Guest View
User: Pass: | become a member
Sabrient

To see Sabrient's Gold Content, click here.




Sector Detector: Bulls remain unfazed by borderline Black Swans

Courtesy of Sabrient Systems and Gradient Analytics

Despite a highly eventful week in the news, not much has changed from a stock market perspective. No doubt, investors have grown immune to the daily reports of geopolitical turmoil, including Ukraine vs. Russia for control of the eastern regions, Japan’s dispute with China over territorial waters, Sunni vs. Shiite for control of Iraq, Christians being driven out by Islamists, and other religious conflicts in places like Nigeria and Central African Republic. But last Thursday’s news of the Malaysian airliner tragically getting shot down over Ukraine, coupled with Israel’s ground incursion into Gaza, had the makings of a potential Black Swan event, which in my view is the only thing that could derail the relentless bull march higher in stocks.

Nevertheless, when it became clear that the airliner catastrophe was most likely a mistake born of incompetence among the rag-tag rebels rather than the start of an orchestrated terrorist attack on the West, I fully expected a recovery on Friday, which we got. And so the upward march of stocks continues.

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 offer up some actionable trading ideas, including a sector rotation strategy using ETFs and an enhanced version using top-ranked stocks from the top-ranked sectors.

Market overview:

Thursday’s brief scare gave the S&P 500 its first single-day decline of more than 1% in three months, while the CBOE Market Volatility Index (VIX) surged 32%, which was its biggest single-day percentage increase since April 2013. Moreover, NYSE volume increased 20% over its daily average for the month. Friday’s bounce saw the Dow Jones Industrials Index regain the 17,000 level, but the Wilshire 5000 Total Market Index was not able to get back above 21,000. Also, both the Dow and S&P 500 are encountering resistance as they re-approach their 52-week highs, and the Russell 2000 small caps are facing resistance from its 50-day simple moving average. I still think there may be more downside in store before summer is over.

Continued strength in U.S. stocks is being driven by expectations of continued low interest rates, a big jump in GDP growth, and improving corporate earnings. Indeed, all major central banks are…
continue reading





Sector Detector: Will earnings season provide the next catalyst for stocks?

Courtesy of Sabrient Systems and Gradient Analytics

Scott MartindaleMore unnerving conflicts around the globe have flared up, but as usual, U.S. equity investors have given it nary a yawn as they seem to have become pretty much numb to the steady stream of unwelcome news, particularly out of the Middle East. Now we enter the summer version of earnings season. Although sell-side expectations have been reduced from the previous lofty forecasts coming out of the dismal Q1 numbers, we’ll see if earnings reports can catalyze a renewed bullish march higher, or a long-feared bearish correction, or perhaps a resumption of the sideways-to-upward summer consolidation that we have seen so far.

Going into Q2 earnings season, projections are for the strongest in several years due to resurgent GDP growth, the highest level of stock buybacks since 2007, and a weak U.S. dollar (while helps multinationals and commodity-oriented companies. Last week, Alcoa (AA) kicked off things with a strong report, which bodes well for the Industrial sector. This week, some of the biggest Technology sector companies will report, including Intel (INTC), Yahoo (YHOO), eBay (EBAY), and Google (GOOGL).

The other week, a patriotic pre-Independence Day holiday push took the Dow Jones Industrials Index above 17,000, the Wilshire 5000 Total Market Index above 21,000, and the S&P 500 to slightly above the upper trend line of its long-standing bullish ascending channel that has been in place for nearly three years. However, as I predicted last week, stocks lost their momentum in the post-holiday summer trading, and I still think there may be more downside in store before summer is over.

The Federal Reserve has signaled that October is likely to mark the end of their quant easing program, and eventually they will need to begin raising short-term rates and shrinking their balance sheet of those bonds they’ve accumulated. Nevertheless, the 10-year Treasury bond continues to remain strong with a low yield of 2.54%, which is back down to where it was a couple of weeks ago before a brief inflation scare nudged it up a smidge last week. Persistently low yields continue to push investors into equities in their search for both yield and total return. As unemployment drops, there eventually will be wage inflation pressures, which is a first step toward long-anticipated price inflation. So, it seems to many observers that there is greater risk in holding…
continue reading





Sector Detector: Summer slog likely to keep a lid on further stock gains

Courtesy of Sabrient Systems and Gradient Analytics

Stock investors entered the Fourth of July holiday on a high note, pushing the Dow Jones Industrials Index above 17,000 and the Wilshire 5000 Total Market Index above 21,000, and even pushing the S&P 500 to a smidge above the upper trend line of its long-standing bullish ascending channel that has been in place for nearly three years. However, with the Independence Day cheer behind us, persistently overbought technical conditions, and two months of summer doldrums ahead until the Labor Day holiday, I don’t think stocks are likely to muster much in the way of further progress over the near term. This may give bears a chance to make their long-stymied move.  Although bulls should be able to maintain the upper hand in the longer term, I expect bears will finally have their window of opportunity to drive prices down (at least a little) before summer is over.

Last week I reported that among the ten U.S. business sectors, defensive and income-oriented Utilities displayed the best first-half performance. But last week was harsh on Utilities, allowing Energy to become the new leader, while Utilities fell into a virtual dead-heat with Healthcare and Technology for second place. Basic Materials also has shown good strength of late. This recent action might suggest some early signs of positioning for rising inflation and interest rates on the horizon.

Although the 10-year Treasury bond continues to remain strong with a low yield of 2.66%, this is actually a bit of a spike from the prior week’s close of 2.53%. Nevertheless, some top bond fund managers are still predicting that the 10-year yield could fall as low as 2.2% this year.

While the CPI is showing no signs of inflation, there’s no doubt that healthcare and housing costs are rising. But with the labor force participation rate on a downtrend and capacity utilization still relatively low, wage pressures and GDP will gradually rise. As a result, assuming the Fed starts raising interest rates by the end of next year, some (like Guggenheim Partners) are predicting 10-year Treasury yields to approach 4% over the next few years. Much of this capital should rotate into equities.

The CBOE Market Volatility Index (VIX), a.k.a. fear gauge, continues on its slow trek toward the depths of single digits, closing the short week on Thursday at 10.32.…
continue reading





Sector Detector: Mid-year mark finds eager bulls seeking renewed traction

Courtesy of Sabrient Systems and Gradient Analytics

Scott MartindaleStocks continue to hold up like troopers even though bulls have lost some traction, perhaps due to a combination of the summer doldrums and overbought technical conditions that have them biding time until the next setup for a run at new highs. To be sure, bears are AWOL and missing their opportunity to create some fear and ignite a correction. So, with little in the way of a catalyst in either direction at the moment, bulls remain in the driver seat.

As we hit the mid-year mark this week, a few things are particularly notable. First almost everything is up at least a little bit, on a year-to-date basis. Gold began the year on a comeback tear, but hit a wall around mid-March and has floundered about since then. Still, after a June rally, gold is the top performing asset class year-to-date, up nearly +10%. U.S. large cap stocks (as measured by the S&P 500) are up more than +7%. Corporate bonds and NASDAQ stocks aren’t too far behind, followed by emerging markets and international developed markets. Even small caps (Russell 2000) staged a nice rally in June to get overall performance above +2%. Bringing up the rear are government bonds. But everything is positive.

The 10-year Treasury bond continues to confound many economists by holding up strong, with its yield languishing around 2.53%. Some experts are now predicting it to fall to as low as 2.2% in the second half of the year, which should continue to push income-hungry investors into dividend-paying equities.

Among the ten U.S. business sectors, income-oriented Utilities continues to display the best performance year-to-date, up about +15.5%, and REITs (which are also income-oriented) are right there with them. Energy has been quite strong recently, overtaking Healthcare for second place. Technology (which has consistently ranked at the top of our fundamentals-based sector rankings) has been coming on strong and gradually catching up with Healthcare, while Consumer Discretionary and Telecommunications (which have consistently ranked at the bottom of our rankings) are the worst performers year-to-date.

Moreover, the CBOE Market Volatility Index (VIX), a.k.a. fear gauge, continues to languish near its lows, closing Friday at 11.26. Again, some observers are predicting single digits for the VIX, while others insist that the extreme oversold conditions are ripe for reversion to the mean sometime this summer,…
continue reading





Sector Detector: Stocks cruise right along, whistling past the graveyard

Courtesy of Sabrient Systems and Gradient Analytics

U.S. stocks just continue to cruise right along, although investors seem to be displaying a healthy level of caution, looking over their shoulders as they whistle past the graveyard and bet on ongoing improvement in corporate earnings and economic growth. Despite extremely overbought technical conditions and regional hot spots that may ultimately threaten global economic recovery, investors seem undeterred. Indeed, all major central banks are now onboard the liquidity bandwagon, and although bonds have not sold off as many expected (to create a Great Rotation into equities), most income and total return-seeking investors in the U.S. see little in the way of attractive alternatives to equities.

The economic data continues to indicate improvement in the U.S. economy. For example, the number of job openings waiting to be filled in the United States rose in April by 289,000 to 4.5 million, which is the highest in nearly seven years. This bodes well for an imminent fall in the unemployment rate. Also, April retail sales were revised upward to +0.5%.

Furthermore, the global economy seems to have the wind at its back, thanks at least in part to central banks around the world providing a sea of liquidity by printing money. The scary side of this is that when the next recession eventually arises, all of these central banks will be low in ammunition to fight it. Nevertheless, for the near term, it seems that all is well for U.S. stocks, even though fears of a major crisis continue to push much of the global liquidity that is being printed into U.S. Treasuries in a flight to quality and safety. The 10-year Treasury yield remains quite low and may yet fall further.

With economies in Europe and the U.S. improving, China has been able to grow exports and expand its trade balance. In addition, China has enacted a number of policies to support the housing market and overall economic growth. All of this seems to have staved off the brewing crisis there.

Of course, there is no free lunch, and Iraq has again turned into a quagmire (perhaps predictably and inevitably, given its long history of Sunni/Shiite discord), replacing the Russian/Ukraine conflict as the hot spot that could ultimately pose real threats to global security, oil prices, and economic recovery. But a Wall of Worry is important to…
continue reading





Sector Detector: Bulls revel in the new normal, while bears lie in wait

Courtesy of Sabrient Systems and Gradient Analytics

Scott MartindaleAfter its long-awaiting breakout of the 1900 level the other week, the S&P 500 gained another +1.3% last week alone, but this double-low progression as I call it — i.e., on extremely low volume and with persistently low volatility — is worrisome. With the 2000 level now in sight, there still remains a dearth of bullish conviction, and although the technical picture remains quite extended and overbought, there is no sign yet of bearish action to produce the elusive correction that is now so overdue that bears seem to have almost given up on it — for now. In fact, we are seeing short covering and a falling put/call ratio. Some market commentators are saying that market conditions are reminiscent of the mid-1990s. We haven’t seen a real correction in quite some time. So, is this the proverbial new normal?

History tells us that when everyone is bullish the market is near a top. But with volume low and many still underinvested and waiting for an entry point, all these indications of bullish sentiment don’t necessarily mean that everyone has already put all their money to work. So, the market can and likely will go higher. It just doesn’t normally go up in a straight line as it has done. Some backing and filling is normal and healthy — and preferable.

The CBOE Market Volatility Index (VIX), a.k.a. fear gauge, closed last week at 10.73, which set another new 52-week low. Although some observers are predicting single digits for the VIX, the greater likelihood is a mean reversion sometime soon, which could bring it back up to test the 15 threshold once again.

The 10-year yield remains below 2.60% and may yet fall further. This is at least partly because of ECB monetary stimulus to stave off the threat of disinflation in Europe. Moreover, as I mentioned last week, the flattening yield curve here in the U.S. is also a signal that investors believe the Fed cannot raise rates without tanking the economy. However, others are now opining that the despite the zero-interest rate policy, there is not much lending and borrowing for capital expenditures and growth. Rather, they say that the free money is being used for generating low-risk trading profits or for buying back stock to prop up EPS valuations, creating a troubling asset bubble…
continue reading





Sector Detector: Stocks confirm tepid breakout, but on ultra-low volume and volatility

Courtesy of Sabrient Systems and Gradient Analytics

Scott MartindaleWell, it’s official. The old adage about selling in May didn’t apply this year. Instead, larger-cap, higher-quality, and value-oriented stocks continued to lead the market higher. The S&P 500 gained +2.1% during the month and confirmed its tentative technical breakout from the prior Friday with steady progress last week. However, it was tepid at best during the holiday-shortened week, and a somewhat concerning ‘double-low’ confirmation — i.e., on extremely low (and decreasing) volume and with a backdrop of persistently low volatility.

The CBOE Market Volatility Index (VIX), a.k.a. fear gauge, closed last week at 11.40, after setting yet another new 52-week low moments earlier. Although some observers are predicting single digits for the VIX, the greater likelihood is a mean reversion in the form of a spike higher. However, the VIX is not a timing tool, so it could stay low for some time before eventually going higher.

Among the ten U.S. business sectors, defensive sector Utilities is still the clear leader year-to-date, up nearly +14% after a strong showing during last two weeks of May. Energy and Healthcare are in a virtual tie for second place YTD. So, the top three are largely defensive sectors, which doesn’t feel particularly bullish in the traditional sense. However, Technology is making an effort to join the leaders, and it was quite strong during May, up over +3.5%. Consumer Services/Discretionary remains the laggard, and Telecommunications also has been weak. Both of these sectors have consistently ranked at the bottom of our fundamentals-based SectorCast rankings.

Going hand-in-hand with the outperformance of defensive sectors is the low (and falling) yield in the 10-year Treasury bond, which indicates that global capital continues to flow into the safety of U.S. Treasuries. The 10-year yield has now dropped below 2.50% and seems destined to fall further, despite prevailing expectations of the inevitability of higher rates among most of the financial community. In fact, I have read some compelling arguments that we are stuck indefinitely in a low interest rate environment, as the Fed cannot raise short-term rates without tanking the economy. And that’s what the flattening yield curve is signaling to investors.

With forward valuations in equities somewhat elevated but not egregiously so, and with low interest rates encouraging corporations to issue debt in order to continue their stock buybacks, and with central banks…
continue reading





Sector Detector: Breakout or another bluff? Bulls seeking confirmation this week

Courtesy of Sabrient Systems and Gradient Analytics

Scott MartindaleStocks ended last week on a high note, closing a smidge above strong resistance at 1900 for the S&P 500, which set a new closing high for the large-cap index, albeit on low pre-holiday volume. With the Memorial Day holiday giving us a short week of trading, all eyes are on voting in Ukraine, where a decisive win for billionaire business tycoon Petro Poroshenko seems assured. The only question is how Russia and the breakaway eastern regions will respond this week.

Meanwhile, over in Western Europe, surprising election strength from anti-EU, anti-euro, anti-austerity, anti-immigration, anti-Islam, and anti-Semitic parties from the far right and far left all won seats in countries like France, Britain, Greece, Denmark, Holland, and Hungary.

Among the ten U.S. business sectors, defensive sector Utilities is still the clear leader year-to-date, up nearly +10%, but it has pulled back significantly during the month of May.  Energy and Healthcare are now in a dead heat for second place YTD, and Technology is finally making its move. Tech was quite strong last week, up about +2.5%. Consumer Services/Discretionary remains the laggard, but even it is approaching the breakeven mark YTD.

Rather than bond prices falling, the 10-year Treasury yield remains at a low 2.54% and still shows no inclination whatsoever to rise. As the Federal Reserve tapers its bond purchases, there has been no widely-expected Great Rotation out of Treasuries. In fact, PIMCO bond guru Bill Gross is actually predicting that long-term yields will fall even further, primarily because the all-time high in global debt will keep global growth quite slow over the next few years. The yield curve is already flatter than most observers expected it would be, and Bill Gross is expecting it to get even flatter. As a result, he also thinks it will be several more years before the Fed can start to raise short-term rates. And of course, low long-term interest rates support higher equity valuations because the comparative earnings yield threshold is lower.

The CBOE Market Volatility Index (VIX), a.k.a. fear gauge, closed last week at 11.36, which is a new 52-week low. It continues to creep downward, indicating investor complacency about risk in their stock holdings — and perhaps an expectation of a low-return, low-volatility trading environment for the foreseeable future. As it continues to move lower, some observers are predicting…
continue reading





Sector Detector: False breakout just another tease, but fundamental rankings are bullish

Courtesy of Sabrient Systems and Gradient Analytics

Scott MartindaleRather than a Great Rotation from bonds into equities, the rotation instead has been from growth into value. Among the ten U.S. business sectors, uber-defensive sector Utilities is still the clear leader year-to-date, up more than +10%, followed by Energy and Healthcare. Healthcare and Materials were the leaders last week. Consumer Services/Discretionary remains the clear laggard YTD. Moreover, rather than bond prices falling, the 10-year Treasury yield has fallen even further to 2.52%, further indicating a flight to safety.

Of the 470 companies from the S&P 500 that have reported so far, nearly 70% have beaten estimates and 10% have met estimates. Defensive sectors Utilities and Telecom have shown the strongest Q1 earnings growth.

Although the strong U.S. economic fundamentals theoretically should be pushing interest rates up, macro and technical drivers have prevented it. Of course, this is good news and the best of both worlds, as low interest rates (without massive stimulus programs) and improving fundamentals bode well for economic growth and corporate earnings growth — as well as stock prices.

The CBOE Market Volatility Index (VIX), a.k.a. fear gauge, closed last week at 12.44. It continues to creep downward, and remains firmly below the 15 threshold, indicating investor complacency about risk in their stock holdings.

ConvergEx reports that average sector correlations for the 10 business sectors of the S&P 500 have been averaging 79% recently, which is much lower than the 95% correlations displayed during the height of the risk-on/risk-off days of the past few years. Top-performing Utilities is a low 21%, while emerging markets clocks in at just 38%.

It seems like an opportune time for Sabrient to launch this year’s Forward Looking Value portfolio next month.

SPY chart review:

The SPDR S&P 500 Trust (SPY) closed Friday at 188.05, which is right about where it closed the previous week, and the week before that. Overhead resistance at 190 proved too strong, and price remains smack dab in the middle of the long-standing rising bullish channel. After briefly showing a desire to break out and display a triple-top buy signal, it turned out to be a false breakout. SPY has now returned back to its neutral sideways channel between roughly 187 and 189. Oscillators RSI, MACD, and Slow Stochastic remain in neutral, still giving no indication of direction. However, Bollinger Bands…
continue reading





Sector Detector: Stocks stuck in neutral as both sides seek a directional catalyst

Courtesy of Sabrient Systems and Gradient Analytics

Scott MartindaleThe technical picture for stocks has shifted from bearish into neutral, and our fundamentals-based sector rankings appear to have moved from bullish to neutral, as well. Thus, caution remains the order of the day until either the bulls or bears can find a catalyst — and enough recruits — to move the ball in their direction.

Notably, there has been a rather significant correction in higher-risk growth stocks and small caps that has not translated into a correction for the broader market. High-P/E and momentum darlings have been slammed. The Russell 2000 small cap index remains well below its important 200-day SMA, and the NASDAQ might test its 200-day soon, too. But the larger S&P 500 and Dow Jones stocks have been holding up just fine as the capital apparently has rotated into defensive and higher quality stocks, offering support to the overall market (e.g, the Wilshire 5000) despite the weakness in the higher-risk segments.

Among the ten U.S. business sectors, Financial and Consumer Goods/Staples were the winners last week. However, on a year-to-date basis, Utilities is still the clear leader, up about +12.5%, followed by the steadily surging Energy at about +7.5%. Healthcare remains in third place, but it has fallen a few percentage points since early March when it held the lead, and is now below +5% YTD. Consumer Services/Discretionary is the clear laggard, and in fact it is the only sector in the red YTD.

The CBOE Market Volatility Index (VIX), a.k.a. fear gauge, closed last week at 12.92, which is right where it closed the previous week. It remains firmly below the 15 threshold, indicating investor complacency about risk in their stock holdings. Although it showed some signs of life last week, VIX remains oversold and could spike up at any time, which would be bearish for stocks.

Despite the Fed’s tapering, its balance sheet has nonetheless ballooned to more than $4.2 trillion and is still growing, which has pushed return-hungry capital into equities. Improved jobs growth, strong manufacturing and services surveys, good data from housing, retail sales, consumer spending, consumer confidence, and the expectation of better earnings growth coming out of the harsh winter — all of which point to a strengthening economy. Of course, as I have said many times, earnings growth will rely upon actual top-line revenue growth from…
continue reading





 

Help One Of Our Own PSW Members

"Hello PSW Members –

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 jennifersurovy@yahoo.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.

http://www.youcaring.com/medical-fundraiser/help-get-shadowfax-out-from-the-darkness-of-medical-bills-/126743"

Thank you for you time!

 
 

Chart School

Getting Technical: Weekend Update

Courtesy of Doug Short.

Here's the latest weekend update from Serge Perreault, a Chartered Professional Accountant and market technician located near Montreal, Canada. Serge has been following the U.S. market in a series of weekly charts. Here is his update on the S&P 500.

This week, the S&P 500 broke a resistance but closed the week below it, thus remaining neutral, on mixed momentum and on above-average volume.

Click for a sharper image

Note: For newcomers to technical analysis, here are brief explanations for the two key indicators that ...



more from Chart School

Zero Hedge

Settlements and Fines from TBTF Institutions Since the Crisis

Courtesy of ZeroHedge. View original post here.

Submitted by StalingradandPoorski.

Let's take a look at the amount of
settlements/fines from various banks and financial institutions around the world
since the crisis. There are probably a lot of settlements/fines I have missed, frankly the amount below is already staggering, so this is a very rough estimate. Some perspective, most of these individual banks have now paid more in fines then the value of most countries GDP's. Total tally from the listed Fines/Settlements below is $163,007,800,000. Reminder: Jail time served by any board members or CEO's of the following TBTF list=0. #FreeCorzine. Meanwhile, Supreme Leader Obama is going on...



more from Tyler

All About Trends

Mid-Day Update

Reminder: David is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

more from David

Phil's Favorites

France Unemployment New High, Output Down 15th Month; Prices Drop 27th Month; Activity Up in Peripheral Europe; Outlook for Germany

Courtesy of Mish.

The grim economic news from France keeps piling up. Today, Europe Online reports Number of Unemployed in France Hits New High.
The number of unemployed people in France has hit a new high as the country grapples with the fallout of the financial crisis and a sluggish eurozone recovery, the Labour Department reported Friday.

At the end of June, there were 3.398 million people who were registered as being without a job in the eurozone‘s second-largest economy - 0.3 per cent more than in the previous month.

Compared to June of last year, the number of jobless was up 4 per cent.

In a glimmer of positive news, the number of unemployed youth was down compared to last year: those under 25 without a job d...



more from Ilene

Digital Currencies

BitLicense Part 1 - Can Poorly Thought Out Regulation Drive the US Economy Back into the Dark Ages?

Courtesy of Reggie Middleton.

An Op-Ed piece penned by Veritaseum Chief Contracts Officer, Matt Bogosian

This past weekend (despite American Airlines' best efforts), Reggie and I made it to the Second Annual North American Bitcoin Conference in Chicago. While there were some very creative (and very ambitious) ideas on how to try to realize the disruptive Bitcoin protocol, one of the predominant topics of discussion was New York Superintendent of Financial Services Benjamin Lawsky's proposed Bitcoin regulations (the BitLicense proposal) - percieved by many participants at the event as an apparent ...



more from Bitcoin

Insider Scoop

DigiTimes Reports Advanced Semiconductor Engineering Affiliate Receives Apple iWatch Orders

Courtesy of Benzinga.

An affiliated company of Advanced Semiconductor Engineering (NYSE: ASX), Universal Scientific Industrial, has reportedly received SiP module orders from Apple (NASDAQ: AAPL) for the iWatch according to industry sources, as reported by DigiTimes. Each SiP module costs approximately $60, which is 20% of the iWatch's rumored $300 price tag.

View full article http://www.digitimes.com/news/a20140723PD209.html

Posted-In: Digitimes...



http://www.insidercow.com/ more from Insider

Option Review

Starbucks Options Volume Rises Ahead Of Earnings After The Bell

Volume in Starbucks options is running approximately three times the average daily level for the stock as of 1:15 p.m. ET ahead of the company’s third-quarter earnings report after the close. Shares in the name are up roughly 1.0% just before midday to stand at $79.95. Traders of SBUX options today are more active in calls than puts, with the call/put ratio hovering near 2.0 as of the time of this writing. Much of the volume is in 25Jul’14 expiry options contracts, most notably in the $80 and $83 strike calls which have traded roughly 3,350 and 2,550 times respectively and in excess of existing open interest levels in both strikes. A portion of the volume in the $80 and $83 calls appears to be part of a spread trade.

...

more from Caitlin

Sabrient

Sector Detector: Bulls remain unfazed by borderline Black Swans

Courtesy of Sabrient Systems and Gradient Analytics

Despite a highly eventful week in the news, not much has changed from a stock market perspective. No doubt, investors have grown immune to the daily reports of geopolitical turmoil, including Ukraine vs. Russia for control of the eastern regions, Japan’s dispute with China over territorial waters, Sunni vs. Shiite for control of Iraq, Christians being driven out by Islamists, and other religious conflicts in places like Nigeria and Central African Republic. But last Thursday’s news of the Malaysian airliner tragically getting shot down over Ukraine, coupled with Israel’s ground incursion into Gaza, had the makings of a potential Black Swan event, which in my view is the only thing that could derail the relentless bull march higher in stocks.

Nevertheless, when it became clear that the airline...



more from Sabrient

OpTrader

Swing trading portfolio - week of July 21st, 2014

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



more from OpTrader

Stock World Weekly

Stock World Weekly

Newsletter writers are available to chat with Members regarding topics presented in SWW, comments are found below each post.

Here's the latest Stock World Weekly. Please use your PSW user name and password to log in. (You may take a free trial here.)

#452331232 / gettyimages.com ...

more from SWW

Market Shadows

Danger: Falling Prices

Danger: Falling Prices

By Dr. Paul Price of Market Shadows

 

We tried holding up stock prices but couldn’t get the job done. Market Shadows’ Virtual Value Portfolio dipped by 2% during the week but still holds on to a market-beating 8.45% gain YTD. There was no escaping the downdraft after a major Portuguese bank failed. Of all the triggers for a large selloff, I’d guess the Portuguese bank failure was pretty far down most people's list of "things to worry about." 

All three major indices gave up some ground with the Nasdaq composite taking the hardest hi...



more from Paul

Pharmboy

Biotechs & Bubbles

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

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...



more from Pharmboy

Promotions

See Live Demo Of This Google-Like Trade Algorithm

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.

Follow this link to register for their training webinar where they’ll demonstrate the tested and proven Algorithm powered by the same technological principles that have made GOOGLE the #1 search engine on the planet!

And get this…had you done nothing b...



more from Promotions



FeedTheBull - Top Stock market and Finance Sites



About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

Market Shadows >>