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    Energy Sector Showing Sell Signals

    Our proprietary energy cycle indicator turned down this week from the divergence as noted previously. OIH (VanEck Vectors Oil Services ETF) is now on a sell signal. XLE (Energy Select Sector SPDR Fund) is also on a sell signal. XEG:TSX (iShares S&P/TSX Capped Energy Index ETF) also triggered a sell signal this week. Summary The energy sector cycle is now down, with sell signals in the ETFs. A multi-week correction is now in progress....
    On May 16, 2016 / By
  • Finance 0

    5 Large Caps For Momentum Investors – May 16, 2016

    Today I used Barchart to sort the S&P 500 Large Cap Index stocks to find stocks for momentum investors. First I sorted for the most frequent new highs in the last month then again for positive short term buy signals. Next I used the Flipchart feature to review the charts. Today’s watch list includes: Oneok (NYSE: OKE), Baxter International (NYSE: BAX), L-3 Communications (NYSE: LLL), Republic Services (NYSE: RSG) and Martin Marietta Materials (NYSE: MLM) Oneok Barchart technical indicators: 96% technical buy signals Trend Spotter buy signal Above its 20, 50 and 100 day moving averages 17 new highs and up 32.21% in t...
    On May 16, 2016 / By
  • Finance 0

    The Re-balancing – Financial Review

    Podcast: Play in new window | Play in new window (Duration: 13:16 — 6.1MB) DOW + 175 = 17,710 SPZ + 20 = 2066 NAS + 57 =4775 10 Y + .05 = 1.75% OIL + 1.66 = 47.87 GOLD + .70 = 1274.50 The National Association of Home Builders’ index of home builder sentiment was 58 for the fourth month in a row. Readings over 50 signal improvement. A reading of New York-area manufacturing conditions fell sharply in May. The Empire State general business conditions index dropped to a reading of negative 9, from positive 9.6 in April. This week’s economic calendar includes the April CPI tomorrow, a look at inflation on the retail level and minutes...
    On May 16, 2016 / By
  • Finance 0

    Some Caveats On The Retail Recession

    Last week was all about the big department stores – Macy’s (M), Kohl’s (KSS) and Nordstrom’s (JWN) – and their sales failures.  This week is all about a number of retailers who have been doing quite well up until now and who will release earnings reports this week and next. Let’s start with the discounters, TJ Maxx (TJX) and Ross Stores (ROST), who we will hear from later this week.  In February, TJX reported 5% comparable store sales for the year ended Jan 30, 2016 and forecast a 1-2% increase for the coming year.  The stock is near all time highs.  They will report 1st quarter results Tuesday morning.   The story at Ross St...
    On May 16, 2016 / By
  • Finance 0

    US Treasuries Account For A Stunning 60% Of All Global Positive Yielding Debt

    2016 was the year when, in the aftermath of the Fed’s first tightening cycle in a decade, the yield curve was supposed to not only rise substantially but also steepen, providing a much needed NIM arbitrage for commercial banks. That has not only not happened, but as a result of the Fed’s relent according to which the Fed will no longer hike 4 times in 2016 but at peast 2, and according to the market 0, yields have tumbled. Which brings us to a fascinating report by Citi’s Vikram Rai in which the rates strategist tries to find if there is any upside to Treasury yields and is unable to find any. This is what he says. More than...
    On May 16, 2016 / By
  • Finance 0

    US Housing Starts & Industrial Production: April 2016 Preview

    Economists are projecting growth for the monthly comparisons in tomorrow’s April updates on residential housing construction and industrial output in the US. But while the consensus forecasts are calling for an encouraging start for the second-quarter data, the implied one-year changes are still on track to stay negative. Let’s start with housing starts (seasonally adjusted annualized rate), which are expected to pop roughly 4% in April, according to three consensus forecasts. That’s an improvement vs. the 8.8% slump in March. But the upbeat monthly prediction due on Tuesday (May 17) still leaves the implied 1-year percentage change for...
    On May 16, 2016 / By
  • Finance 0

    Dow Jones Industrial Average Rallies As AAPL Stock, Oil Push Higher

    Oil prices pushed to their highest levels since November and fueled a nearly 200-point rally for the Dow Jones Industrial Average. The rally was a welcome one after a difficult few weeks for traders over concerns regarding the health and expected growth rate of the global economy. Here’s what else you need to know about the markets on May 16, 2016. First up, check out the results for the Dow Jones Industrial Average, S&P 500, and Nasdaq: Dow Jones: 17,710.71; +175.39; +1.00% S&P 500: 2,066.66; +20.05; +0.98% Nasdaq: 4,775.46; 57.78; +1.22% Now, here’s the top stock market news today… DJIA Today: Deals in Focus, O...
    On May 16, 2016 / By
  • Finance 0

    Why Home Depot Should Be In Your Portfolio Ahead Of Earnings

    Photo Credit: Mike Mozart The Home Depot, Inc. (HD) Consumer Discretionary – Specialty Retail | Reports May 17, Before Market Opens Key Takeaways The Estimize consensus is calling for earnings per share of $1.35 on $22.15 billion in revenue, 2 cents higher than Wall Street on the bottom line and $70 million on the top Home Depot’s strategic initiatives to improve customer experience and expand its omni channel capabilities have paid off The housing recovery has also played a major part in Home Depot strong growth What are you expecting for HD? Get your estimate in here! Home improvement retailer, Home Depot, is scheduled to report...
    On May 16, 2016 / By
  • Finance 0

    China’s Rolling Boom-Bust Cycle

    Sweet Authoritative Nothings There is a mysterious figure making regular appearances in China’s government mouthpiece “People’s Daily”, which simply goes by the name “authoritative person” (AP). This unnamed entity always tends to show up with bad news for assorted speculators, by suggesting that various scenarios associated with monetary and/ or fiscal stimulus are actually not in China’s immediate future (the details of AP’s latest pronouncements can be found here and here). The People’s Daily. “Authoritative Person” may be hiding somewhere in the picture to the left. Some observers seem to believe that this repre...
    On May 16, 2016 / By
  • Finance 0

    Parsley Energy – Chart Of The Day

    The Chart of the Day belongs to Parsley Energy (NYSE:PE). I found the oil exploration stock by using Barchart to sort today’s All Time High list first for the most frequent new highs in the last month, ten again for technical buy signals of 80% or more. Next I used the Flipchart feature to review the charts for consistency. Parsley Energy, Inc. is an independent oil and natural gas company. It is focused on the acquisition, development, and exploitation of unconventional oil and natural gas reserves in the Permian Basin. Parsley Energy, Inc. is headquartered in Midland, Texas. The status of Barchart’s Opinion trading systems...
    On May 16, 2016 / By