Tuesday, June 2, 2015

This chart could be a big bullish sign for stocks

From Tom McClellan’s Chart in Focus:

We focus a lot on the Advance-Decline (A-D) data, which is the basis for the McClellan Oscillator and Summation Index plus other indicators. But we also like to watch what the Up Volume (UV) and Down Volume (DV) numbers are doing.  (more)
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Colgate-Palmolive (CL) , Clorox (CLX): Consumer Staples With Compelling Dividend Growth

I can virtually guarantee that you’ve used a product made by either Colgate-Palmolive (CL) or Clorox (CLX) in the past 24 hours.
These two companies produce some of the most popular household goods on the planet, including Irish Spring soap, Colgate toothpaste, Speed Stick deodorant, Palmolive dish detergent, Brita water filters, Glad garbage bags, Fresh Step kitty litter, and Tilex bathroom cleaner.
And given the ubiquity of their brands, it’s no surprise that investors feel comfortable owning the companies’ stocks. On top of that, Colgate-Palmolive and Clorox are both S&P 500 Dividend Aristocrats.
So what’s not to like about these consumer staples giants?
Plenty, as it turns out…
Expensive Consumer Staples Stocks
As you can see in the table above, CLX has a solid dividend yield of 2.8%. However, the company has increased its shares outstanding by 2% over the past 12 months, giving it a measly total yield (dividend yield plus one-year net buyback percentage) of 0.8%. CL’s total yield is also lackluster.  (more)

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Parsley Energy Inc (NYSE: PE)

Parsley Energy, Inc., an independent oil and natural gas company, engages in the acquisition, development, production, exploration, and sale of crude oil and natural gas properties in the Permian Basin located in West Texas and Southeastern New Mexico. As of December 31, 2014, its acreage position consisted of 133,274 net acres, including 103,036 net acres in the Midland Basin and 30,238 net acres in the Delaware Basin; and estimated proved oil and natural gas reserves were 90.9 MMBoe.
Take a look at the 1-year chart of Parsley (NYSE: PE) below with my added notations:
1-year chart of Parsley (NYSE: PE)
PE has formed a clear resistance at $18 (red) over the last 2 months. In addition, the stock has been climbing a short-term, trend line of support (green) since the beginning of March. These two levels combined had PE stuck within a common chart pattern known as an ascending triangle. Eventually, the stock will have to break one of those levels.

The Tale of the Tape: PE is trading within an ascending triangle. A long trade could be made at the trendline support or on a break above $18. A break below trendline would be an opportunity to enter a short trade.
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US Dollar About to Peak & Oil Bottom Video



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