Monday, June 29, 2015

Stocks To Watch: NTRS, GIGA, MSFT, WBAI

Northern Trust Corporation (NASDAQ:NTRS) is butting up against 78.88 resistance, which is its all-time high. A break through this key resistance level could lead to $80-80.5, projected by the upper channel line. Thie price has been in an orderly bullish up-channel since early Frebruary. Worth watching for a breakout.

It looks like Giga-tronics, Incorporated (NASDAQ:GIGA) is starting to turn back up and indicators are giving the first bullish signs. On Friday it closed just slightly below its 50-day EMA, which if broken could accelerate the stock toward its June highs around the 2.20 area. A volatility squeeze seems eminent. You want to watch the stock closely as GIGA can move quickly and you want to be ready for this move once it happens.

Microsoft Corporation (NASDAQ:MSFT) after topping in April, the stock has been in decline, making new lower lows and lower highs.The stock has a strong support at about $45 and the 100-day EMA is being defended as well. Ñext week the Bulls need to hold price above this key level on daily closing basis or the Bears will likely keep pressing for the gap fill. Keep the stock on your trading screen for Monday.

Here's a potential breakdown play - 500 dot com Ltd (NYSE:WBAI). Daily technical chart shows a rising wedge pattern with a negative MACD divergence implying that a trend reversal is on the cards.

Canadian Dollar overvalued by 10%, dragging on Canadian growth: CIBC

CIBC World Markets says the loonie has been overvalued by 10 per cent since the recession, which has saddled Canadians with the equivalent of a 90 basis point higher interest rate from the Bank of Canada.

“Oil’s tumble has brought the Canadian dollar down with it,” said Nick Exarhos and Avery Shenfeld, economists at CIBC World Markets. “But our currency is still richer than it may look.”

The loonie has recently been trading at 81 cents against the U.S. dollar, and is down some 6 per cent against the greenback so far this year. (more)

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Visa Inc (NYSE: V)

Visa Inc., a payments technology company, operates as a retail electronic payments network worldwide. The company facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. It owns and operates VisaNet that is involved in the authorization, clearing, and settlement of payment transactions; and provision of fraud protection for account holders and assured payment for merchants. The company also offers a range of issuer processing services for participating issuers of Visa debit, prepaid, and ATM payment products. In addition, it provides electronic payment, risk management, and payment security solutions to online merchants; digital goods transactions services in online games, digital media, and social networks; and mobile financial services for mobile network operators and financial institutions in developing economies.
Take a look at the 1-year chart of Visa (NYSE: V) below with my added notations:
1-year chart of Visa (NYSE: V)
V has created a couple of important price levels to watch. First off, the stock has formed a relatively clear resistance at $70 (red), which would also be a 52-week high breakout if V could manage to move above it. In addition, the stock is climbing a short term, up-trending support level (green) over the last 5 months. These two levels combined have V stuck within a common chart pattern known as an ascending triangle. Eventually, V will have to break one of those (2) levels.

The Tale of the Tape: V has an up trending support and a 52-week resistance level to watch. A long trade could be made on a pullback to the support, or on a break above $70. A break below the up trending support could be an opportunity to enter a short trade.
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The Chinese Stock Bubble Bursts: $SSEC

When financial authorities are in full-blown panic, they cut rates.
Take a quick glance at this weekly chart of the Shanghai stock market:
1. Uptrend broken: check
2. MACD rolled over into a sell signal: check
3. Stochastic breaks down: check
Any questions on what's happening to the Chinese stock market bubble?
Those still entertaining hopes the bubble hasn't burst might want to ponder the frantic flailings of Chinese authorities as A Desperate China Cuts Key Policy Rates.
When financial authorities are in full-blown panic, they cut rates. When financial authorities are in full-blown panic, they deny being in a panic, which proves they are in a full-blown panic.
A reasonable technical target is the 200-week moving average, roughly 50% of the recent high. "Impossible," say recent buyers of Chinese stocks. Yes, of course it is. The authorities will never let the market decline by 50%. As always, this time it's different.
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US Weekly Economic Calendar

time (et) report period ACTUAL CONSENSUS
10 am Pending home sales May   -- 3.4%
9 am Case-Shiller home price index April   --  
9:45 am Chicago PMI June   -- 46.2
10 am Consumer confidence June   97.4 95.4
8:15 am ADP employment report June   -- 201,000
9:45 am Markit PMI June   -- 54.0%
10 am ISM June   53.0% 52.8%
10 am Construction spending May   0.6% 2.2%
TBA Motor vehicle sales June   17.2 mln 17.8 mln
8:30 am Weekly jobless claims June 27
273,000 271,000
8:30 am Nonfarm payrolls June   230,000 280,000
8:30 am Unemployment rate June   5.4% 5.5%
8:30 am Average hourly earnings June   0.2% 0.3%
10 am Factory orders May   -0.2% -0.4%
  None scheduled
Independence Day
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