Thursday, March 31, 2016
Wednesday, March 30, 2016
Tuesday, March 29, 2016
Monday, March 28, 2016
DJIA: Dow Jones Industrial Average, Look Out Below…
After
rallying well off triple bottom support at 15,500, the Dow is beginning
to run into very heavy overhead resistance where it’s failed more than
10 times since late 2014. If we fail to break to new highs, the Dow
could easily pullback substantially, near-term… especially with the
absence of any good news in the global economy.
Technically, momentum is beginning to turn south. RSI, MACD and Money Flow all signal overbought conditions in the market. What may not help things is Fed talk of a potential rate hike in April 2016, based on their findings that the U.S. economy is stronger than believed.
As we all know, the U.S. economy is not strong at all. Consumer spending, retail numbers, the U.S. savings rate, unemployment, manufacturing, etc. etc. is not as healthy as the Fed believes it to be. Consider buying to open the DIA June 2016 175 put up to $5.80 and / or the QQQ June 2016 107 put up to $4.
Technically, momentum is beginning to turn south. RSI, MACD and Money Flow all signal overbought conditions in the market. What may not help things is Fed talk of a potential rate hike in April 2016, based on their findings that the U.S. economy is stronger than believed.
As we all know, the U.S. economy is not strong at all. Consumer spending, retail numbers, the U.S. savings rate, unemployment, manufacturing, etc. etc. is not as healthy as the Fed believes it to be. Consider buying to open the DIA June 2016 175 put up to $5.80 and / or the QQQ June 2016 107 put up to $4.
XYL: Xylern Inc. , Long Term Breakout
Company Profile: Xylem Inc. engages in the design,
manufacture, and application of engineered technologies for the water
and wastewater applications. It operates through two segments, Water
Infrastructure and Applied Water. The Water Infrastructure segment
offers various products, including water and wastewater pumps, treatment
and testing equipment, and controls and systems, as well as filtration,
disinfection, and biological treatment equipment.
Fundamentals:Trailing P/E: 21.29
Forward P/E: 18.18
EPS: 1.87
Beta: 1.24
Dividend Yield: 1.56%
PEG: 2.43
P/S: 1.92
P/B: 3.37
Profit Margin: 9.31%
Operating Margin: 12.84%
ROA: 6.18%
ROE: 16.15%
Qtrly Earnings Growth (yoy) 18.80%
Current Ratio: 2.44
Additional Fundamental Data: http://finance.yahoo.com/q/ks?s=XYL
Technicals:
XYL has just broken out of a 24-month consolidation
New 52-week high
New all-time high
Buying momentum (RSI) is rising and positive
Buying volume is expanding
Support is at $38
XYL has been out performing the S&P 500 since September 2015
The safety stop is at $37.25
The 1st target is at $45.00
Suggested Trading Approach: Buy XYL at the current price level. If there is a pullback, as long as the price is at or above $37.75, wait for confirmation of support, and then add to positions.
US Weekly Economic Calendar
| time (et) | report | period | ACTUAL | forecast | previous |
|---|---|---|---|---|---|
| MONDAY, MARCH 28 | |||||
| 8:30 am | Advance trade in goods | Feb. | -$62.3 bln | -$62.2 bln | |
| 8:30 am | Personal income | Feb. | 0.1% | 0.5% | |
| 8:30 am | Consumer spending | Feb. | 0.0% | 0.5% | |
| 8:30 am | Core inflation | Feb. | 0.2% | 0.3% | |
| 10 am | Pending home sales | Feb. | 1.8% | -2.5% | |
| TUESDAY, MARCH 29 | |||||
| 9 am | Case-Shiller home prices | Jan. | -- | 5.7% | |
| 10 am | Consumer confidence index | March | 94.1 | 92.2 | |
| WEDNESDAY, march 30 | |||||
| 8:15 am | ADP employment | March | 205,000 | 214,000 | |
| THURSDAY, march 31 | |||||
| 8:30 am | Weekly jobless claims | 3/26 | 270,000 | 265,000 | |
| 9:45 am | Chicago PMI | March | -- | 47.6 | |
| FRIDAY, APRIL 1 | |||||
| 8:30 am | Nonfarm payrolls | March | 21,000 | 242,000 | |
| 8:30 am | Unemployment rate | March | 4.9% | 4.9% | |
| 8:30 am | Average hourly earnings | March | 0.2% | -0.1% | |
| 10 am | ISM manufacturing | March | 50.8% | 49.5% | |
| 10 am | Construction spending | Feb. | 0.0% | 1.5% | |
| 10 am | Consumer sentiment | March | 90.5 | 90.0 | |
| TBA | Motor vehicle sales | March | 17.4 mln | 17.4 mln | |
Friday, March 25, 2016
Gold, Dow Jones Industrial Average, Euro, Crude Oil
Posted Mar 24, 2016 by Martin Armstrong
Today will be the close for the week and this will be an important indicator. A closing in gold below 1237.50 will warn of weakness. We have important technical resistance at the 1245 level and a closing back below that breakout line will also warn that the upward momentum is starting to decline. Gold bounced off of the Weekly Bullish Reversal and came within 30 cents. That is not a very good indication that a continued rally should be expected. Typically, those who trade emotionally end up buying the high in anticipation of further advancement.
When we look at the Dow Jones, here too we failed to exceed the Weekly Bullish at 17750 after reaching only 17648. Last week’s closing was 17602 and a lower closing today will warn that the advance is starting to fizzle out. We have not been able to exceed the downtrend line technically. A closing below 17124 would be an outright sell signal.
Looking at the euro, the peak came in the week of the 17th at 11342. We do not think we can reach that 11600 level. In the case of the euro, the market has been unable to exceed the breakout line which currently stands at 11400. The oscillators are turning down as well. A closing below 11214 will be bearish, and a closing below 11087 will be a serious sell signal. Thereafter, a breach of the 10700 level will be devastating.
In Crude, the breakout line stands at 4347. Here too, we stopped just shy of it. We already elected a Weekly Bearish last Friday. The next key area to watch will be the 3400 level.
Overall, we are looking to May to provide the next turning point. So pay attention. If we start to elect bearish reversals on the weekly level, we may indeed see a decline unfold.
Thursday, March 24, 2016
Wednesday, March 23, 2016
Tuesday, March 22, 2016
Monday, March 21, 2016
US Weekly Economic Calendar
| time (et) | report | period | ACTUAL | forecast | previous |
|---|---|---|---|---|---|
| MONDAY, MARCH 21 | |||||
| 8:30 am | Chicago Fed national activity | Feb. | -- | 0.28 | |
| 10 am | Existing home sales | Feb. | 5.30 mln | 5.47 mln | |
| TUESDAY, MARCH 22 | |||||
| None scheduled | |||||
| WEDNESDAY, march 23 | |||||
| 10 am | New home sales | Feb. | 523,000 | 494,000 | |
| THURSDAY, march 24 | |||||
| 8:30 am | Weekly jobless claims | 3/19 | N/A | N/A | |
| 8:30 am | Durable goods orders | Feb. | -2.7% | 4.9% | |
| 8:30 am | Core capital equipment orders | Feb. | -0.5% | 3.9% | |
| 9:45 am | Markit PMI flash | March | -- | 51.3 | |
| FRIDAY, march 25 | |||||
| 8:30 am | Gross domestic product | Q4 | 0.8% | 1.0% (Q4) | |
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