3 Dow Jones Stocks Looking for Comebacks: HPQ, AA, T

Since the advent of equity trading, investors have always tried to look for an edge in the markets, no matter how slight or seemingly spurious. It may surprise some investors to learn that the incomparable Charles Dow — whose innovative market research inspired the creation of the Dow Jones Industrial Average — originated the thesis that forms the backbone of the modern discipline of technical analysis.

The godfather of the markets would undoubtedly be amused that the entrance and particularly the exit of companies from the venerable Dow Jones index would become its own contrarian indicator.

A relatively new phenomenon labeled by some experts of the markets as the “index effect,” it proposes that the stock getting the boot from a major index — such as the Dow Jones — will eventually find greener pastures, many of them sooner rather than later. (more)

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Canadian Dollar weakening as U.S. interest rates rise: Poll

The Canadian dollar is likely to fall further in the coming months, hit by both a weak domestic economic outlook and an anticipated rise in interest rates in the United States, a Reuters poll showed.
Oil prices are also expected to remain weak for the rest of the year amid a persisting global supply glut, and is likely to continue to weigh on the commodity-linked loonie.
Still, analysts expect the currency will not fall as much as it did in March, when it hit its lowest levels since early 2009.  (more)

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Chart of the Day Alder Biopharmaceuticals (ALDR)

The Chart of the Day belongs to Alder Biopharmaceuticals (ALDR).  I found the bio medical stock when I used Barchart to sort the All Time High list for the stocks with the highest technical buy signals then used the Flipchart feature to review the charts,  Since the Trend Spotter signaled a buy on 5/6 the stock gained 88.16%.

Alder Biopharmaceuticals Inc. is a clinical-stage biopharmaceutical company. It discovers, develops and seeks to commercialize therapeutic antibodies. It is developing monoclonal antibodies comprising ALD403, for the prevention of migraine; and Clazakizumab, in the treatment of rheumatoid arthritis and psoriatic arthritis. Alder Biopharmaceuticals Inc. is headquartered in Bothell, Washington.

The status of Barchart's Opinion trading systems are listed below.  Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. 

technical indicators:

• 100% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 10 new highs and up 22.44% in the last month
• Relative Strength Index 68.80%
• Barchart computes a technical support level at 42.61
• Recently traded at 52.85 with a 50 day moving average of 38.77

Fundamental factors:

• Market Cap $1.95 billion
• Revenue expected to decrease 98.10% this year but increase again by 1,367.30% next year
• Earnings estimated to decrease by 643.30% this year and decrease again by an additional 14.10% next year
• Despite this poor projections Wall Street analysts issued 2 strong buy and 1 buy recommendation.

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Stocks To Watch: JUNO, MU, OREX

Juno Therapeutics Inc (NASDAQ:JUNO) starting to get some momo once again on 30m chart. The stock showed buying strength all day. The 55-55.38 area is a critical resistance region that can determine overall bias for the stock in short-term. Above this level could test 60 next. Note also that the MACD is about to make a bullish cross. On watch.

Micron Technology, Inc. (NASDAQ:MU) There was an unusually high call options activity today (strike $20 JAN2017). I believe this could signal a bottom. On the hourly time frame, technical indicators are giving some positive divergences. As noted yesterday, the bounce could start at any time.

Orexigen Therapeutics, Inc.(NASDAQ:OREX) is looking good to me. I am very pleased about how the stock has pulled back to its EMA13 after its large move on Monday. For the coming days, a breakout above the 5.19 level would signal the start of a new uptrend that could potentially test the EMA200 around the 5.80 area.

McDonald’s Corporation (NYSE: MCD)

McDonald’s Corporation operates and franchises McDonald’s restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America. The company’s restaurants offer various food products, soft drinks, coffee, and other beverages. As of December 31, 2014, it operated 36,258 restaurants, including 29,544 franchised restaurants comprising 20,774 franchised to conventional franchisees, 5,228 licensed to developmental licensees, and 3,542 licensed to foreign affiliates; and 6,714 company-operated restaurants.
Take a look at the 1-year chart of McDonald’s (NYSE: MCD) below with added notations:

After rallying in January and February, MCD has been trading mostly sideways since the March 1st peak. During the sideways move the stock has formed a common pattern known as a rectangle. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern.
MCD’s rectangle pattern has formed a resistance at $100 (red) and a $94 support (green). At some point the stock will have to break one of the two levels.

The Tale of the Tape: MCD is trading within a rectangle pattern. The possible long positions on the stock would be either on a pullback to $94 or on a breakout above $100. The ideal short opportunity would be on a break below $94.
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Trade of the Day: Buy Apple Stock AAPL

Apple Inc. (AAPL) — The company’s high-tech hardware, including the iPhone, iPad and Mac computers, make it one of the most well-known brands in the world. It is also a leader in customer satisfaction.
Capital IQ expects profits to be enhanced by increased volumes, more common components and an increased focus on software and services. Its analysts believe Apple’s “superior ecosystem” and new product launches will keep iPhone customer retention rates high. While it’s still early, they predict the company’s latest gadget, the Apple Watch, will be a success.
Capital IQ estimates earnings of $8.95 per share for fiscal year 2015 (ending in September), up from $6.45 last year, and $9.54 in FY 2016. Its analysts have a 12-month target of $150 on AAPL stock.
Free cash flow generation is a positive, and the company’s massive cash position of $194 billion can be used for stock repurchases, dividends and acquisitions.
Following a run from about $80 in April 2014 to above $134 in April 2015, AAPL stock has been consolidating in a rectangle with resistance at roughly $135 and support at its May low of $123.36. And under that support line is a trading range of support.
Sellers have dominated since March, but this high-quality technology stock is a traditional target for institutional buyers.
Since the current market crisis has little to do with Apple’s success, I believe it is time for traders to step up and enter orders to buy AAPL stock under $122 for a trade to $150 in four months. With a P/E ratio of 14 times estimated fiscal 2015 earnings, AAPL stock is also suitable for long-term investors who wish to hold shares for an indefinite period of time.

Crude Oil Weakness is Not Gold Friendly

by Dan Norcini
Trader Dan
Amidst all the talk about “Grexit” ( are the rest of the readers as sick of hearing about this as I am at this point?), one thing being overlooked, especially by those who keep calling for some sort of rip roaring surge higher in gold and silver, is the fact that crude oil is weakening.
In short, with many looking at the situation in Greece as contributing to a hit on economic growth, and with the fact that China is struggling, crude oil is moving lower as traders are concerned over a SLOWDOWN IN DEMAND.
Continue Reading at TraderDan.com…

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