Monday, April 21, 2014

A. O. Smith Corp (NYSE: AOS)

A.O. Smith Corporation manufactures and sells water heaters and boilers to the residential and commercial end markets primarily in the United States, Canada, China, Europe, India, and the Middle East. It operates in two segments, North America and Rest of World. The company offers a line of electric, natural gas, liquid propane, solar tank, gas tankless, and electric water heaters for applications in residences, restaurants, hotels and motels, laundries, car washes, and small businesses; and residential and commercial boilers primarily for space heating applications in hospitals, schools, hotels, and other large commercial buildings. It also provides boilers and expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, and related products and parts. The company sells its products through independent wholesale plumbing distributors, hardware and home center chains, and manufacturer representative firms. It sells water heaters to approximately 5,900 retail outlets, as well as water treatment products to 2,900 retail outlets in China.
To review A.O.’s stock, please take a look at the 1-year chart of AOS (A.O. Smith Corporation.) below with my added notations:
1-year chart of AOS (A.O. Smith Corporation.)
AOS has formed a key level of support at $45.00 (blue) over the last (3) months that it has been struggling to hold. In addition, the stock has created a down trending resistance starting from the end of December (green). These two lines combined have AOS stuck trading within a common chart pattern known as a descending triangle, and at some point, the stock has to break support or break its string of lower highs.

The Tale of the Tape: AOS has formed a descending triangle pattern. A short trade could be made on a break of the $45.00 support level. A break through $47.00 would break the down trending resistance and would set up a potential long trade.
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Why Microsoft (Nasdaq: MSFT) Stock Is Going to $100

Shah Gilani, a retired hedge-fund manager who runs the Capital Wave Forecast and Short Side Fortunes advisory services here at Money Map Press, often makes counter-intuitive picks - like when he first recommended Microsoft Corp. (Nasdaq: MSFT) stock last summer.
Since then, Microsoft stock is up about 16% and trading at about $40 a share. But Gilani believes MSFT is doing a lot of things right and is destined to go much higher from here. 
Recently, Money Morning Executive Editor William Patalon III caught up with Gilani to get an update on why he thinks Microsoft is still among tech stocks to buy now.
Here's a partial transcript of that discussion.  (more)

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Cambria Global Value ETF (GVAL) : This Fund Offers the Cheapest Stocks in the World

One of the big revelations for financial market strategists and pundits in 2014 has been the outperformance of value stocks.
This really shouldn’t be a surprise, though, as value tends to outperform growth over the long term.
For example, the Russell 1000 Value Index has returned an annualized 9.7% over the past decade, compared to the Russell 1000 Growth Index’s 8.4% annual total return.
But the rotation into value isn’t the only development we should be watching — foreign stocks have started to outperform the U.S. market, too.  (more)

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Starbucks (NASDAQ: SBUX) Stock is in Danger of a Double-Digit Collapse

They say that half the battle is knowing which groups to own -- or to avoid. The reason is that a big chunk of a stock's movement can be attributed to its industry. If there is enough business to go around, then every stock with a decent balance sheet should benefit.
Conversely, when things sour for an industry, even household names can suffer. That is what we see now for the restaurant sector and Starbucks (NASDAQ: SBUX) in particular.  (more)

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Chart of the Day Halliburton (HAL)

The "Chart of the Day" is Halliburton (HAL). I found the stock by scanning the Barchart "All Time High" list for the best technical indicators and then used the Flipchart function to review the charts. HAL rallied sharply in Feb-March, paused in early April, and then rallied this week to a new record high. TrendSpotter was long during Feb-March, took profits in early April, and just turned long again on Tuesday at $59.97.

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US Weekly Economic Calendar

time (et) report period Actual forecast previous
8:30 am Chicago Fed national activity March   -- -0.18 3-month
10 am Leading indicators March   -- 0.5%
Tuesday, APRIL 22
9 am FHFA home price index Feb.   -- 7.4% y-o-y
10 am Existing home sales March   4.55 mln 4.60 mln
9 am Market "flash" PMI April   -- 55.5
10 am New home sales March   450,000 440,000
Thursday, APRIL 24
8:30 am Jobless claims 4/245   315,000 304,000
8:30 am Durable goods orders March   1.8% 2.2%
9:55 am UMich consumer sentiment April   82.6 82.6
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