Trucharts.com Blog week ending 2/27/2015 - Markets and Hot Stocks, stocks and thoughts for the coming week
VIX dropping and the complacency is truly remarkable. Just check the chart here for VXX etf still heading down and we expect this to find a bottom and stabilize - the technicals are not pointing to any big move yet in volatility. We are heading into the sixth year of the bull market from the March 2009 bottom - earnings have been reasonable with some surprises and stocks which have beaten the estimates and raised forecasts have been rewarded their investors nicely. Check AVGO and CRM as examples.
VXX chart:
Oil dropped this week and gold stabilized around 1200 - we think gold will vacillate around 1175 - 1250 until there is an actual breakdown. We posted some good videos this week on the Fed's interest rate policy conundrum and how they have put themselves in a corner - and with the current ZIRP, we expect markets to trend higher after another consolidation phase here. A pull back to the 13 day SMA or even the 50d SMA would be a decent pullback. The leadership in stocks is narrowing and the breadth is narrowing also. Here is the chart for SPY (check the technicals weakening RSI and MACD):
Target support is between 208 - 205 (around 2080 and 2050 for S&P500):
We expect oil to head down and try to form a bottom before heading higher into the summer season. Gas prices in California are still high due to some refinery shutdowns, labor strikes. We expect oil prices to stay between 40 - 55.
Greece which got its loan stay/extension - we just call it noise and the Euro is getting crushed. We are in an all out currency war now and we really like the US dollar here - as there is no other currency that is currently safe. This will impact gold prices as the USD heads higher.
Ukraine is in total disaster mode, Venezuela is sinking - Russia us struggling and China is slowing down. Japan is mired in debt and all it can think of doing is cheapen its currency.
Stocks that have triggered short signals are in the airline sector - check the chart here for DAL, UAL and LUV:
Also take a look at the chart for CAT here below:
Stocks on our list for longs are:
Additional stocks we are watching are: LLY, ALTR.
Our long positions with options are in the following stocks: LLY, USO, ANV, DATA, Z, TWTR, ANGI
As we indicated in our blog 2 weeks ago - our call on ALTR was excellent - we locked our profits based on the buy signal generated from our Fast Trading Signal Strategy. Profit was 4.5% and ALTR has hit 37 since our buy call around 34.7.
Check these trading strategies on our stock charts page at: www.trucharts.com/stockview.aspx
Market Stats: (from finance.yahoo.com)
S&P 500: 2,104.50 -6.24 (-0.30%); Dow: 18,132.70 -81.72 (-0.45%); Nasdaq: 4963.53 -24.36 (-0.49%)
Advancers & Decliners
|
|
NYSE
|
AMEX
|
NASDAQ
|
|
Advancing Issues
|
1,614
(50%)
|
228
(57%)
|
1,034
(37%)
|
|
Declining Issues
|
1,530
(47%)
|
157
(39%)
|
1,676
(60%)
|
|
Unchanged Issues
|
93
(3%)
|
18
(4%)
|
91
(3%)
|
|
Total Issues
|
3,237
|
403
|
2,801
|
|
New Highs
|
99
|
6
|
105
|
|
New Lows
|
30
|
6
|
35
|
|
Up Volume
|
1,587,571,140
(45%)
|
87,795,645
(71%)
|
737,990,334
(39%)
|
|
Down Volume
|
1,903,862,936
(54%)
|
34,160,800
(28%)
|
1,151,918,788
(60%)
|
|
Unchanged Volume
|
60,957,743
(2%)
|
999,147
(1%)
|
24,153,883
(1%)
|
|
Total Volume
|
3,552,391,8191
|
122,955,5921
|
1,914,063,0051
|
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Twitter handle: @trucharts; https://www.twitter.com/trucharts
Good luck trading - please check our page - Why Trucharts.com at: http://truchartscom.blogspot.com/p/why-is-trucharts.html
B Bhatia
Founder/CEO
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