Archive for 2017

Weekly Market Recap Nov 12, 2017

Courtesy of Blain.

While it was the first losing week in 8 for the major averages, bulls should continue to be happy as such minor losses after significant rallies are just part of a consolidation period.   Tuesday was the only positive day for the week but again we are talking about a very low volatility environment, where “down days” are often in the spirit of -0.15%.   That said the weakness in the Russell 2000 was interesting this past week.

While these type of quotes – now incessant it seems – should worry you, it hasn’t matter to the market….

There is no reason for stocks to go down substantially at this point, as earnings growth is robust and global economy is improving. The path of least resistance is higher,” said Steve Chiavarone, portfolio manager at Federated Global Allocation Fund.

I don’t really see how this bull market gets derailed,” said Maris Ogg, president at Tower Bridge Advisors.

News flow was really quiet outside of some tussling over tax reform.

The mega capitalization glamour stocks – especially in technology….

….are hiding it but we are seeing some weakness in interesting areas – biotechs, transports, etc.

Here is the 5 day weekly “intraday” chart of the S&P 500 .. via Jill Mislinski.

The one year rally since Trump was elected, and the DJIA rally since then has been the best since 1945!

The DJIA has advanced 28.50% since Nov. 8, 2016. (as of Wednesday’s close) That represents its best performance after a White House contest since 1945, when the blue-chip gauge was up 29.83% in a year following the election of Franklin D. Roosevelt. The average 12-month gain following Election Day is 6.04%.  The gains have been primarily concentrated within two sectors: technology stocks, up 42.2% over the past 12 months, and financials, up 37.5%.   Trump has taken full credit for the equities rally, offering this assessment this week: “The reason our stock market is so successful is because of me.”

The week ahead…

Retail sales Wednesday (expected 0.1% growth!) is the only economic…
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Switch Falls Despite Beat On First Earnings Report As Public Company

Courtesy of Benzinga.

Switch Falls Despite Beat On First Earnings Report As Public Company

Switch Inc (NYSE: SWCH) shares fell despite beating top and bottom estimates in the third quarter, its first earnings release as a public company.

The Las Vegas-based tech infrastructure company delivered third quarter EPS of 8 cents, just beating estimates by a penny. Revenues came in nearly $2 million ahead of estimates at $97.7 million.

“Switch delivered a strong third quarter, achieving its highest-ever revenue and operating profit for a single quarter,” said CEO Rob Roy. “All of our growth was organic, and we ended the quarter with over 800 customers, adding notable enterprises to our customer base. Our innovative, patent-protected technology and strategically located hyperscale campus ecosystems continue to be key differentiators leading customers to choose Switch for their mission critical data.”

Q3 Highlights

  • Record quarterly revenue of $97.7 million
  • Adjusted EBITDA of $49.7 million
  • Company sees FY17 sales of $372-$380 million

Shares of Switch were trading down more 3 percent after hours to $19.40. The stock was up nearly 10 percent since last week.

Click here to see the full results.

Posted-In: Rob RoyEarnings News After-Hours Center Movers Best of Benzinga





Vetr Upgrades Oracles

Courtesy of Benzinga.

The Vetr crowd has upgraded Oracle Corporation (NYSE: ORCL) from 4 stars to 4.5 stars.

The crowd rates the name a Strong Buy, with a price target of $55.49. Analyst consensus holds a price target of $45.98.

See how crowdsourced ratings can help predict the market?

Oracle shares were trading at $49.40 after the close Monday.

For the crowd’s full analysis of the stock, click here.

Posted-In: VetrUpgrades Crowdsourcing Analyst Ratings General





JD.com Higher After Q3 Beat And Raise

Courtesy of Benzinga.

JD.Com Inc(ADR) (NYSE: JD) shares are trading higher by $2.00 (5.3 percent) at $41.96 in Monday’s session.

The catalyst for the rally is a Q3 EPS beat of 13 cents along with a slight beat for revenues. The company raised Q4 sales guidance to $16.11 billion-$16.57 billion vs. $16.26 billion estimates.

See Also: How To Play Singles Day

After a higher open, JD continued in that direction until it peaked at $42.77 and reversed course. That high coincides with its September 28 high ($42.68). It came off that level quickly, but found support just ahead of the top of Friday’s range ($40.40), only reaching $40.85.

At this time, it’s attempting to remain in the $42.00 handle.

Posted-In: Earnings News Technicals Intraday Update Movers Trading Ideas





Even Exact Sciences Bulls Wonder If Expectations Are Lofty

Courtesy of Benzinga.

Even Exact Sciences Bulls Wonder If Expectations Are Lofty

EXACT Sciences Corporation (NASDAQ: EXAS) shares have been on a heady run this year. Despite the sell side’s optimism on the company’s fundamentals, analysts have become wary of Exact’s astronomical valuation, with the company holding its highest valuation since the summer of 2015.

The Analyst & Rating

Baird analyst Catherine Ramsey Schulte downgraded shares of Exact Sciences from Outperform to Neutral, with a price target of $56.

The Thesis

Exact Sciences has continued to report impressive quarters and steadily improving utilization, Ramsey Schulte said in a Monday note. Cologuard’s positioning in quality measures and insurance coverage is strong, the analyst said. (See Ramsey Schulte’s track record here.)

Expectations going into 2018 are high, according to Baird. Using a $450 average selling price, or ASP, estimate for 2018, the Street estimate for Exact sits at 930,000 completed tests versus Baird’s estimate of 874,797.

The gap could be magnified further when guiding for the full year, Ramsey Schulte said.

Exact is in the habit of guiding conservatively and then beating its guidance, the analyst said. The company’s guidance range for the fourth quarter suggests that it might be attempting to rein in expectations a bit, the Ramsey Schulte said.

“With a $7 billion-plus market cap, it certainly feels like big numbers are expected,” she said. 

“We continue to have a very positive outlook on the business, but believe it’s worth staying on the sidelines until expectations for 2018 have been set.”

The Price Action

At the time of writing, shares of Exact Sciences were shedding 3.45 percent to $58.29.

The stock is up a staggering 336 percent year-to-date. 

Related Links: 

Risk-Reward Still Suggests Exact Sciences Is A Buy, But Be Cautious

Attention Biotech Investors: Here Are November PDUFA Catalysts On The Horizon

Photo courtesy of Exact Sciences. 

Latest Ratings for EXAS

Date Firm Action From To
Nov 2017 Leerink Swann Maintains Outperform
Nov 2017 Baird Downgrades Outperform Neutral
Nov 2017 BTIG Research Downgrades Buy Neutral

View More Analyst Ratings for EXAS


View the Latest Analyst Ratings

Posted-In: Baird Catherine Ramsey SchulteAnalyst Color Downgrades Analyst Ratings Best of Benzinga





Dynavax Under Selling Pressure

Courtesy of Benzinga.

Dynavax Technologies Corporation (NASDAQ: DVAX) shares are trading lower by $1.95 (8 percent) at $18.30 in Monday’s session.

After last Thursday’s close, the company announced it received FDA approval for Heplisav-B for the prevention of Hepatitis B in adults. It did manage a small gain in a volatile session on Friday, but finished well off its high for the of $22.25.

See Also: At Long Last, Dynavax Wins FDA Approval For Heplisav

Unfortunately for investors, Dynavax has been a “sell the news” scenario as the stock has nearly doubled since its July 27 low of $8.90 when it reached $24.45 on October 5.

In today’s session, it was unable to clear Friday’s close ($20.25), only reaching $20.20 and began to move lower. The ensuing decline took the stock beyond Friday’s low ($18.60), reaching $18.20 as of 1:20 p.m. EST. That marks its lowest level since it bottomed on September 5 at $17.70.

Posted-In: Technicals Intraday Update Movers Trading Ideas





KeyBanc: Iqvia Holdings’ Valuation Might Be Overheated

Courtesy of Benzinga.

KeyBanc: Iqvia Holdings' Valuation Might Be Overheated

Iqvia Holdings Inc (NYSE: Q), formerly known as Quintiles, merged with IMS Health last year to combine its data assets and tools to better compete in the post-Cures Act environment.

The Analyst

KeyBanc Capital Markets’ Donald Hooker downgraded Iqvia’s stock rating from Overweight to Sector Weight with no assigned price target. Keybanc’s previous price target was $100.

The Thesis

Iqvia’s business model is differentiated and well-positioned to operate in the market at a time when there is a “concerted effort” by regulatory bodies across the world to improve the drug development process, Hooker said in the downgrade note. (See Hooker’s track record here.) 

Iqvia is able to combine the data assets of the legacy IMS Health business to improve the clinical trial feasibility analysis during the RFP process, the analyst said. 

Looking forward, the company should be able to demonstrate a consolidated organic revenue growth profile of 6 to 7 percent and grow its EBITDA by 9 to 10 percent in both 2018 and 2019, Hooker said. The stock is trading at 14x 2018 EBITDA, which not only represents a premium to the group average of 12.8x, but also assumes a 25 percent multiple expansion this year, the analyst said. 

Iqvia’s balance leverage of 3.8x (net debt-to-R4Q EBITDA) is above the average debt ratio of other publicly traded CROs of 1.8x, Hooker said. 

Price Action

Shares of Iqvia have gained 36 percent since the start of 2017 and 145 percent over the past five years.

Related Links:

Exclusive: DelMar Pharma CEO Sheds Light On Glioblastoma, And How Its Drug Could Help Sen. John McCain

Exclusive: Egalet CEO Talks Drug Approvals, 21st Century Cures Act And Winning The War On Opioid Abuse

Latest Ratings for Q

Date Firm Action From To
Nov 2017 KeyBanc Downgrades Overweight Sector Weight
Nov 2017 Morgan Stanley Maintains Overweight
Nov 2017 Mizuho Downgrades Buy Neutral

View More Analyst Ratings for Q


View the Latest Analyst Ratings

Posted-In: Donald Hooker drugs IMS Health KeyBanc Capital Markets QuntilesAnalyst Color Downgrades Analyst Ratings Best of Benzinga





6 Key Technical Levels Discussed On Monday’s PreMarket Prep

Courtesy of Benzinga.

The following stocks and technicals were mentioned on Monday’s edition of PreMarket Prep, a daily trading ideas show hosted by former floor trader Joel Elconin and prop trader Dennis Dick.

You can listen to the show live every day from 8-9 a.m. ET here, or catch the podcast on iTunes, Soundcloud, and Stitcher.

  • Alibaba Group Holding Ltd (NYSE: BABA) – hit a pre-market high of $189.80. The Nov. 7 high of $189.86 and all-time high of $191.22 offer some resistance (the all-time closing high is $188.51). It will need to hold Friday’s close of $186.41 to sustain the momentum.
  • JD.com Inc (ADR) (NASDAQ: JD) – the last four closes are all between $39.79 and $40.33. It needs to hold $40 to continue to rally. There’s also a pair of highs from Sept. 25-26 at $41.78 and $42.09, which will serve as resistance.
  • Hasbro, Inc. (NASDAQ: HAS) – has to fill a gap up to $95.40 from the last report.
  • QUALCOMM, Inc. (NASDAQ: QCOM) – has a triple bottom at $64 from the last three sessions.
  • Overstock.com Inc. (NASDAQ: OSTK)- has an all-time closing high of $53.15 from Friday.
  • General Electric Company (NYSE: GE)- hit a pre-market high of $21.06.

Watch the show in its entirety here.

PreMarket Prep is a daily trading ideas show hosted by former floor trader Joel Elconin and prop trader Dennis Dick. You can listen to the show live every day from 8-9 a.m. ET here or on YouTube Live. The podcast is available on iTunes, Soundcloud, and Stitcher.

Posted-In: PreMarket PrepTechnicals Previews Pre-Market Outlook Media Trading Ideas





Economic Data Scheduled For Monday

Courtesy of Benzinga.

  • The Treasury is set to auction 3-and 6-month bills at 11:30 a.m. ET.
  • The U.S. Treasury budget report for October will be released at 2:00 p.m. ET.

Posted-In: Economic DataNews Economics Pre-Market Outlook Markets





6 Stocks To Watch For November 13, 2017

Courtesy of Benzinga.

6 Stocks To Watch For November 13, 2017

Some of the stocks that may grab investor focus today are:

  • Wall Street expects Tyson Foods, Inc. (NYSE: TSN) to report quarterly earnings at $1.38 per share on revenue of $9.86 billion before the opening bell. Tyson shares rose 0.43 percent to close at $74.14 on Friday.
  • Analysts are expecting JD.Com Inc(ADR) (NASDAQ: JD) to have earned $0.11 per share on revenue of $12.60 billion in the latest quarter. JD.Com will release earnings before the markets open. JD.Com shares gained 0.40 percent to close at $39.96 on Friday.
  • Hasbro, Inc. (NASDAQ: HAS) reportedly has made a takeover approach to Mattel, Inc. (NASDAQ: MAT), the Wall Street Journal reported. Mattel shares gained 4.95 percent to close at $14.62 on Friday, while Hasbro shares rose 3.11 percent to close at $91.45 on Friday.

Find out what’s going on in today’s market and bring any questions you have to Benzinga’s PreMarket Prep.

  • After the markets close, Hollysys Automation Technologies Ltd (NASDAQ: HOLI) is projected to post quarterly earnings at $0.32 per share. Hollysys Automation shares dropped 0.77 percent to close at $23.26 on Friday.
  • Analysts expect Aecom (NYSE: ACM) to report quarterly earnings at $0.71 per share on revenue of $4.67 billion before the opening bell. Aecom shares declined 0.11 percent to close at $35.59 on Friday.

Posted-In: Stocks To WatchEarnings News Pre-Market Outlook Markets Trading Ideas





 
 
 

Zero Hedge

Johns Hopkins, Bristol-Myers Face $1 Billion Suit For Infecting Guatemalan Hookers With Syphilis 

Courtesy of ZeroHedge. View original post here.

A federal judge in Maryland said Johns Hopkins University, pharmaceutical company Bristol-Myers Squibb and the Rockefeller Foundation must face a $1 billion lawsuit over their roles in a top-secret program in the 1940s ran by the US government that injected hundreds of Guatemalans with syphilis, reported Reuters.

Several doctors from Hopkins an...



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Phil's Favorites

This Is The One Chart Every Trader Should Have "Taped To Their Screen"

Courtesy of Zero Hedge

After a year of tapering, the Fed’s balance sheet finally captured the market’s attention during the last three months of 2018.

By the start of the fourth quarter, the Fed had finished raising the caps on monthly roll-off of its balance sheet to the full $50bn per month (peaking at $30bn USTs, $20bn MBS, although on many months the (balance sheet) B/S does not actually shrink by this full amount which depends on the redemption schedule) and by end-Q4 markets also experienced some of the largest volatility and drawdowns in nearly a decade.

As Nomura&...



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ValueWalk

The Competition For Capital Has Made Stocks Cheap

By Michelle Jones. Originally published at ValueWalk.

The new year is upon us, and now is the time many investors look at what 2018 was and prepare for what 2019 might be. Recession jitters are starting to pick back up again, especially now that the full picture of 2018 is in the books. But what if you could pick only one theme for 2018? Jefferies strategist Sean Darby and team have a suggestion which is especially timely given that it appears to mark the end of an era.

StockSnap / PixabayVolatility carries into the new year

This past year was one of extremes, and the markets ended i...



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Kimble Charting Solutions

Stock declines did not break 9-year support, says Joe Friday

Courtesy of Chris Kimble.

We often hear “Stocks take an escalator up and an elevator down!” No doubt stocks did experience a swift decline from the September highs to the Christmas eve lows. Looks like the “elevator” part of the phrase came true as 2018 was coming to an end.

The first part of the “stocks take an escalator up” seems to still be in play as well despite the swift decline of late.

Joe Friday Just The Facts Ma’am- All of these indices hit long-term rising support on Christmas Eve at each (1), where support held and rallies have followed.

If you find long-term perspectives helpf...



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Digital Currencies

Transparency and privacy: Empowering people through blockchain

 

Transparency and privacy: Empowering people through blockchain

Blockchain technologies can empower people by allowing them more control over their user data. Shutterstock

Courtesy of Ajay Kumar Shrestha, University of Saskatchewan

Blockchain has already proven its huge influence on the financial world with its first application in the form of cryptocurrencies such as Bitcoin. It might not be long before its impact is felt everywhere.

Blockchain is a secure chain of digital records that exist on multiple computers simultaneously so no record can be erased or falsified. The...



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Insider Scoop

Cars.com Explores Strategic Alternatives, Analyst Sees Possible Sale Price Around $30 Per Share

Courtesy of Benzinga.

Related 44 Biggest Movers From Yesterday 38 Stocks Moving In Wednesday's Mid-Day Session ...

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

Chart School

Weekly Market Recap Jan 13, 2019

Courtesy of Blain.

In last week’s recap we asked:  “Has the Fed solved all the market’s problems in 1 speech?”

Thus far the market says yes!  As Guns n Roses preached – all we need is a little “patience”.  Four up days followed by a nominal down day Friday had the market following it’s normal pattern the past nearly 30 years – jumping whenever the Federal Reserve hints (or essentially says outright) it is here for the markets.   And in case you missed it the prior Friday, Chairman Powell came back out Thursday to reiterate the news – so…so… so… patient!

Fed Chairman Jerome Powell reinforced that message Thursday during a discussion at the Economic Club of Washington where he said that the central bank will be “fle...



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Members' Corner

Why Trump Can't Learn

 

Bill Eddy (lawyer, therapist, author) predicted Trump's chaotic presidency based on his high-conflict personality, which was evident years ago. This post, written in 2017, references a prescient article Bill wrote before Trump even became president, 5 Reasons Trump Can’t Learn. ~ Ilene 

Why Trump Can’t Learn

Donald Trump by Gage Skidmore (...



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Biotech

Opening Pandora's Box: Gene editing and its consequences

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

 

Opening Pandora's Box: Gene editing and its consequences

Bacteriophage viruses infecting bacterial cells , Bacterial viruses. from www.shutterstock.com

Courtesy of John Bergeron, McGill University

Today, the scientific community is aghast at the prospect of gene editing to create “designer” humans. Gene editing may be of greater consequence than climate change, or even the consequences of unleashing the energy of the atom.

...

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Mapping The Market

Trump: "I Won't Be Here" When It Blows Up

By Jean-Luc

Maybe we should simply try him for treason right now:

Trump on Coming Debt Crisis: ‘I Won’t Be Here’ When It Blows Up

The president thinks the balancing of the nation’s books is going to, ultimately, be a future president’s problem.

By Asawin Suebsaeng and Lachlan Markay, Daily Beast

The friction came to a head in early 2017 when senior officials offered Trump charts and graphics laying out the numbers and showing a “hockey stick” spike in the nationa...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

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 ...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

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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...

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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.

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