I was off having a nice time this week and mostly when I bothered to tune in to the news or CNBC I was only thinking, gee I’m glad I’m missing this!
When I left we were worried about Kim Jong Il but I’ve been passing by TV’s tuned to giant fire balls that have nothing to do with him and the fear factor (now somewhat justified) is driving oil to record levels, likely to be followed by gold and other metals.
Asia continues to plunge, dropping another point or two today while Europe looks weak. We are back in the sort of situation we had back in mid-June where we would rather see a huge drop to a real bottom than another weak recovery. This time the global situation is obviously far worse and we are still way above Jun 14 lows: Dow 10,698, S&P 1,219, NYSE 7,708.
The Nasdaq beat its June low of 2,065 yesterday and should give us the first turn signal (if it does at all) but the SOX continue on an uninterrupted road to hell that has as much chance of accelerating down as it does of turning up. http://stockcharts.com/gallery/?%24sox
Putting additional topspin on the Nasdaq is news that the California District Attorney (overseeing Silicon Valley) is launching a task force to investigate options backdating. This is starting to look like something almost everyone was doing, with over 50 companies now under investigation so get ready for more headlines there. Also bad for tech is a price-fixing probe aimed at chip makers.
The key for watching this market is going to be how middling earnings are received. GE was pretty exactly in line so we will see how they get treated today. Builders will take yet another hit (props to the Prof) as DHI lowers guidance yet again, taking a 10% hit overnight.
I am baffled by the spotty performance of the oil patch, especially the drillers as oil prices continue to climb. Apparently traders think this spike is temporary and, of course, $4 gas may finally lead to demand destruction but I want to see how oil handles $80 before I bet against that sector. Since the first $75 oil spike on 4/24 most of the oil patch has traded down with drillers like PTEN down 20%. APC has been hammered even though their purchase of KMG…
This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible. Feel free to contact me directly at email@example.com with any questions.
Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts. After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.) Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.
Three more banks have been permitted to import gold to China, as IBTimes notes, the country redoubles its efforts to attain pricing power of the commodity. The move, which brings the number of firms allowed to import gold into China to 15, comes ahead of the SGE launching its Yuan settled bullion exchange, in hopes of replacing the now discredited London Fix and become a price-discovery center. Shanghai Pudong Development Bank and Chi...
It was more of the same from the Semiconductor index: a solid gain which took the index ever closer to 652 resistance. All of which is helping the Nasdaq and Nasdaq 100 maintain their push to all-time highs. Technicals for the Semiconductor Index are net bullish. Weakness will offer itself as a buying opportunity, particularly at the breakout line and/or 50-day MA. Risk can be measured from the 38.2% fib retracement at $616.25.
The Nasdaq took a small loss, but 4,485 should be strong support. Losses back to this level will also offer a buying opportunity. A decisive undercut of 4,485 would switch to a 'bull trap', but that is not today's problem. ...
It’s an ugly day for investors in Elizabeth Arden, with shares in the name losing roughly one-quarter of its value overnight after the retailer of beauty products and fragrances reported a wider than expected loss and sales that were lower than analysts anticipated. Shares in the name are down more than 23% in the final hour of trading to stand at $14.95.
On Friday of last week we wrote a short note about put option activity on the stock...
As many investors enjoy the final weeks of summer, some optimistic bulls seem to be positioning themselves well ahead of Labor Day in anticipation of a fall rally. Indeed, last week’s action was impressive. After only a mere 4% correction, investors continued to brush off the disturbing violence both at home and abroad, and they took the minor pullback as their next buying opportunity. But was that really all the pullback we’re going to get this year? I doubt it. But I also believe that nothing short of a major Black Swan event can send this market into a deep correction.
In this weekly update, I give my view of the current market environment, offer a technical analysis of the S&P 500 chart, review our weekly fundamentals-based SectorCast rankings of the ten U.S. business sectors, and then ...
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Well PSW Subscribers....I am still here, barely. From my last post a few months ago to now, nothing has changed much, but there are a few bargins out there that as investors, should be put on the watch list (again) and if so desired....buy a small amount.
First, the media is on a tear against biotechs/pharma, ripping companies for their drug prices. Gilead's HepC drug, Sovaldi, is priced at $84K for the 12-week treatment. Pundits were screaming bloody murder that it was a total rip off, but when one investigates the other drugs out there, and the consequences of not taking Sovaldi vs. another drug combinations, then things become clearer. For instance, Olysio (JNJ) is about $66,000 for a 12-week treatment, but is approved for fewer types of patients AND...
I just wanted to be sure you saw this. There’s a ‘live’ training webinar this Thursday, March 27th at Noon or 9:00 pm ET.
If GOOGLE, the NSA, and Steve Jobs all got together in a room with the task of building a tremendously accurate trading algorithm… it wouldn’t just be any ordinary system… it’d be the greatest trading algorithm in the world.
Well, I hate to break it to you though… they never got around to building it, but my friends at Market Tamer did.
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