Wednesday, September 24, 2014

Whole Foods Market, Inc. (NASDAQ: WFM)

Whole Foods Market, Inc. operates as a retailer of natural and organic foods. Its stores offer produce and floral, grocery, meat, seafood, bakery, prepared foods and catering, coffee, tea, beer, wine, cheese, nutritional supplements, vitamins, and body care products, as well as lifestyle products including books, pet products, and household products. As of July 30, 2014, the company operated 388 stores in the United States, Canada, and the United Kingdom.
Take a look at the 1-year chart of Whole Foods (Nasdaq: WFM) with the added notations:
1-year chart of Whole Foods (Nasdaq: WFM)
WFM peaked back in October at almost $65 and proceeded to lose over 40 percent of its value from there. The stock seems to have bottomed out a bit over the last 5 months. Over that period, the stock has commonly hit a very important level of resistance at $40 (blue). The one time WFM was able to break through $40 the stock ran up to $43. If the stock can break above $40 again, higher prices should follow.

The Tale of the Tape: WFM has a key level of resistance at $40. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $40.
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Did Alibaba’s IPO Signal a Top in the Stock Market?

An experienced researcher suggests the S&P 500 could drop up to 18%
by Mark Hulbert
Market Watch

CHAPEL HILL, N.C. (MarketWatch) — Wouldn’t it be ironic if this great bull market ended last Friday, on the occasion of Alibaba’s record-setting IPO, the largest in history?
More than a few of the investment advisers I monitor are entertaining that possibility, especially in light of Monday’s triple-digit loss in the Dow and the Nasdaq’s decline of more than 1%. Alibaba dropped over 4% on its second day of trading.
Those advisers point out that history’s most significant market tops have often been accompanied by high-profile events that prompt the average investor to overcome any residue of skepticism they may be harboring.
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Sprott Fund Manager Jason Mayer’s Guide to Resource Stock Profits

by JT Long
The Gold Report

Miners are having a tough time getting funded, and although Canadian oil and gas has performed well over the last few quarters, some companies might be overvalued. No wonder investors are confused. In this interview with The Mining Report, Jason Mayer of Sprott Asset Management examines near- and long-term plays that look poised to deliver returns, and shares his criteria for selecting profitable investments in volatile resource markets.
The Mining Report: In February, you gave a speech at The Vancouver Club that acknowledged the impact of investor fatigue on the junior mining equity space. Seven months later, are investors starting to get excited again about the space?
Jason Mayer: Investors have been reacting in fits and starts, and everyone is still very cautious. I track a number of funds, and I watch how they perform on a day-to-day basis. What I have found interesting is that a number of resource funds in Canada continue to be underweight, particularly in gold equities. I notice they underperform on days that gold stocks have good moves. The generalists out there among the institutional money have little to no presence in various gold equities. For the most part, people have abandoned the space.
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Gold Bounces on Syrian Air Strike News / By Dan Norcini / September 23, 2014
Looks like the news of air attacks in portions of ISIS-controlled Syria has been enough to spook some of the shorts in gold. After a ferocious wave of short-covering, gold has given back most of its gains for now.
After a near relentless decline, it was perhaps to be expected that any sort of news which might generate some safe-haven buying would run some shorts out of the market.
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Technical Breakdown Points to a Double-Digit Dip in Apache Corp. (NYSE: APA)

News about slowing demand in China coupled with a soaring U.S. dollar is putting pressure on commodities from energy to food. Today, I want to look at an energy stock that is currently locked in a declining trend that can offer a nice short side profit before its fundamentals kick in to send it back up.
Apache Corp. (NYSE: APA) is an oil and natural gas exploration and production company. However, it is viewed by many as more of a play on natural gas. Analysts expect natural gas demand to rise and generally seem to think the company's fundamentals are solid.
On the technical side, though, the trend is clear and it is not positive. Since peaking in July with an intraday spike above $104 and failure, APA has fallen to the $94.50 level currently.
APA Stock Chart
More interesting is its overall chart pattern since June. At first glance, it looks to be a simple trading range, but it is an easy argument to make that a head-and-shoulders pattern has formed. (more)
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