Friday, August 15, 2014

Best and Worst Performing S&P 500 Stocks Year-to-Date

While there haven’t been any S&P 500 100% gainers so far in 2014, the staff at still thinks it’s important to review the biggest winners and losers and they also point out the key factor that traders should watch over the remainder of the year.
The average S&P 500 (SPX) (SPY) stock is up 5.89% year-to-date, and 65.4% of the index is in the black for the year.  Below is a list of the 40 best performing S&P 500 stocks, so far, this year.
As shown, there aren't any 100% gainers in the index through Tuesday, and we're going to need to see some big gains over the next three and a half months if the index is going to register any doubles this year.  New Field Exploration (NFX) is currently the biggest winner in 2014 with a gain of 63.82%.  Another energy company—Nabors (NBR)—ranks second with a gain of 58.09%.  Under Armour (UA), Electronic Arts (EA), and Green Mountain (GMCR) round out the top five, all with YTD gains of more than 50%.  (more)

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Rising Interest Rates? Tell Me About Them!

The "No- Brainer" can't miss trade coming into the first of this year was that interest rates were going to rise. 90 Days ago I shared that bond prices were breaking out, discussed in the "Tell Me About Rising Rates" post (see here).
 One of the key reasons to establish a long bond position was due to this: Interest rates had the largest 18-month rally in the past 30-years, up 50% more than the seven largest rallies in the past 30-years!
MarketWatch reported earlier this year that 100% of economist predicted that rates would rise. Wonder how that prediction has worked out? Year to date, TLT is up twice as much as the S&P 500.
The chart above highlights that the yield on the 10-year note has been falling since the first of the year and is now on rising support. IF support breaks, the next key support line comes into play around 15% below current levels.
If yields break support, would they be sending a message about the strength of the global economy? What happens here at support I feel is important to more than just the bond market!

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EXACT Sciences Corporation (NASDAQ: EXAS)

Exact Sciences Corporation, a molecular diagnostics company, focuses on developing diagnostic screening products for the early detection and prevention of colorectal pre-cancer and cancer. The company develops the Cologuard, a non-invasive stool-based DNA colorectal cancer-screening test that is designed to detect pre-cancerous lesions or polyps, and each of the four stages of colorectal cancer. Its Cologuard test includes proprietary and patented methods that isolate and analyze the human DNA that are shed into stool every day from the exfoliation of cells that line the colon; and also protein marker to detect blood in the stool, utilizing an antibody-based fecal immunochemical test. The company’s stool-based DNA colorectal cancer screening technology also focuses on the inflammatory bowel disease.
Take a look at the 1-year chart of Exact (Nasdaq: EXAS) below with added notations:
1-year chart of Exact (Nasdaq: EXAS)
EXAS has essentially been trading sideways for the last 2 months, while forming 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. EXAS’ rectangle pattern has formed a $17.50 resistance (red) and a $15 support (blue). A break above $17.50 would also be a new 52-week high.

The Tale of the Tape: EXAS is trading within a rectangle pattern. The possible long positions on the stock would be either on a pullback to $15, or on a breakout above $17.50. The ideal short opportunity would be on a break below $15.
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Dreamworks: DWA Is In The Dumps -- Time To Buy?

Every Friday, I scan the movie reviews to see if there is a new film I want to go see. And every week, I fail to find anything that appeals to me.
Many others must feel the same way, seeing as box office receipts are off sharply this year, making this a season of misery for film studios. And no studio is feeling the pain more than Dreamworks Animation SKG (NYSE: DWA), which has slid 25% since I panned the company's business model five months ago.
Shares had already been in freefall and are now off more than 40% this year.

Yet with much of the bad news now priced into the stock, Dreamworks deserves a fresh look. The company is making moves now that should yield solid rewards in a few years.
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Eaton Vance Corp (NYSE: EV)

Eaton Vance Corp., through its subsidiaries, engages in the creation, marketing, and management of investment funds in the United States. It also provides investment management and counseling services to institutions and individuals. Further, the company operates as an adviser and distributor of investment companies and separate accounts. As of October 31, 2004, the company provided investment advisory or administration services to approximately 150 funds; approximately 1,300 separately managed individual and institutional accounts; and participated in approximately 40 retail-managed account broker/dealer programs. It markets and distributes shares of funds through a retail network of national and regional broker/dealers, banks, insurance companies, and financial planning firms.
Take a look at the 1-year chart of Eaton (NYSE: EV) with my added notations:
1-year chart of Eaton (NYSE: EV)
After its steep January drop, EV has been range bound since February. Over that period of time the stock has formed a clear resistance at $38.50 (red). In addition, the stock has also created a common level of support at $35 (green). At some point the stock will have to break one of the two levels the consolidation has created.

The Tale of the Tape: EV has clear levels of support ($35) and resistance ($38.50). The possible long positions on the stock would be either on a pullback to $35, or on a breakout above $38.50. The ideal short opportunity would be on a break below $35.
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