Trucharts.com - Blog update and Stocks to watch:
Another week and another set of new records and new highs. There is no stopping this train. Excellent jobs report (321K new jobs created). Oil dropped this week and so did the commodities. Energy stocks are getting slammed and so are commodity stocks. We think there maybe an end coming to the commodity cycle - many have indicated that this is typically a 15 year cycle that started in 2000 and will end by 2015. This will impact commodity stocks - so if you have commodity stocks in your portfolio - like FCX, BHP, RIO - be mindful and this end to the commodity cycle may impact the dividends being paid out by the commodity stocks. Another concern recently has been the drop in the oil sector stocks and their issuance of junk bonds to fund their exploration - the main concern is related to the capability of these companies to pay back this debt due to the drop in oil prices (check JNK). Financial stocks are breaking out. We are watching BAC (Bank of America) - here is the chart (weekly) - looks like it is going to breakout (Other stocks to watch in this sector - financial - JPM, XLF, MS, ETFC, AMTD)
Gold is still holding between 1100 - 1200 - watching this closely - we still think this is headed to 1000.
Health stocks and airline stocks were hitting new highs this week along with many tech stocks. AVGO, MCHP, SYNA and SLAB announced better outlooks for the coming quarter. We like the chart of SLAB - here is the chart (check the MACD and RSI):
Right now the trend is your friend and the don't fight the Fed. We will look to go long the financial stocks this week. Keep and eye on the commodity stocks.
We are still heading into the holidays and a strong period of the year for the markets - we would expect some consolidation - but DOW 18K is imminent and as is SP500 hitting 2100. We are short AEM, IBB (hurting right now), YHOO (will likely close this tomorrow and go long BAC). Watching the stocks above and UTX.
Good luck trading.
Trucharts team
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