Wednesday, September 2, 2015

TRIN Arms Index: The Market’s “Other” Panic Indicator Just Went Off The Charts

With indicators from macro-fundamentals (e.g. retail sales, core capex, inventory-to-sales) to market-oriented measures (VIX levels and backwardation, HY credit spreads, commodity prices)all flashing various colors of dead canary in the coal-mine red, we thought today’s colossal spike in the Arms (TRIN) Index was a notable addition.
An Arms Index value above one is bearish, a value below one is bullish and a value of one indicates a balanced market. Traders look not only at the value of the index, but also at how it changes throughout the day. Traders look for extremes in the index value for signs that the market may soon change directions. The Arm’s Index was invented by Richard W. Arms, Jr. in 1967. In essence, a sudden surge in the TRIN indicates a jump in trader lack of confidence, as everyone scrambles to either go long the 2-3 rising stocks, or to sell or short the biggest decliners, ignoring the bulk of the market..
Today’s move was far greater than “Black Monday’s market-halting crash:

In longer context:

As we noted previously, the Arms index is an indicator of market breadth essentially tracks lemming like momentum-chasing behavior with respect to volume… meaning today sawpanic-buying volumes which given that it was dip-buyers at the close, we suspect won’t end well…

Chinese Selling Pressures Bonds

The massive liquidation of Treasury’s by the Chinese government has pressured Bond futures into testing support levels. On August 31st Bonds closed below the 100 DMA and today it so far has failed to hold onto any rallies. It is trading below the 100 and another close below this support level could lead to further price declines as we head to Friday’s Employment report. A good showing from Nonfarm payrolls could lead to more talk of a Fed rate hike at its next meeting during the week of September 15th. This would keep pressure on bonds and could lead to a test of the June lows at 147 11/32. MACD has crossed over to the downside and is heading towards the zero line. I look to buy October 150 puts in the Treasury Bonds for $600 with the idea that continued selling of Treasury’s by the Chinese and a possible rate hike by the Fed could lead to a further price decline in the bonds.

Chart of the Day - Smith & Wesson (SWHC)

The Chart of the Day belongs to Smith & Wesson (SWHC).  I found the handgun Manufacturing stock by using Barchart to sort the Russell 3000 Index stocks for the  with the highest Weighted Alpha and then again for the stocks with a Barchart technical buy signal of 80% or better.  Last I used the Flipchart feature to review the charts.  The Trend Spotter signaled another buy on 8/28.

Smith & Wesson Holding Corporation is one of the world's leading producers of quality handguns, law enforcement products and firearm safety and security products. Law enforcement personnel, military personnel, target shooters, hunters, collectors and firearms enthusiasts throughout the world have used the company's products with confidence for 150 years. Smith & Wesson Corp. also manufactures and markets Smith & Wesson branded handcuffs and other products utilizing its metal working expertise and providing products and services to many external customers.

technical indicators:
  • 100% Barchart technical buy signals
  • 78.30+ Weighted Alpha
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 10 new highs and up 12.39% in the last month
  • Relative Strength Index 67.43%
  • Barchart computes a technical support level at 16.62
  • Recently traded at 18.08 with a 50 day moving average of 16.50
Fundamental factors:
  • Market Cap $971.98 million
  • P/E 15.30
  • Revenue expected to grow 12.30% this year and another 5.40% next year
  • Earnings estimated to increase 27.80% this year, an additional 14.80% next year and continue to compound at an annual rate of 14.00% for the next 5 years
  • Wall Street analysts released 1 strong buy, 6 buy, 1 hold and 1 under perform recommendation on the stock
The 100 day moving average vs price has been the most reliable technical trading strategy on this stock.
Although this is a stock bucking the current trend, I am still not buying anything in this uncertain market.

Hess Corp. (NYSE: HES)

Hess Corporation, an exploration and production company, develops, produces, purchases, transports, and sells crude oil, natural gas liquids, and natural gas. The company primarily operates in the United States, Denmark, Equatorial Guinea, the Joint Development Area of Malaysia/Thailand, Malaysia, and Norway. As of December 31, 2014, it had total proved reserves of 1,431 million barrels of oil equivalent.
Take a look at the 1-year chart of Hess (NYSE: HES) below with my added notations:
1-year chart of Hess (NYSE: HES)
Overall, HES has been trending lower for the past 12 months. During the stock’s decline it has had a tendency to create key levels at the increments of $5 (red). For example, the current level of resistance is $60. Next, you can see that $65 was the previous support back in June, while recently the $50 and $55 levels have both been tested as support.

The Tale of the Tape: HES is approaching its key level of $60. A long trade could be made on a break above that level with a stop placed under it. Or, a short trade could be made at $60 with the expectation of a fall down to the next $5 level at $55.

Tuesday, September 1, 2015

Ross Clark – Equity Markets. Martin Armstrong – The “Government Bubble” and 2015.75

Red Alert for 2nd Crash Downwave For Stocks $DJIA

by Clive Maund
Gold Seek

We are believed to be at an excellent juncture right now to short the broad stockmarket (or buy bear ETFs and Puts). As we know, we did just that before the dramatic plunge early last week, and are now “sitting pretty”. Now is the time to add to positions, or if you haven’t any and are looking for the right shorting opportunity, this is it.
To see just why now is an excellent time to enter short positions or build on existing short positions (inverse ETFs / Puts) we will now look at the latest 1-year chart for the S&P500 index. All those who bought in the large rectangular pattern drawn on the chart, labeled the “Mug Pen” are like sheep huddled in a corral waiting to be fleeced. Even after the sharp rally late last week they are nursing significant losses, and if they get the chance to “get out even” or nearly so, they are going to take it. What is likely to happen is that they will almost get the chance, but not quite, because the market will turn down again soon, or immediately, and they will have to make a run for it if they want to avoid a severe fleecing. This means that as soon as the market starts to drop away again, they will stampede to unload stocks while they still can at reasonable prices, exacerbating the rate of decline. This is a big reason that another severe downleg is expected.
Continue Reading at…

Why So Much Oil Price Volatility? Blame The Speculators

Nick Cunningham via,
Oil prices crashed last week only to rebound at lightning speed. On August 28, oil prices surged 10 percent, the largest one-day gain in seven years. So, what happens next for oil prices?

On the face of it, the crash and massive rebound makes little sense, with many oil market analysts undoubtedly left shaking their heads.
But there is a logic to what unfolded, just not the logic of the physical market for crude. Oil prices, as if we needed a reminder, are largely driven by speculation. Why else would oil prices plummet by five percent, then spike by 10 percent just a few days later? Not much changed in terms of actual supply and demand of oil in the intervening days. (more)

Stocks To Watch: BBRY, LBIO, WDC

BlackBerry Ltd (NASDAQ:BBRY) showed relative strength today compared to rest of market, which is a very good sign. The daily technical chart shows new rally has begun as %K line has crossed on top of %D line and price broke through the major resistance of $7.50. This new rally should at least push the stock to $8 in nearest term.

Shares of Lion Biotechnologies Inc (NASDAQ:LBIO) continue to surge. The stock is strong and getting stronger every day it seems. If it can close above $7.50 tomorrow, then expect more upside. Present technical indicators are in favor of Bulls. Im long.

Western Digital Corp (NASDAQ:WDC) is showing early signs of reversal. A high volume move through the 82.95 price level would be buyable. The MACD is showing a positive divergence and the RSI is back above the 50 reading forcing me to think the possibility of a trend reversal.

Bloomin’ Brands Inc (NASDAQ: BLMN)

Bloomin Brands, Inc., through its subsidiaries, owns and operates casual, upscale casual, and fine dining restaurants primarily in the United States. The company operates restaurants under various concepts, including Outback Steakhouse, a casual steakhouse restaurant; Carrabba’s Italian Grill, a casual Italian restaurant; Bonefish Grill, an upscale casual seafood restaurant; and Fleming’s Prime Steakhouse & Wine Bar, a contemporary steakhouse. As of December 28, 2014, it owned and operated 1,344 restaurants and franchised 166 restaurants in 48 states, Puerto Rico, Guam, and 21 countries.
Take a look at the 1-year chart of Bloomin’ (NASDAQ: BLMN) with the added notations:
1-year chart of Bloomin' (NASDAQ: BLMN)
After its steady decline from the beginning of March into May, BLMN had been trading in an overall sideways move. During that time, the stock had also created an important level of support at $21 (red). Once the stock broke that support, lower prices followed, as expected. Traders could look for that $21 level to now act as resistance if approached.

The Tale of the Tape: BLMN broke a key level of support at $21. A trader could enter a short position on any rallies up to or near $21 with a stop placed above the level. If the stock were to break back above the $21 level, a long position might be entered instead.

Monday, August 31, 2015

Gold Rally Marked by Short Covering

If there was ever any doubt that the majority of buying by the hedge fund category in the gold market over the past 3-4 weeks has been of the nature of short covering, this week’s COT should put that theory to rest.
Since the third week of July, the hedge fund category alone has covered or lifted 40,000 short positions. That against the addition of only 16,000 or so new long positions over the same time span. By a better than 2:1 margin, hedge funds have been covering shorts, not instituting fresh purchases of gold.
In the following chart, I have combined the speculative category ( hedge funds, large reportables and small specs) outright long and short positions and overlaid them upon a chart showing the price of gold. (more)

Chart of the Day - Sarepta Therapeutics (SRPT)

The Chart of the Day belongs to Serepta Therapeutics (SRPT).  I found the stock by using Barchart to sort the Russell 3000 Index stocks first for the highest technical buy signals then for a positive Weighted Alpha.  The Trend Spotter signaled another buy signal just yesterday.

Sarepta Therapeutics, Inc. focuses on the discovery and development of RNA-based therapeutics for the treatment of rare and infectious diseases. The Company's diverse pipeline includes its lead program eteplirsen, for Duchenne muscular dystrophy. Sarepta Therapeutics, Inc., formerly known as AVI BioPharma, Inc., is headquartered in Bothell, Washington.

Technical Indicators:

  • 100% Barchart technical buy signals
  • 61.60+ Weighted Alpha
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 8 new highs and up 14.55% in the last month
  • Relative Strength Index 63.22%
  • Barchart computes a technical support level at 33.22
  • Recently traded at 36.69 with a 50 day moving average of 32.51
Fundamental factors:
  • Market Cap $1.52 billion
  • The Revenue and earnings estimated are not reliable because they are all over the place
  • Wall Street analysts issued 6 strong buy, 2 buy and 6 hold recommendations on the stock
The 100 day moving avnlerages vs price has been a reliable technical trading strategy for this stock

Seabridge Gold's Stock $SA Could Hit $14, Another Deposit Site Extended

In a report published Friday, Singular Research analyst Jeffrey Briggs reiterated a Buy rating and $14.00 price target on shares of Seabridge Gold, Inc. (USA) , after the company announced positive drilling results in relation to the Deep Kerr deposit, which includes a considerable extension to the current boundary.
Same as in the case of the recently-announced extension of the Mitchell deposit, the expansion of the Deep Kerr deposit represents an “opportunity for continued increase in mineral resource at KSM,” the firm explained.
Given that removing selenium from water would be a potential issue in processing ore at the KSM Project, British Columbia required Seabridge to test a pilot plant before providing it with environmental clearance. The company recently completed the pilot successfully, aided by a Canadian environmental firm.

Deep Kerr

The aforementioned drill hole at Deep Kerr was extended 400 meters below the “previous hole that was near the lower end of the resource as currently defined. This means the new drill hole will provide information that will likely lead to an upgrade of the Deep Kerr resource estimate,” the report concluded.
Shares of Seabridge Gold are up more than 10 percent on Friday trading.

Hexcel Corporation (NYSE: HXL)

Hexcel Corporation develops, manufactures, and markets structural materials for use in commercial aerospace, space and defense, and industrial markets in the United States and internationally. The company operates through two segments, Composite Materials and Engineered Products. The Composite Materials segment manufactures and markets carbon fibers, fabrics and specialty reinforcements, prepregs and other fiber-reinforced matrix materials, structural adhesives, honeycombs, molding compounds, tooling materials, polyurethane systems, and laminates. The Engineered Products segment manufactures and markets aircraft structures and finished aircraft components, including wing to body fairings, wing panels, flight deck panels, door liners, helicopter blades, spars, and tip caps and fittings as well as for certain industrial applications.
Take a look at the 1-year chart of Hexcel (NYSE: HXL) below with added notations:
1-year chart of Hexcel (NYSE: HXL)
After rallying nicely into 2015, HXL started trading sideways over the following 4 months. While in the sideways move, the stock formed a common pattern known as a rectangle. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern.
HXL’s rectangle pattern formed a resistance at $52 (red) and a $48 support (green). After Monday’s drop, the stock is now back inside that range.

The Tale of the Tape: HXL is trading back inside its trading range. The possible long positions on the stock would be either on a pullback to $48 or on a breakout above $52. The ideal short opportunity would be on a break below $48.

US Weekly Economic Calendar

time (et) report period ACTUAL forecast previous
9:45 am Chicago PMI Aug.   -- 54.7
9:45 am Markit PMI Aug.   -- 52.9
10 am ISM Aug.   52.0% 52.7%
10 am Construction spending July   0.9% 0.1%
TBA Motor vehicle sales Aug.
17.3 mln 17.5 mln
8:15 am ADP employment Aug.   -- 185,000
8:30 am Productivity Q2
3.0% 1.3%
8:30 am Unit labor costs Q2   -1.4% 0.5%
10 am Factory orders July   1.0% 1.8%
2 pm Beige Book        
8:30 am Weekly jobless claims Aug. 29   275,000 271,000
8:30 am Trade deficit July   -$41.8 bln -$43.8 bln
10 am ISM nonmanufacturing Aug.   57.9% 60.3%
8:30 am Nonfarm payrolls Aug.
223,000 215,000
8:30 am Unemployment rate Aug.   5.2% 5.3%
8:30 am Average hourly earnings Aug.   0.2% 0.2%

Saturday, August 29, 2015

Chinese Medicine Not Impressing Dr. Copper

by Dan Norcini
Trader Dan

Dr. Copper apparently does not approve of the prescription ordered by the Chinese authorities to stem the slowdown in that nation, namely another 25 basis point interest rate reduction and a lowering of bank reserve requirements.
The red metal cannot sustain any upside action for long before sellers emerge to whack it again.
[...] This is number one of my THREE BIG C’s, Copper, Crude oil and Cotton.
So what exactly are the other two C’s telling us?
Continue Reading at…

Black Monday? Panicked Faces Yet to Come. Mike “Mish” Shedlock

Oil Surges To $45 After Saudi Troops Invade Yemen

For the 3rd day in a row, crude oil prices are spiking as the short squeeze morphs into a war premium. Heberler reports that Saudi ground troops have entered Northern Yemen and seized control of two areas in the Saada province. WTI is now above $45...
As we noted previously, boots have been on the ground there (and tank tracks) since early July...

But, as Haberler reports, forces seize control of two areas in Yemen’s Saada province in the first actual ground offensive by The Saudis...(more)

Everything you’ve heard about China’s stock market crash is wrong

This week’s Chinese stock market implosion has been widely viewed as a reaction to the Chinese government’s devaluing the yuan on Aug. 11—a move many presume was a frenzied bid to lower export prices and strengthen the economy.

This interpretation doesn’t stand up to scrutiny. First, Chinese investors haven’t been investing based on how the economy is doing, but rather, based on what they think the government will do to prop up the market. The crash, termed “Black Monday,” was more likely a reaction to the central bank’s failure over the weekend to announce a widely expected cut to the bank reserve requirement since previous cuts in February and April had boosted stock prices. The government eventually caved and announced a cut on Tuesday (Aug. 25).  (more)

There's A 47% Chance Of A Recession, But It's Not Worrying These Analysts

In a new report, Bank of America analyst Ethan Harris discussed the recent market action in response to China and looked at the probability that the S&P 500’s decline is indicative of a recession on the horizon in the United States.
Despite a relatively high score on the firm’s recession probability indicator, Harris urges traders not to panic about the possibility of a recession.

Rate Hike Coming

Despite the injection of fear into the markets during the past week, Harris does not believe that the FOMC will allow stock market turbulence to influence its decision to raise rates on September 17. The latest employment numbers indicate a very strong labor market, and the FOMC has been emphasizing a strong jobs market as the key to its eventual target of 2 percent inflation.
In addition, the U.S. GDP growth rate of 3.7 percent in Q2, as well as Bank of America’s projected 2.8 percent Q3 GDP growth rate, indicates that the underlying U.S. economy is strong, regardless of the movement of the recent shakiness of the S&P 500.

Not Completely Disconnected

Although there is no direct link between equity market movement and underlying economic strength, there are ways that the stock market indirectly influences the economy. However, Bank of America determined that only 2 cents out of every $1 of financial market wealth goes to new consumption.
“Using our model, we estimate that the S&P 500 would need to decline to an index level of 1600 (implying another 20 percent drop from today’s level) and stay there to shave off a full one pp from household spending growth,” Harris added.

Recession Watch

The firm’s recession probability model is currently indicating a 47 percent chance of a U.S. recession sometime in the next 12 months. However, Harris cautioned that the indicator is prone to false signals. He included an old Paul Samuelson quote about using the stock market to predict recessions: “The stock market has called nine out of the last five recessions,” Samuelson famously joked.

The Bank of America recession indicator peaked at around 59 percent back in 2011 without any subsequent recession.

Friday, August 28, 2015

Selloff made these tech stocks cheap, says analyst: $FB, $AMZN, $NFLX, $GOOG

With numerous analysts highlighting "FANG" stocks-Facebook (NASDAQ: FB), Amazon (NASDAQ: AMZN), Netflix (NASDAQ: NFLX) and Google (NASDAQ: GOOGL)-as technology trades to buy on the stock market's latest dip, one analyst took a different stance. 

"Yesterday, you were able to buy Alibaba (NYSE: BABA) at below the IPO price," Youssef Squali, Internet company analyst at Cantor Fitzgerald said Thursday on CNBC's "Squawk Alley." "Which we always think is a great price to own a strong franchise like that." 

For Squali, Facebook, Amazon and Google are in the top five tech stocks to buy amid the carnage-but instead of Netflix, he's eyeing Chinese e-commerce giant Alibaba and travel-booking company Priceline (NASDAQ: PCLN).

Though a steep stock selloff Monday followed fears surrounding China's growth, Alibaba remains a strong pick based on market dominance, growth in excess of peers, and valuations, he said.

"We find concerns about China to be overblown," Squali wrote in a note Wednesday night. "Recent market turmoil appears to have had little impact on retail spending." 

While online travel company Priceline also does business in China through a local partner, it mainly focuses on getting Chinese travelers abroad, a travel market which shows no signs of weakening, he wrote. 

Despite shares of content-streaming service Netflix trading up almost 7 percent Thursday midday, Squali didn't see the FANG darling as a top buy, because it was still trading at a high valuation compared to the other stocks.

"We do like Netflix over time, we have a buy on it, but it wasn't able to make it into the top list," Squali said.
Still, the recent pullback has caused many companies to come back to more attractive prices, especially among smaller and mid-size companies, he said. 

"There have been a number of people that have stayed on the sidelines, and this pullback has given them an opportunity to jump in," Squali said. "People are looking at these as good opportunities, probably great opportunities if you look at the next couple of years." 

On Thursday at midday, closely followed technology barometers such as the S&P 500 Information Technology sector were trading up 2.21 percent, and the Nasdaq 100 was trading up 2.46 percent, right in line with the overall indexes.

Global Grain Stocks At 30 Year Highs Mean Food Deflation Is Next

Everywhere you look there’s still more evidence that the world economy is grappling with a  global deflationary supply glut.
To be sure, this wasn’t supposed to happen.
Trillions in central bank cash and seven years of ZIRP across DMs was supposed to give a defibrillator shock to global demand and trade. Instead, the wealth effect never trickled down (surprise!) and wide open capital markets only served to keep insolvent producers in business, contributing to still more supply as everyone hangs on until the bitter end. As China’s slowdown continues unabated, the commodity hoarding becomes more evident and indeed on Thursday, The International Grains Council reported that global grain stocks are forecast to hit 447 million metric tons, the highest level in 29 years.  (more)


GNC Holdings Inc (NYSE: GNC)

GNC Holdings, Inc. operates as a specialty retailer of health and wellness products. The company operates through three segments: Retail, Franchise, and Manufacturing/Wholesale. Its products include vitamins, minerals and herbal supplements, sports nutrition products, diet products, and other wellness products. The company sells its products under GNC proprietary brands, including Mega Men, Ultra Mega, Total Lean, Pro Performance, Pro Performance AMP, Beyond Raw, GNC Puredge, GNC GenetixHD, and Herbal Plus, as well as under third-party brands. It operates a network of approximately 8,900 locations worldwide.
Take a look at the 1-year chart of GNC (NYSE: GNC) with the added notations:
1-year chart of GNC (NYSE: GNC)
GNC looked like it might have been rounding out a top from November through July, but then the stock shot to new highs instead. Now, the stock seems to be coming back down to that same July low. Over the past year, GNC has found support at that same $41.00 support (green) on multiple occasions. Traders could expect some sort of bounce if the stock reaches that support again. However, if the $41.00 support were to break, lower prices should follow.

The Tale of the Tape: GNC has an important level of support at $41.00. A trader could enter a long position at $41.00 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.

Thursday, August 27, 2015

Man Who Predicted Monday’s Massive Surge Off Panic Lows And Today’s Monster Rally Looks At What To Expect Next / August 26, 2015
On a day when the Dow surged over 600 points, it’s important when looking at the intensity of the recent panic and chaos in global markets to take a look at the big picture, so today King World News is pleased to feature a piece from one of the greats in the business who did an amazing job of calling Monday’s rally off the extreme panic lows as well as today’s massive rally in stocks.
August 26 (King World News) – This was the note Jason Goepfert at SentimenTrader after Monday’s carnage in the stock market.  It has turned out to be incredibly accurate:  “Similar to Friday, there are many different extremes and different ways to look at the panic selling that has occurred. We’ve seen a type of panic that rarely occurs, and when it does the pattern is to see some testing of the panic open over the next 1-2 days then a rebound lasting several days, then perhaps another test of the panic low….
Continue reading the SentimenTrader piece below…

4 Biotechs Piper Jaffray Is Buying On The Pullback : VRTX, NVAX, ALNY, ARWR

Biotech analysts at Piper Jaffray stated in a note on Wednesday that "we are buyers on weakness" of select biotech names that boast strong enough balance sheets to "make it through" upcoming value-driving events.
The analysts, led by Edward Tenthoff, singled out Vertex Pharmaceuticals Incorporated VRTX , Novavax, Inc. NVAX , Alnylam Pharmaceuticals, Inc. ALNY  along with Arrowhead Research Corp ARWR  being a smaller cap name.

Vertex: ORKAMBI Launch

Tenthoff noted that Vertex holds more than $1 billion in cash, while its total market cap stands at $29.2 billion. The analyst is expecting a "dramatic increase" in treatable cystic fibrosis patients with newly approved ORKAMBI, which will help drive revenue growth and a return to profitability in the near-term.

Novovax: Phase II Maternal RSV Data

Tenthoff pointed out that shares of Novovax dipped 27.5 percent since August 17, but he has "increased confidence" in the company following positive Phase II data in its RSV-F in elderly subjects.
Novovax also ended the quarter with $315 million in cash, which can fund "at least one" pivotal RSV trial as the company plans to enroll 8-10,000 elderly subjects by year-end.

Alnylam: TTR OLE Data

Shares of Alnylam lost 14 percent since August 17, trading at a $7.9 billion market cap, while the company ended the recent quarter with $1.4 billion in cash and expects to end the year with more than $1.2 billion.
According to the analyst, "all eyes" be on the patisiran and revusiran Phase II in OLE updates (expected in the fourth quarter), especially revusiran for familial amyloidotic cardiomyopathy (FAC) following three drop-outs due to rash/injection site reaction.

Arrowhead: Phase IIA HEPARC Data

Finally, Arrowhead holds $112 million in cash at the end of the third quarter and trades at a $298 million market cap.
Arrowhead will update Phase IIa HEPARC 2001 data at an R&D Day in September, which will include single administration 3.0 and 4.0mg/kg ARC-520 cohorts. The analyst noted he is not anticipating deeper S-antigen suppression than has been seen to date; he ultimately believes repeat ARC-520 dosing will be required to achieve the goal of 1.0 log reduction to induce seroconversion.

Stocks to Watch: MIFI, FORD, BITA, DDD

Novatel Wireless Inc (NASDAQ:MIFI) made a nice breakout today on volume. $2.89 is the next key level to watch on the upside.

Forward Industries, Inc. (NASDAQ:FORD) Worth eyeing, poised to breakout. Look at the two big volume days. That is serious accumulation. 1.93 is pretty much the pivot here. If it breaks tomorrow, we could see +$3 quickly.

Bitauto Hldg Ltd (NYSE:BITA) Flagging here + MACD crossover. Looking to see if stock can get over $27.56 for nice bounce into 30's

3D Systems Corporation (NYSE:DDD) still on high alert. Insiders are spending thousands of dollars ($615,584 / 47200 shares in August) to boost their stakes in the company. The bullish insider activity should indicate the stock is really worth buying. With a huge short interest any positive news could be a catalyst to move the stock up closer to $16.

Digital Realty Trust, Inc. (NYSE: DLR)

Digital Realty Trust, Inc., a real estate investment trust (REIT), through its controlling interest in Digital Realty Trust, L.P., engages in the ownership, acquisition, development, redevelopment, and management of technology-related real estate. It focuses on strategically located properties containing applications and operations critical to the day-to-day operations of technology industry tenants and corporate enterprise datacenter users, including the information technology departments of Fortune 1000 companies, and financial services companies. As of December 31, 2008, Digital Realty’s portfolio consisted of 75 properties, including 62 located in North America and 13 located in Europe. Digital Realty Trust has elected to be treated as a REIT for federal income tax purposes and would not be subject to income tax, if it distributes at least 90% of its REIT taxable income to its stockholders.
Take a look at the 1-year chart of Digital (NYSE: DLR) with the added notations:
1-year chart of Digital (NYSE: DLR)
After a nice rise back in January, but has since traded mostly sideways. During this sideways move, the stock found support at $62.00 (green). DLR has hit that support level a couple of times so far this year, and now the stock is testing that support once again. Traders could expect some sort of bounce, but if the $62.00 support were to break, lower prices should follow.

The Tale of the Tape: DLR has an important level of support at $62.00. A trader could enter a long position at $62.00 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.

Wednesday, August 26, 2015

What Now For the Dow Jones Industrial Average?

DJIND-D 8-25-2015

Martin Armstrong
The closing of the Dow at 15666.44 was below support at 15824.73. Additional support lies at 15176.26 and a closing beneath that level will warn of a break down to the 14334 area. We do have four Monthly Bearish Reversals under 15000 with a gap thereafter down to the 13650 area, and the long-term support starting at 12,221. Yearly does not come in until the 10000 level, so we are not talking about a reversal of fortune long-term. We could really break and that sends cash pouring into government bonds beyond anything we would contemplate.
Any paper rated BBB is becoming unsalable. We are starting to see capital even pick up high-rated corporate debt while shunning away from emerging market and local debt. So be on guard for we may be in a real Phase Transition in bonds and to accomplish that we may see really extreme levels in equities on the downside. This may not be 8000 points on the Dow as was the case from 2007 to 2009, but it could be 5000. If this week’s low gives way and we close August BELOW 15555, look out below. We need to wipe out the TV pundits.
We will update you on this development, but keep in mind that a break to new lows opens the pattern to the extreme.

These Stocks Go Up When Markets Crash

Investors are running for cover…
Financial markets around the world have had a meltdown over the last few days.
US stocks are coming off their worst week in four years…
The Euro Stoxx 600, an index that tracks 600 of Europe’s biggest companies, has lost 8% over the last five days...
And in China, the Shanghai Stock Exchange is down 38% since early June.
There’s been almost nowhere to hide from this global sell-off…except in gold.
The price of gold rose 3.8% last week, while US stocks lost 5.8%. (more)


GREEN - Favoured / Buy Zone
YELLOW - Neutral / Hold Zone
RED - Unfavoured / Sell / Avoid Zone

METRO INC. (MRU.TO) TSX - Aug 25, 2015



Braskem SA (NYSE: BAK)

Braskem S.A. produces and sells thermoplastic resins. Its Basic Petrochemicals segment offers olefins, such as ethylene, polymer and chemical grade propylene, butadiene, isoprene, and butene-1; BTX products comprising benzene, toluene, ortho-xylene, para-xylene, and mixed xylenes; fuels, including automotive gasoline and liquefied petroleum gas; intermediates, such as cumene; and other basic petrochemicals, which include ethyl tertiary butyl ether, solvent C9, and pyrolysis C9. The company’s Polyolefins segment produces polyethylene, including LDPE, LLDPE, HDPE, UHMWPE, and EVA; green polyethylene from renewable resources; and polypropylene (PP). Its Vinyls segment produces polyvinyl chloride, caustic soda, chlorine, hydrogen, caustic soda flake, and sodium hypochlorite. The company’s USA and Europe segment produces PP in the United States and Germany. Its Chemical Distribution segment distributes solvents, including aliphatic, aromatic, synthetic, and ecologically friendly solvents; engineering plastics; hydro carbonic solvents and isoparafins; and general-purpose chemicals.
Take a look at the 1-year chart of Braskem (NYSE: BAK) with the added notations:
1-year chart of Braskem (NYSE: BAK)
Unlike most energy related stocks, BAK actually hasn’t hit a new low recently. However, the stock’s trend does look like its peers within the energy sector, which is down. Over the past 5 months BAK has formed a key support level at $6.50, while also forming a trendline of resistance since November. At some point, one of those two lines will have to break.

The Tale of the Tape: BAK has an important level of support at $6.50. A trader could enter a long position at $6.50 with a stop placed under the level, or on a break through the trendline resistance. If the stock were to break below the support a short position could be entered instead.