Comerica Incorporated (NYSE: CMA)

Comerica Incorporated, through its subsidiaries, provides financial products and services primarily in Texas, Arizona, California, Florida, and Michigan. The company operates in three segments: Business Bank, Retail Bank, and Wealth Management. The Business Bank segment offers various products and services, including commercial loans and lines of credit, deposits, cash management, capital market products, international trade finance, letters of credit, foreign exchange management services, and loan syndication services to middle market businesses, multinational corporations, and governmental entities. The Retail Bank segment provides small business banking and personal financial services consisting of consumer lending, consumer deposit gathering, and mortgage loan origination. The Wealth Management segment provides products and services, including fiduciary services, private banking, retirement services, investment management and advisory services, and investment banking and brokerage services. Please take a look at the 1 yr. chart of CMA (Comerica Incorporated) that I have shown below with my added notations: CMA has formed a long channel upward over the last (8) months. A channel is simply formed through the combination of a trend line support that runs parallel to a trend line resistance.  When it comes to a channel any (3) points can start the channel, but it’s the 4^th test and beyond that confirm it. You can see that CMA has multiple test points between the channel resistance (blue) and the channel support (red). Following the CMA channel can provide you with both long and short trading opportunities.

The Tale of the Tape: CMA has formed a common chart pattern know as a channel, in this case, an up-channel. A long opportunity could be entered on a pullback to the channel support, which is approaching $40. Short trades could be entered at channel resistance OR if CMA were to break below the channel support.
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Jay Taylor: Turning Hard Times Into Bad Times

click here to listen   Hour 1      Hour 2
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Mercadolibre Inc. (NasdaqGS: MELI) Will Be the Next ‘eBay’

If you’ve followed along with me over the last few months you know I’m a big believer in U.S. technology.

But I’ll go anywhere in search of profits for you.

So if there’s a foreign firm that offers us a chance to diversify our holdings — and make a killing in the process – you can bet that I’ll tell you about it.

In fact, that’s just what I’ve found – a non-U.S. firm that’s actually one of the world’s most-successful e-commerce plays.  (more)

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Oil Prices will continue to Rise

John Manfreda of Wall Street for Main Street Interviewed Josh Young from Young Capital Management. They discussed, his background in Economics, Gold, Oil prices, Cost of Oil production, Energy Infrastructure, Geo-political Unrest, and many more topics.
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Charles Nenner: US Headed for Recession and It's 'Going to Be Bad'

Technical analyst Charles Nenner didn’t mince words when asked about the United States facing another recession.

"It's going to be bad," Nenner told Newsmax TV in an exclusive interview.

"It's very scary because we didn't have a lot of growth and when this economic expansion is over, we're going to be in trouble," the founder and president of the Charles Nenner Research Center said. (more)

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Short the Market If This Happens

By some measures, stocks just suffered their worst week in 2013. Despite that setback, the S&P 500 is less than 3.2% from its all-time high. Until prices fall further, the weight of the evidence shows stocks are still in a long-term uptrend.

SPY Nears Support
SPDR S&P 500 (NYSE: SPY) fell for the second week in a row, losing 2.06% last week. Other major market indexes were also down as traders reacted to news that was generally considered to be negative. Among the most important news stories was that a number of companies, including Cisco (NASDAQ: CSCO) and Wal-Mart (NYSE: WMT), lowered their outlook for the rest of the year.
Even good news was bad news to traders last week. Retail sales exceeded expectations, and the number of initial unemployment claims fell to a six-year low.

The problem with good news is that the Federal Reserve has said they will taper their buying and eventually stop purchasing $85 billion worth of long-term bonds every month when unemployment declines sufficiently. Traders are concerned that the market could fall if the Fed stops buying long-term bonds.

Continued good news about the economy could be the cause of a stock market decline.

For now, SPY seems to be near a level where it should find support. The chart below shows a small head-and-shoulders pattern. The "S" on the left side is the first shoulder in the pattern. This forms when prices pull back after trending higher. The "H," or head, is the new high reached after the initial pullback. The "S" on the right is the second shoulder, which forms after a rally fails to reach a new high. The pattern could be labeled differently, but the general idea is the same for any type of topping pattern.

Almost all chart patterns use the idea of symmetry to find price targets. The eventual breakout is expected to be equal to the size of the pattern. In this case, the distance between the bottoms of the shoulders and the top of the head is equal to about $3.50. This value is subtracted from the breakout point and a target of $164 is drawn on the chart above.  (more)

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Fluor Corporation (NYSE: FLR)

It is very common for me to discuss Head and Shoulders (H&S) patterns in my articles. An H&S pattern is a reversal pattern that forms after an uptrend. A textbook H&S pattern starts to form when a stock rallies to a point and then pulls back to a particular level (shoulder #1). Next, the stock will rally again, but this time to a higher peak (head) than the previous shoulder. After forming the head, the stock will pull back to the same support as the first shoulder did. Finally, the stock rallies a 3rd time, but not as high as the head (shoulder #2). The level that has been created by all 3 of the pullbacks is simply a support level referred to as the “neckline”. The formation of an H&S pattern warns of a potential reversal of the uptrend into a possible downtrend. As with any chart pattern, a trader will usually not want to act on the pattern until the stock “confirms” the pattern. Confirmation is the break of the key level that has been created by the pattern. In the case of an H&S, confirmation would be when the stock breaks the neckline (support).

H&S patterns can also form upside-down and the pattern would be called an Inverse Head and Shoulders. It too is considered a reversal pattern after a downtrend, but it can also be a continuation pattern in an uptrend. The neckline would be a resistance rather than a support.

To see such an Inverse H&S pattern potentially being formed, please take a look at the 1-year chart of FLR (Flour Corporation) below with my added notations:
FLR rallied strongly from November through January and has since formed what appears to be an Inverse H&S (blue). I have noted the head (H) and the shoulders (S) to make the pattern more visible. (If it helps to visualize, imagine this pattern flipped upside down and you would have a regular H&S pattern.) FLR's “neckline” resistance is at the $67 level (red). FLR would confirm the pattern by breaking up through the $67 resistance, and if it does, the stock should be moving higher from there.
Keep in mind that simple is usually better. Had I never pointed out this Inverse H&S pattern, one would still think this stock is moving higher simply if it broke through the $67 resistance level. In short, whether you noticed the pattern or not, the trade would still be the same: On the break above the key $67 level. If that break occurs, the stock would also be hitting a new 52-week high.

The Tale of the Tape: FLR seems to have formed an Inverse Head & Shoulders pattern. A long trade should be entered on a breakout above the $67 level with a stop placed under that level.
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