Friday, December 4, 2015

Franklin Resources, Inc. (NYSE: BEN)

Franklin Resources, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to individuals, institutions, pension plans, trusts, and partnerships. It launches equity, fixed income, balanced, and multi-asset mutual funds through its subsidiaries. The firm invests in the public equity, fixed income, and alternative markets. Franklin Resources, Inc. was founded in 1947 and is based in San Mateo, California.
Take a look at the 1-year chart of Franklin (NYSE: BEN) below with my added notations:
1-year chart of Franklin (NYSE: BEN)
BEN has hit the $42 mark (red) as resistance multiple times in the past month. In addition, the stock has been climbing a trend line of support (green) since mid-October. Eventually, the stock will have to break either the $42 resistance or the trendline support.

The Tale of the Tape: BEN is winding up between two key levels. A long trade could be made at the trendline support or on a break above $42. A break below trendline would be an opportunity to enter a short trade.

Gold Capitulation ?

The technical charts on gold are suggesting the start of a fresh leg lower in price. The loss of chart support near the $1075-$1070 level, and the subsequent inability of the metal to move back above that level, has led to both long liquidation on the part of the specs as well as fresh shorting.

On the intermediate term chart ( Weekly) price appears headed for the lower line of the downtrending price channel that has contained gold since April of 2014. Currently, that targets a potential move to down near $1030-$1020.
As noted in a previous post detailing this weekly chart, the metal has actually formed a new and steeper downtrending channel since March/April of this year.  (more)

Big Moves in All Markets in the Intermarket Grid Dec 3: S&P, Gold, Crude, Bonds, Dollar, Euro

The one-two punch of Mario Draghi’s ECB announcement with the Fed’s “we’re going to raise rates in December we promise!” statement contributed in part to big price moves and short-term trend reversals in all main markets we follow.
Let’s take a quick snapshot of today’s Money Flow grid across six (futures) markets:

Fundamental news and Central Bank policies aside, let’s focus on the knee-jerk reactions in today’s market.
First, stock prices collapsed, continuing their sell-signal down away from 2,100 (@ES top left chart).

The Dollar Index (@DX – middle right chart) collapsed today, falling from divergences against resistance.

The sudden intraday collapse in the US Dollar instantly boosted most commodities including Gold and Oil.

Chart Gold (@GC) in the upper right and Oil (@CL) in the middle left chart.

The movements here aren’t as dramatic as other markets, as these moves are currently counter-trend retracements.
Finally we see the Euro (@EC bottom right) surging at the same time the Dollar collapsed.

Perhaps the most surprising development today is the instant collapse in Treasury prices as seen via the 10-Year Treasury Note (@TY – lower left).

In sum, we have the Euro surging while commodities rally; US Stocks, the US Dollar, and the US 10-Year Treasury Note collapsed intraday.