American Campus Communities, Inc. is an independent equity real
estate investment trust. The firm invests in the real estate markets of
the United States. It primarily engages in developing, owning, and
managing high-quality student housing communities. The firm diversifies
its functions across acquisition, design, financing, development,
construction management, leasing and management of student housing
properties. American Campus Communities, Inc. was formed in 1993 and is
based in Austin, Texas.
To review American's stock, please take a look at the 1-year chart of
ACC (American Campus Communities, Inc.) below with my added notations:
After a January to September sell-off, ACC has been trading sideways
for the last 3 months. Over that period of time, the stock has formed a
clear resistance level at $37 (red). In addition, the stock has also
created a good level of support at $33 (blue). These two levels combined
have ACC stuck within a common chart pattern known as a rectangle, and
at some point the stock will have to break one of those levels.
The Tale of the Tape: ACC has created a common
rectangle pattern. The possible long positions on the stock would be
either on a pullback to $33, or on a breakout above $37. The ideal short
opportunities would be on a break below $33 or on a rally up to $37. Please share this article
Trades don’t get easier than this one. I like clean charts with clean
entries and well-defined risks. Microsoft has all of those…
To start, here is a weekly chart showing the October 2007 highs at
$37.50 before getting crushed. The stock lost 60% of it’s value over the
next 15 months or so. After being boring for a while, it finally got a
little rally, but only back to the 2007 highs. Now that everyone is
excited about it (92% bullish sentiment according to Stocktwits) – I think it’s an obvious fade:
So now that we know it’s something we want to short, it’s all about the entry and defining the risk. On Wednesday $MSFT
was able to temporarily rally above that key $37.50 level from 2007.
But as prices inched higher, momentum was already rolling over. Here is a
short-term look using 10-min bars. Look at the bearish divergence
between price and the Relative Strength Index plotted below.
We have an easy out. I can’t put a new
position on unless I have well-defined risk, no matter how much I love
the trade. In this case, I think you’ve got options. You can use
Wednesday’s highs as a stop or you can wait until we’re below 37.50 and
use anything above that as the stop. You can even use the Wednesday
morning pop highs in the 37.70s. It really all depends on your risk
tolerance and time horizon.
Easy trade. Right or wrong I can hold my
head up high knowing that we got a good entry point with an extremely
advantageous risk/reward ratio. That’s all I can ask for.
Four years and a few trillion dollars later, and the
jury is in, so to speak, on the efficacy of what has been called "the
greatest experiment" in the history of monetary policy.
Quantitative easing doesn't work.
At least not towards achieving
either of the central bank's two core objectives; full employment and
price stability. Sure it boosts asset prices, particularly in the stock
market, and you bet it helps keep interest rates artificially low, but
when it comes to completing that circle, and encouraging companies to
hire, it's a hard argument to make.
"Monetary policy, we think, has kind of proven that it does not add jobs," says Brian Belski, chief investment strategist at BMO Capital Markets,
in the attached video. "It's really fiscal policy and fundamentals that
add jobs," he says, noting that even Ben Bernanke has repeatedly made
that clear. (more)