018 earnings per share estimates above expectations in a Dec. 5 Analyst Day meeting, forcing many short sellers to cover positions. The bullish metrics eased newly bearish sentiment following passage of the Senate’s tax reform bill, which limits alternative energy credit provisions. On the flip side, a recent ruling on solar panel dumping by the the U.S. International Trade Commission (ITC) should underpin profits at the largest U.S. panel manufacturer starting in the first quarter of 2018. (See also: First Solar and SunPower: Effects of Solar Panel Tariffs.)

FSLR Long-Term Chart (2006 – 2017)

The company came public on the Nasdaq exchange in November 2006, opening at $24.50 and taking off in a powerful uptrend that reached $283 at the end of 2007. The stock’s value was nearly cut in half in the next 30 days, dumping to $143 ahead of an equally vigorous recovery wave that posted an all-time high at $317 in May 2008. A modest pullback accelerated during the economic collapse, dropping the stock through the prior low and into a 52-week low in the mid-$80s.

It bounced back above $200 in May 2009, stalling at the 50% sell-off retracement level while marking the highest high in the past eight years. A slow-motion decline followed, posting a series of lower highs and lower lows into a dramatic 2011 breakdown through the 2008 bear market low. The subsequent decline crushed remaining shareholders in a vertical impulse that reached an all-time low at $11.43 in June 2012.

A sturdy bounce into 2014 ended in the mid-$70s, marking major resistance that remains in force more than three years later. The stock then eased into a trading range, with support at $40 holding into a 2015 breakdown that ended at a higher low in the mid-$20s in April 2017. Committed buyers entered in force a few weeks later, generating a new uptrend that mounted broken range support in July. It stalled just above $60 in November and has spent the past five weeks consolidating impressive annual gains in a narrow range price pattern. (For more, see: The History of First Solar.)

FSLR Short-Term Chart (2016 – 2017)

A Fibonacci grid stretched across the 2016 into 2017 decline organizes two-sided price action, with the rally since April stair-stepping through harmonic resistance levels into the .786 retracement in the low $60s. Many bounces end at this critical level, while breakouts can be dramatic, generating momentum-fueled advances that complete V-shaped patterns. The 2016 high in the mid-$70s could be reached quickly if the bullish scenario plays out, offering sizable profits as long as exits are taken promptly.

On-balance volume (OBV) lifted to an all-time high at the start of 2016 and rolled into a distribution wave that ended at the same time the stock posted the deep April 2017 low. Healthy accumulation since that time has nearly reached the prior high, generating a bullish divergence, predicting that price will play catch up in the coming weeks. This bodes well for a breakout above harmonic resistance in the low $60s and a rapid ascent into the mid-$70s. (See also: First Solar Tops Q3 Earnings, Raises ’17 EPS Outlook.)

The Bottom Line

First Solar is holding close to fourth quarter highs while the Nasdaq-100​ sells off, signaling resiliency that should translate into higher prices. A breakout above horizontal resistance at $62.50 could set this rally wave into motion, targeting six-year resistance in the mid-$70s. (For additional reading, check out: Top 3 Solar Stocks as of December 2017.)

Published at Wed, 06 Dec 2017 14:35:00 +0000

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Apple may not need this supplier. Its stock crashes 23%

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Dialog Semiconductor is finding out what happens when you put most of your eggs (or apples, perhaps) in one basket.

Shares in the British-German tech company plunged 23% on Monday, after it acknowledged that Apple(AAPL, Tech30) — by far its biggest customer — can now develop the power management chips Dialog produces.

Dialog shares had already slumped in April on fears that Apple could drop the company as a supplier, and Monday’s crash took the stock’s losses this year to more than 40%.

The company has previously tried to play down those concerns. Monday was the first time it has publicly acknowledged Apple could eventually replace its chips with in-house production.

“Dialog recognizes Apple has the resources and capability to internally design a [power management integrated circuit]and could potentially do so in the next few years,” the company said in a statement.

A lot is at stake. Apple accounted for74% of Dialog’s sales in 2016, according to the company’s annual report.

“This is a major disaster,” said Tim Wunderlich, analyst at Hauck & Aufhauser.

“I would expect Dialog to experience declining sales from 2019 onward, intensifying gross margin pressure, (and) brain drain as uncertainties make the company a far less appealing employer for top talent,” he added.

The Nikkei Asian Review reported last weekthat Apple could start using its own power management chips as early as next year.

Dialog said it had no information to suggest Apple was getting ready to start making its own chips that soon.

It is working with Apple on plans for 2019 products, and will have a better idea about its future contracts with Apple by March, the company added.

Apple did not respond to a request for comment.

Another company, Imagination Technologies,(IGNMF) saw its stock drop more than 70% in April, after Apple said it was planning to stop licensing the firm’s technology in about two years.

Imagination has since been sold to China-backed Canyon Bridge Capital Partners for £550 million ($740 million), well below the £2 billion ($2.7 billion) it was worth at its peak in 2012.

Published at Mon, 04 Dec 2017 16:27:57 +0000

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Autozone Stock: Look for ‘Golden Cross’ on Positive Beat

 

Autozone Stock: Look for ‘Golden Cross’ on Positive Beat

By Richard Suttmeier | December 4, 2017 — 1:52 PM EST

AutoZone, Inc. (AZO) is a retailer of after-market auto parts and accessories. These products are usually cheaper than the automakers’ branded parts and are made for do-it-yourself vehicle owners.

The stock opened Monday at $687.37, down 13% year to date but solidly in bull market territory at 40% above its post-election low of $491.13 set on July 20. AutoZone stock set its post-election high of $813.70 on Dec. 8, 2016, and the stock is currently in correction territory at 15.5% below this level. The all-time intraday high of $819.54 was set during the week of July 15, 2016.

Analysts expect AutoZone to post earnings per share of approximately $9.80 when it reports results before the opening bell on Dec. 5. Despite recent share price strength, some say that the company is struggling to protect profits and increase revenue growth, as the year-over-year growth rate has been disappointing. (See also: AutoZone Q4 Earnings and Revenues Top Estimates, Up Y/Y.)

The daily chart for AutoZone

Daily technical chart showing the performance of AutoZone, Inc. (AZO) stockCourtesy of MetaStock Xenith

The daily chart for AutoZone shows that the stock is poised to confirm a “golden cross” in the case of a positive reaction to earnings. A “golden cross” occurs when the 50-day simple moving average (SMA) rises above the 200-day SMA, indicating that higher prices lie ahead. Today, the 50-day SMA is $609.37, closing in on the 200-day SMA of $615.72.

The weekly chart for AutoZone

Weekly technical chart showing the performance of AutoZone, Inc. (AZO) stockCourtesy of MetaStock Xenith

The weekly chart for AutoZone is positive but overbought, with the stock above its five-week modified moving average of $635.17 and having crossed above its 200-week SMA at $664.64 last week. This puts the stock above its “reversion to the mean” for the first time since the week of May 25, when the average was $647.18. The 12 x 3 x 3 weekly slow stochastic reading is projected to end this week at 90.47, up from 89.65 on Dec. 1. This momentum reading is well the overbought threshold of 80.00 and now represents what I describe as an “inflating parabolic bubble” with a reading projected to be above 90.00.

Given these charts and analysis, my trading strategy is to buy weakness to my monthly value level of $498.05 and to reduce holdings on strength to my annual risky level of $866.89. My quarterly pivot (or magnet) is $692.68. (For more, see: AutoZone Chosen by Region 4 Center as Parts Provider.)

Published at Mon, 04 Dec 2017 18:52:00 +0000

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Bank of America Rally Could Accelerate in 2018

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Bank of America Rally Could Accelerate in 2018

By Alan Farley | December 1, 2017 — 11:02 AM EST

Tax cut optimism and an expected December interest rate hike have lifted commercial banks to multi-year highs, in expectations of record profits through greater business activity and wider yield spreads. Bank of America Corporation (BAC) stock has attracted strong buying interest in this bullish wave, breaking out to a nine-year high in the upper $20s. More importantly, it has now opened the technical door to more rapid upside that could reach the upper $30s in the second half of 2018.

Commercial banks have already hit short-term overbought technical readings following a three-day vertical buying impulse, so risk-conscious market players may wish to stand aside right here and wait for an orderly pullback that tests new support. A decline that fills Bank of America’s Nov. 28 gap between $27.50 and $28 might do the trick, offering a low-risk entry ahead of a first upside target at $31.50. (See also: Bank of America Stock Breaks Out After Powell Testimony.)

BAC Long-Term Chart (1989 – 2017)

The stock topped out at a split-adjusted $13.75 in 1989 and sold off to $4.22 in 1990. It took nearly four years for the subsequent uptick to clear resistance at the prior peak, yielding a 1995 breakout that gathered substantial momentum into the July 1998 high at $44.22, when the Asian Contagion triggered a slide into the mid-$20s. The subsequent bounce failed to stir buying interest, yielding a series of lower lows into the first quarter of 2000, when it bottomed out in the upper teens.

A slow-motion recovery wave reached the 1998 high in 2003, ahead of a 2004 cup and handle breakout that generated mixed but positive price action into the November 2006 all-time high at $55.08. The tables then turned in a modest reversal that gathered hurricane force during the 2008 economic collapse, dropping to a 25-year low at $2.53, ahead of a quick upturn that stalled near $20 in the second quarter of 2010.

The stock spent more than six years testing that resistance level, finally breaking out after the November 2016 election and entering a powerful trend advance that stalled at $25.77 in March 2017. It completed a basing pattern at the 50-day exponential moving average (EMA) in September and turned sharply higher, posting new highs in October and again this week. This price action has finally cleared the .618 Fibonacci retracement of the dramatic sell-off wave between September 2008 and March 2009.

You may recall the massive September squeeze when U.S. Treasury Secretary Hank Paulson banned short sales in an effort to stabilize the troubled banking sector, but the politically motived move backfired, printing lower highs ahead of the final collapse. The stock has been retracing that selling wave for many years, finally mounting the critical .618 level in October 2017. In turn, this price action opens the door to the .786 retracement level at $31.50 and 100% retracement at $39.50. (For more, see: Short Goldman Sachs, Buy Bank of America: Bove.)

BAC Short-Term Chart (2016 – 2017)

A furious decline broke three-year support near $15 at the start of 2016, reaching a three-year low at $10.99 in February. It remounted the broken trading range in August, setting off a preliminary buying signal that came to fruition during November’s big breakout. Meanwhile, the price pattern since the deep low has drawn the outline of an Elliott five-wave advance, with the 2017 trading range marking the fourth wave consolidation, ahead of a fifth wave breakout that targets the .786 selloff retracement level in the low $30s. It also suggests that the stock will undergo a deeper correction following this final impulse. (To learn more, see: Elliott Wave Theory.)

The Bottom Line

Bank of America stock has rallied to a nine-year high in the upper $20s and could lift into the lower $30s in the first quarter of 2018, ahead of larger-scale upside that could eventually reach the September 2008 high near $40. (For additional reading, check out: These Sectors Benefit From Rising Interest Rates.)

Published at Fri, 01 Dec 2017 16:02:00 +0000

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Costco Stock Breaks Out After Strong November Sales

 

Costco Stock Breaks Out After Strong November Sales

By Justin Kuepper | November 30, 2017 — 12:50 PM EST

Costco Wholesale Corporation (COST) shares rose more than 3% on Thursday morning after the company’s November sales exceeded expectations. In a recent news release, Costco reported that net sales jumped 13.2% to $11.26 billion in November, with a 10.8% increase in comparable-store sales. Some of the strong performance was due to gasoline prices and currency swings, but even excluding these factors, comp sales rose nearly 8%.

Stifel Nicolaus analysts responded by raising their price target on Costco to $185.00, citing the strong comparable sales growth after Whole Foods’ new pricing strategy. Many analysts and investors had been concerned that Amazon.com, Inc.’s (AMZN) move into the grocery industry would cause a price war that hurt margins and market share. However, positive financial results from many grocers have helped alleviate these fears over the past few days. (For more, check out: Kroger Stock Breaks Out From 200-Day Moving Average.)

Technical chart showing the performance of Costco Wholesale Corporation (COST) stock

From a technical standpoint, the stock broke out from upper trendline and R2 resistance at around $173.49 earlier this week before extending its rally on Thursday. The relative strength index (RSI) moved to significantly overbought levels at 80.60, but the moving average convergence divergence (MACD) extended its move into bullish territory. Traders should maintain a bullish outlook on the stock given these factors.

Traders should watch for some consolidation above trendline support at around $175.00 over the coming sessions, especially because the RSI is firmly in overbought territory. If the stock breaks down below these support levels, traders should watch for a move to retest R1 support levels at $167.05 or the 50-day moving average at $164.83, but the strong fundamental performance makes this a less likely occurrence. (See also: Costco Could Break to New Highs.)

Chart courtesy of StockCharts.com. The author holds no position in the stock(s) mentioned except through passively managed index funds.

Published at Thu, 30 Nov 2017 17:50:00 +0000

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Why would a stock have no par value?

 

Why would a stock have no par value?

By Investopedia Staff | Updated November 30, 2017 — 5:06 PM EST

People often get confused when they read about the “par value” for a stock. One reason for this is that the term has slightly different meanings depending on whether you are talking about equity or debt.

In general, par value (also known as par, nominal value or face value) refers to the amount at which a security is issued or can be redeemed. For example, a bond with a par value of $1,000 can be redeemed at maturity for $1,000. This is also important for fixed-income securities such as bonds or preferred shares because interest payments are based on a percentage of par. So, an 8% bond with a par value of $1,000 would pay $80 of interest in a year.

It used to be that the par value of common stock was equal to the amount invested (as with fixed-income securities). However, today, most stocks are issued with either a very low par value such as $0.01 per share or no par value at all.

You might be asking yourself why a company would issue shares with no par value. Corporations do this because it helps them avoid a liability to stockholders should the stock price take a turn for the worse. For example, if a stock was trading at $5 per share and the par value on the stock was $10, theoretically, the company would have a $5-per-share liability.

Par value has no relation to the market value of a stock. A no-par-value stock can still trade for tens or hundreds of dollars. It all depends on what the market feels the company is worth. (For more about par values, see Bond Basics Tutorial.)

Published at Thu, 30 Nov 2017 22:06:00 +0000

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Boeing to Boost Dividend Next Month: Wells Fargo

Boeing to Boost Dividend Next Month: Wells Fargo

By Shoshanna Delventhal | November 29, 2017 — 6:29 PM EST

Aircraft manufacturer Boeing Co. (BA) has seen its shares gain a whopping 72.6% year-to-date (YTD), trading up 0.4% on Wednesday afternoon at $269.09. By comparison the S&P 500 has increased $17.2% over the same period. One team of analysts on the Street foresees the aerospace stock to continue reaping rewards for shareholders, forecasting a dividend increase likely to come before Christmas. (See also: Boeing Flies Toward Double-Digit Growth: Jefferies.)

Wells Fargo top aerospace analyst Sam Pearlstein and team expect the Chicago-based jet maker to boost its dividend by at least 10% to 15% before its next board meeting, slated for Dec. 11. Pearlstein highlights growing free cash flow thanks to higher 737 airliner production and cost reductions on the 787 Dreamliner program.

Growing Free Cash Flow

“With $10 billion in cash at the end of Q3 and free cash flow growth expected for several years, we believe Boeing can continue to support significant return of cash to shareholders,” wrote the Wells analyst in a note to clients.

Boeing has lifted its dividend for five consecutive years. The dividend hike expected by Pearlstein in December would result in a dividend yield of about 2.4%, compared to the S&P 500’s 1.9% yield. Boeing currently pays an annual dividend of $5.68 per share, yielding 2.1%. With the higher dividend, Wells estimates BA’s payout ratio would reach 49% to 52%. The investment firm also expects BA to expand its share buyback program.

BA stock has had a stellar year so far, surpassing General Electric Co. (GE) in terms of total market capitalization for the first time ever and leading the Dow Jones Industrial Average (DJIA). Last week, a team of analysts at Jefferies offered a bullish outlook for the aircraft leader, foreseeing earnings per share growth in the double-digit rate based on “robust demand” for its commercial aircrafts. (See also: Airbus, Boeing Land Over $75B in Aircraft Orders.)

Published at Wed, 29 Nov 2017 23:29:00 +0000

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U.S. economy posts best growth in three years

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By Buntysmum from PixabayU.S. economy posts best growth in three years

Fed pick: Banks are not too big to fail
Fed pick: Banks are not too big to fail

The U.S. economy picked up more momentum last summer than originally thought.

It grew 3.3% on an annual basis between July and September, according to revised numbers published Wednesday by the Commerce Department. The initial reading on third quarter growth was 3.0%.

That marks the best quarter of growth since in 2014 when the economy grew 5.2% during the same period. An increase in exports, as well as a pick up in business and consumer spending, contributed to the improved growth.

President Trump promises to get U.S. economic growth for an entire year up above 3%, something that hasn’t happened since 2005. Economists say the U.S. will likely not achieve 3% growth for 2017 because the first three months of the year were sluggish. First quarter growth was 1.2%. For the first nine months of this year, the U.S. is averaging 2.5% growth.

The Federal Reserve forecasts that U.S. growth will hover around 2% for the foreseeable future. A mix of factors, such as sluggish wage and productivity growth, along with millions of Baby Boomers leaving the workforce to retire, have held back economic growth since the Great Recession ended in 2009.

Still, the U.S. economy is on sound footing. Unemployment is 4.1%, the lowest since 2000. Jobs have been added for 84 consecutive months, the longest streak on record.

Growth has been slow but steady since 2009, one of the longest expansions in history. Wage growth and inflation haven’t risen as many economists expected they would. The lack of both is considered an economic mystery.

Published at Wed, 29 Nov 2017 15:29:40 +0000

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Twitter Stock: Breakout or Double Top?

 

Twitter Stock: Breakout or Double Top?

By Justin Kuepper | November 22, 2017 — 3:05 PM EST

Twitter, Inc. (TWTR​) shares have risen more than 7% since the beginning of the week in what appears to be a technically driven breakout following a deal with Bloomberg.

Last week, Axios reported that Bloomberg would bring a news network to the social media website with six partnerships averaging $1.5 million to $3 million in price. The first 24-hour news program on the Twitter platform is designed to help Bloomberg better monetize Twitter, with the support of The Goldman Sachs Group, Inc. (GS), CA Technologies (CA) and AT&T Inc. (T) as founding partners. The move could open the door to similar deals with other media companies.

In addition to this partnership, Twitter has been making significant changes to its platform to remain relevant compared with other social media platforms. The company announced that it would double its 140-character limit to attempt to increase followers and engagement after a beta test that lasted throughout September. Last quarter, the company also announced strong financial results that suggest its turnaround is gaining traction. (See also: Twitter Buying Volume Predicts Long-Lasting Bottom.)

Technical chart showing the performance of Twitter, Inc. (TWTR) stock

From a technical standpoint, the stock rebounded from pivot point support at around $19.79 to retest upper trendline resistance at around $22.30. The relative strength index (RSI​) moved to overbought levels at 72.39, but the moving average convergence divergence (MACD​) experienced a bullish crossover after a period of consolidation. Traders should remain cautious on the stock given the lofty RSI reading and the key resistance levels ahead.

Traders should watch for a breakout from trendline and R1 resistance at $22.80 to R2 resistance at $24.97. If the stock fails to break out, traders should watch for a move to pivot point support at $19.79. A breakdown from these levels could validate a double top pattern and signal a move down to lower trendline and S1 support levels at $17.61. Traders should also keep an eye on the volume behind these moves, which has been relatively low during the rally. (For more, see: Twitter Surges on Q3 Results: Log in to These ETFs.)

Chart courtesy of StockCharts.com. The author holds no position in the stock(s) mentioned except through passively managed index funds.

Published at Wed, 22 Nov 2017 20:05:00 +0000

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Top And Bottom Performing Stocks For Week #47

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It is Sunday afternoon and that means we get to review the performance of last week’s historical top and bottom stock symbols in the S&P 500. As you may recall these symbols are the result of parsing a database containing over 50 years worth of statistical performance data. The idea is to extract the prospective top ten winners and losers of the coming week purely based on historical statistics. The result is then sorted by liquidity and any symbol that is scheduled to report earnings or pass ex-dividend is being excluded.

How To Trade Along

Although being no guarantor of success, the long and short candidates posted here each week are intended to perform along their respective historical bias. One way of trading along would be to simply create a small one-week portfolio by buying the long candidates and selling the short candidates on Monday morning shortly after the open. There are no official stops or targets and all transactions are reversed Friday afternoon right before the bell.

For anyone who wants to keep track I have created a new WP category that allows you to pull all pertinent posts up to date. Eventually I’ll be putting together a summary spreadsheet once we have accumulated sufficient stats.

Results For Week # 46

It seems we are back on track as the last week netted us 19.72 relative percent, which means the return of the overall portfolio of 20 stocks is 1/20 of that, or 0.986%. Kudos to phantomflash for correcting my twisted profit calculation 😉

Long Profits: FTR=2.81, MRK=-0.5, ODP=0.31, LUV=2.28, WBA=0.37, MNST=1.65, IBM=-0.13, HRL=2.44, FLO=5.78, CPB=4.85

Long Profits Total: 19.86%

Short Profits: AAPL=2.59, C=1.27, MU=-3.08, JPM=-0.65, KEY=-3.8, ABX=-0.64, MRO=3.65, HL=3.96, NEM=-1.94, BBT=-1.5%

Short Profits Total: -0.14%

Combined Profits Total: 19.72%

Published at Sun, 19 Nov 2017 18:14:20 +0000

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Strong Economic Data Fail to Offset Profit Taking in Stocks

 

Strong Economic Data Fail to Offset Profit Taking in Stocks

By Justin Kuepper | November 18, 2017 — 11:22 AM EST

The major U.S. indexes were mixed over the past week. While retail sales hit expectations with a 0.2% jump in October, the gains were largely due to auto purchases in hurricane-hit states. The good news is that industrial production exceeded expectations with a 0.9% increase, and most of that was due to a strong 1.3% gain in manufacturing. The housing market also experienced strong gains, with more housing starts in October than expected.

International markets were lower over the past week. Japan’s Nikkei 225 fell 1.25%; Germany’s DAX 30 fell 1.02%; and Britain’s FTSE 100 fell 0.67%. In Europe, Angela Merkel’s party posted its weakest election results since 1949 as the far-right Alternatives for Germany part gained traction. In Asia, Moody’s upgraded India’s bond ratings, saying that the government has made solid progress in both economic and institutional reform. (See also: India’s Modi Hopes Tax Reform Will Convince US CEOs to Invest.)

The SPDR S&P 500 ETF (ARCA: SPY) fell 0.09% over the past week. After reaching all-time highs near R1 resistance at $259.60 earlier this month, the index moved lower to retest pivot point support at $255.44 this week before rebounding. Traders should watch for a breakout from R1 resistance at $259.60 to trendline resistance or a move lower to trendline support. Looking at technical indicators, the relative strength index (RSI) moderated to neutral levels at 56.67, while the moving average convergence divergence (MACD) remains in a bearish downtrend dating back to earlier this month.

Technical chart showing the performance of the SPDR S&P 500 ETF (SPY)

The SPDR Dow Jones Industrial Average ETF (ARCA: DIA) fell 0.44% over the past week, making it the worst performing major index. Since reaching all-time highs earlier this month, the index has moved lower to bounce along trendline support. Traders should watch for a rebound to R1 resistance at $237.04 or a breakdown to pivot point support at $230.17. Looking at technical indicators, the RSI is neutral at 57.76, but the MACD remains in a downtrend dating back to earlier this month.

Technical chart showing the performance of the SPDR Dow Jones Industrial Average ETF (DIA)

The PowerShares QQQ Trust (NASDAQ: QQQ) rose 0.18% over the past week. After moving off of R1 resistance at $154.70 earlier this month, the fund moved higher to retest those levels this week. Traders should watch for a breakout to upper trendline resistance at $156.00 or a move lower to retest trendline support at around $151.00. Looking at technical indicators, the RSI appears a bit lofty at 64.34, but the MACD could be on the verge of a bearish crossover that could signal more downside ahead. (For more, see: Big Tech Stocks Poised to Rise in 2018 on Earnings.)

Technical chart showing the performance of the Powershares QQQ Trust (QQQ)

The iShares Russell 2000 Index ETF (ARCA: IWM) rose 1.28% over the past week, making it the best performing major index. After rebounding from S2 support at $145.59, the index rebounded to retest its pivot point at $149.05 this week. Traders should watch for a breakout to trendline and R1 resistance at $150.89 or a move lower to retest S2 support at $145.59. Looking at technical indicators, the RSI appears neutral at 55.22, but the MACD could be on the verge of a bullish crossover after a prolonged downtrend.

 IWM)

The Bottom Line

The major indexes were mixed over the past week, but technical indicators have moved off of overbought levels. Next week, traders will be closely watching many economic indicators, including existing home sales on Nov. 21 and FOMC​ minutes on Nov. 22. The market will also be keeping a close eye on geopolitical events in Germany and the United States that could influence the markets. (For additional reading, check out: US Stocks Poised for 10% Holiday Drop: Raymond James.)

Note: Charts courtesy of StockCharts.com. As of the time of writing, the author had no holdings in the securities mentioned.

Published at Sat, 18 Nov 2017 16:22:00 +0000

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