And the Winner Is…

Congratulations to first-time winner “carol” for correctly guessing the mystery chart in my latest Name That Chart post.

The correct answer is that the mystery chart was the monthly timeframe of Brazilian bank, ITUB.

Several of these emerging market banks have performed well of late.

Here is what carol had to say:

1. ITUB
2. Brazilian regional bank
3. The stock will move higher throughout 2014.

What do you think about ITUB?

Note the monthly chart threatening a breakout from consolidation (light blue lines).

Earnings are scheduled for April 30th, this week.

Thank you to everyone who played.

I will be back later with ideas for Monday.

But I already gave tight analysis in my latest Weekly Strategy Session published, earlier today. Check it out!

______________________________________________________________

 

Comments »

Hint this week: Monthly chart dating back to 2006.

Try to guess:

1. The ticker symbol of the chart;
2. The sector in which the stock trades; and
3. Whether or not you think the stock will move higher or lower throughout 2014 or will break lower.

Thank you to everyone who has been playing along.

Please click on chart to enlarge

[Members: My latest Weekly Strategy Session has been published]

________________________________________________________________

Comments »

Courtesy of @RyanDetrick on Stocktwits, when we have the rare down January, but up February in the markets, what does May through October do?

It is not pretty, with the Dow Jones Industrial Average down -6%, on average.

On top of the price action in the leaders, this is another cause for concern despite relative strength in the Dow’s mega caps of late.

Comments »

Written and Directed by John Singleton, Boyz n the Hood (1991) led the strong line of films in the “gangsploitation” genre of the early-mid 1990′s.

Starring  Cuba Gooding Jr., Laurence Fishburne, and Ice Cube, South Central Los Angeles takes center stage as we see the ghetto life affect several young men.

See also: Menace II Society (1993), and New Jersey Drive (1995).

Comments »

The following is just a small excerpt from last Sunday, April 20th, in my most recent Weekly Strategy Session (please click on that hyperlink for details about trying it out). which I published for members and 12631 subscribers. 

Even if the S&P 500 and Dow Jones Industrial Average remain resilient, perhaps marginally printing fresh new highs, and do not immediately follow the Nasdaq and Russell lower to their own respective 200-day moving averages, it is likely that the marquee growth stocks housed in the Nasdaq and Russell have already peaked for this multi-year bull run. As a result, rallies in the prominent marquee names, such as AMZN FB GOOG NFLX PCLN, biotechs, and other growth leaders, should be sold. 

As evidence to support the above assertion, consider the weekly charts of both the Nasdaq and Russell. As I noted last weekend, breaks in very steep trends (light blue channel lines on each chart, dating back to November 2012) are important and command your respect. Last week, we saw both indices reverse higher off their lower weekly Bollinger Bands, as well as the 50-period weekly moving averages (dark blue line). That initial bounce is almost to be expected, barring an outright crash. Now, again, comes the hard part. 

The fact remains that these very steep, long-term trends are broken and even a temporary bounce back inside these channels is not likely to immediately heal all of the high sell volume damaged sustained in leaders in recent weeks. Now, more than ever, traders should know their precise timeframes for all trades and acknowledge the underwhelming performance even in the broad market bounce late-last week.

Put another way, rallies remain suspect.

Probing deeper into the thesis that growth stocks have largely peaked for this bull, consider two leaders with earnings coming up this week: AMZN FB. Both stocks have room for another exuberant rally after earnings, but that could also be within the context of still-damaged charts.

On their daily timeframes, note that the recent bouts of selling have come after steep, multi-quarter bull runs higher. Similar comments apply to biotechs and other marquee leaders over the past few years.

Please click here to continue reading

Comments »

Comments »