Monday, March 28, 2016

P: Pandora Media, Double Breakout Coming Soon?

CTSH: Cognizant Technology Solutions, Breakout of Ascending Triangle and Downtrend Line

AMZN: Amazon, Breakout Projects to $680

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.

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.
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:

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
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%
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
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

GCNYNF-W 3-24-2016
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.
DJIND-W 3-24-2016
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.
CRUDE-W 3-24-2016
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.

Monday, March 21, 2016

DNN: Denison Mines, Finally Forming a Long Term Bottom?

LXU: LSB Industries, Breakout Confirmed by Indicators, $16 Fills the Gap

EROS: Eros International, 4 Month Resistance Breakout, Want OBV to Breakout to Confirm

CRAY: Cray, Possible Swing Trade With Stops at Trend Lines, Watch Price and Indicators

CENX: Century Aluminum, Possible Swing Trade But Trendlines Would Be Your Stop Loss

WDC: Western Digital, Resistance Breakout Projects to $64

US Weekly Economic Calendar

time (et) report period ACTUAL forecast previous
8:30 am Chicago Fed national activity Feb.   -- 0.28
10 am Existing home sales Feb.   5.30 mln 5.47 mln
  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
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)