Friday, August 19, 2011

Mighty Mo for income

Complete Article & Graphs

Income investors keep looking for stable prices and steady income and look for Altria Group (MO) to give them both.  The stock is beginning to recover from its recent dip so income investors might put it on their watch lists but growth investors should look elsewhere.

Barchart technical indicators:
  • Barchart hold/neutral based on recent price recovery
  • Price just crossed its 20 day moving average
  • 5 new highs and up 6.73% in the last week
  • Relative Strength Index 51.09% and rising
  • Barchart computes a support level at 25.61
  • Recently traded at 26.00 which is slightly below its 50 day moving average of 26.41
    Summary:  Only income investors should look to acquire Altria Group (MO).  The generous dividend looks very secure and the large stock buy back should increase its P/E ratio.  Writing covered calls could raise your income but since price growth is limited cover calls will only raise your income marginally.  As always I advice younger and more aggressive investors to  look for stocks with double digit projects for growth of sales and income and this stock is not it.

    Jim Van Meerten is a Marketocracy Master



    Barchart Morning Call 8/19


    Barchart Morning Call
    Overnight Developments
    • Global stocks this morning are sharply lower on carry-over weakness from yesterday's sharp sell-off in the US stock market when the S&P 500 fell by 4.46%. The Euro Stoxx 50 this morning is down -2.73% and Sep S&Ps are down 21.30 points (-1.86%). The stock markets today are falling on the same factors as yesterday, i.e., weakening global economic growth, the European debt crisis, and concern about the European banking system. The Euro Stoxx 600 Bank index is down 2.3% at a 2-1/2 year low but is at least showing a smaller loss than this morning's -3.07% loss in the European broad market. U.S. bank stocks are generally lower this morning in European trading with Bank of America down 3.7% and JP Morgan Chase down 1%. Citigroup yesterday cut its U.S. GDP forecasts to +1.6% from +1.7% for 2011 and to +2.1% from +2.7% for 2012. Gold rose to a record high of $1,860 per ounce as investors continue to buy the metal as a safe-haven from stocks and currencies. Asian stocks today closed sharply lower across the board: Japan -2.51%, Hong Kong -3.08%, China -0.94%, Taiwan -3.57%, Australia -3.51%, Singapore -3.23%, South Korea -6.43%, and Bombay -1.99%.
    Overnight U.S. Stock News
    • September S&Ps this morning are trading down 21/30 points at 1122.20 as the market continues to fret about weaker economic growth, lower corporate profits, and the European debt crisis. The US stock market yesterday plunged throughout the day and finished sharply lower on growing signs the economy is slowing and on weakness in bank stocks on speculation that European banks lack sufficient capital: Dow Jones -3.68%, S&P 500 -4.46%, Nasdaq Composite -5.22%. The Nasdaq fell to a 1-week low. Bearish factors included (1) carry-over weakness from a decline in European stocks over concerns of European banks after he WSJ reported that U.S. regulators are stepping up scrutiny of local operations for Europe's largest banks on concern that the sovereign debt crisis may lead to funding problems, (2) the larger-than-expected increase in weekly initial unemployment claims (+9,000 to 408,000 versus expectations of +5,000 to 400,000), (3) the unexpected decline in Jul existing home sales which fell to their lowest level in 8 months (-3.5% to 4.67 million versus expectations of +2.7% to 4.90 million), and (4) the larger-than-expected drop in the Aug Philadelphia Fed manufacturing index which contracted at its slowest pace in 2 years (-33.9 to -30.7 versus expectations of -1.2 to 2.0).
    • Bullish factors included (1) the larger-than-expected increase in Jul leading indicators (+0.5% m/m versus expectations of +0.2%), (2) comments from New York Fed President Dudley who said that growth during the second half of 2011 will be "significantly firmer" than in the first 6 months and that he sees the risk of recession as "quite low," and (3) the fall in the 10-year T-note yield to a record low of 1.973%.
    Today's Market Focus
    • September 10-year T-notes this morning are down 1 tick, failing to rally as yet on today's 1.9% sell-off in Sep S&Ps. T-note prices yesterday rallied to all-time highs and the yield on the 10-year T-note fell below 2% for the first time as U.S. economic growth weakened along with strong safe-haven demand from a plunge in global equities and concerns over the funding of European banks: TYU11 +13.5, FVU11 +1.0, EDZ11 -4.0. The 10-year T-note yield fell to a record low of 1.973%. Bullish factors included (1) an increase in the safe-haven demand for Treasuries after stocks plunged along with concerns over European banks after the WSJ reported that U.S. regulators are stepping up scrutiny of local operations for Europe's largest banks on concern that the sovereign debt crisis may lead to funding problems, (2) the larger-than-expected increase in weekly initial unemployment claims (+9,000 to 408,000 versus expectations of +5,000 to 400,000), (3) the unexpected decline in Jul existing home sales which fell to their lowest level in 8 months (-3.5% to 4.67 million versus expectations of +2.7% to 4.90 million), and (4) the larger-than-expected drop in the Aug Philadelphia Fed manufacturing index which contracted at its slowest pace in 2 years (-33.9 to -30.7 versus expectations of -1.2 to 2.0). Bearish factors included (1) the larger-than-expected increase in Jul CPI (+0.5% m/m and +3.6% y/y versus expectations of +0.2% m/m and +3.3% y/y) and (2) the larger-than-expected increase in Jul leading indicators (+0.5% m/m versus expectations of +0.2%).
    • The dollar index this morning is little changed with the dollar/yen down -0.07 yen and the euro/dollar down 0.06 cents. The dollar index yesterday moved higher on increased safe-haven demand after global stock markets plunged along with speculation European banks lack sufficient capital: Dollar Index +0.570, USDJPY -0.028, EURUSD -0.0093. Bullish factors included (1) a sell-off in global equity markets, which increased the safe-haven demand for the dollar, (2) concerns over the European banking sector which led to a flight-to-safety into the dollar after the WSJ reported that U.S. regulators are stepping up scrutiny of local operations for Europe's largest banks on concern that the sovereign debt crisis may lead to funding problems, and (3) the larger-than expected increase in Jul CPI, which may keep the Fed from providing further monetary stimulus. Bearish factors included (1) weak US economic data that is dollar negative as Jul existing home sales unexpectedly fell to an 8-month low and the Aug Philadelphia Fed index unexpectedly contracted at its slowest pace in 2-years and (2) comments from New York Fed President Dudley who said the FOMC has "plenty of ammunition left" to combat another downturn in the economy.
    • Sep crude oil prices this morning are sharply lower by $2.53 (-3.07%) a barrel and Sep gasoline is down 1.69 cents (-0.61%) per gallon. The energy complex continues to move lower in sympathy with stocks and a lack of confidence in the economic outlook and fuel demand. Sep crude oil and gasoline prices yesterday tumbled as the dollar strengthened, US economic data weakened and Morgan Stanley and Deutsche Bank cut their forecasts for global economic growth: CLU11 -$5.25, RBU11 -8.71. Bearish factors included (1) dollar strength, which reduces investment demand in commodities, (2) weak US economic data after Jul existing home sales unexpectedly fell to an 8-month low, the Aug Philadelphia Fed index unexpectedly contracted at its slowest pace in 2-years and weekly initial U.S. unemployment claims rose more than expected, and (3) the action by Morgan Stanley to cut its 2011 global growth forecast to 3.9% from 4.2% and the cuts by Deutsche Bank to its 2011 and 2012 China growth forecasts. Bullish factors include (1) the larger-than-expected increase in Jun leading indicators and (2) comments from New York Fed President Dudley who said that growth during the second half of 2011 will be "significantly firmer" than in the first 6 months and that he sees the risk of recession as "quite low."
    Today's U.S. Earnings Reports Earnings reports (confirmed releases, sorted by mkt cap): TLVT-Telvent GIT SA (BEST earnings consensus $0.43), ANN-ANN Inc. (0.45), YGE-Yingli Green Energy Holding Co. (0.27), HIBB-Hibbett Sports (0.19), CATO-Cato Corp. (0.19).
    Global Financial Calendar
    Friday 8/19/11
    United States
    0830 ET New York Fed President William Dudley speaks about regional economic conditions in Lyndhurst, NJ.
    1345 ET Cleveland Fed President Sandra Pianalto speaks on ?The Evolving Financial Services Industry and the Outlook for U.S. Economic Growth? at the Community Bankers Association of Ohio Annual Convention.
    Japan
    0030 ET Jun Japan all industry activity index expected +2.2% m/m, May +2.0% m/m.
    Germany
    0200 ET Jul German producer prices expected +0.1% m/m and +5.3% y/y, Jun +0.1% m/m and +5.6% y/y.
    United Kingdom
    0430 ET Jul UK public sector net borrowing expected 0.2 billion pounds, Jun 12.0 billion pounds.
    Canada
    0700 ET Jul Canada CPI expected +0.2% m/m and +2.8% y/y, Jun -0.7% m/m and +3.1% y/y.
    0700 ET Jul Bank of Canada core CPI expected +0,2% m/m and +1.6% y/y, Jun -0.6% m/m and +1.3% y/y.

    Barchart.com provides Financial Quotes, Charts and Technical Analysis for Stock and Commodity Traders.

    New Gold - NGD - Barchart Chart of the Day


    Barchart.coms Chart of the Day - New Gold (NGD)
    Related Stocks
    NGD - New Gold Inc.
    Sym Last Chg Pct
    NGD 12.35 +0.16 +1.31%
    The "Chart of the Day" is New Gold (NGD), which was the only stock on Thursday to show up on Barchart's "All Time High" list. New Gold on Thursday rallied by 1.31% and posted a new all-time high of $12.60 with help from the new all-time high in gold prices. TrendSpotter has been Long on New Gold since Aug 10 at $11.71. In recent news on the stock, New Gold on Aug 3 reported Q2 adjusted EPS of 12 cents, which was slightly below the consensus of 13 cents. New Gold, with a market cap of $5.4 billion, is a gold exploration and mining company with its main location near Kamloops, British Columbia.

    ngd_700
    How we found the Chart of the Day:
    We found the "Chart of the Day" by scanning the Barchart "All Time High" list. In order to get to that list, we first clicked on the Stocks menu item on the Barchart home page, then on the "All Time Highs" menu item on the left menu bar. We then sorted the list by percentage gainers by clicking on the "Percent" column title. A stock that has posted a new All-Time high is typically showing strong upside momentum.
    Barchart's Opinion trading systems are all a "Buy" and Barchart's daily TrendSpotter trading system is a "Buy." 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. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.
    • TrendSpotter: Buy
    • Short-Term Indicators: 100% Buy
    • Medium-Term Indicators: 100% Buy
    • Long-Term Indicators: 100% Sell
    • Overall Average 100% Buy


    Barchart links for further information:

    Quotes and Charts
    Quote
    Detailed Quote
    Chart

    Technical Analysis
    Technicals Summary
    Trader's Cheat Sheet™

    Barchart Opinions
    Barchart Opinion
    Barchart Snapshot
    Trading Strategies

    Company Info
    Company Profile
    Key Statistics
    Ratios
    Income Statement-Quarterly
    Income Statement-Annual
    Balance Sheet-Current
    Balance Sheet-Annual


    Chart of the Day Archive
    View Past Chart of the Day Reports

    Thursday, August 18, 2011

    RTI Biologics has great prospects

    ARTICLE AND GRAPHS

    While screening on Barchart for small cap stocks having great price momentum I came across RTI Biologiics (RTIX) an undiscovered stock that is beginning to be put on analysts' watch lists.  The bio-medical sector is starting to move and the product line of this stock is wanted and necessary.  Just look at the 11 new highs and 14.24% price appreciation this stock received even in a soft market.


    Chart provided with permission of Barchart

    Barchart technical indicators:

    • 96% Barchart technical buy signals
    • Trend Spotter buy signal
    • Above its 20, 50 and 100 day moving averages
    • 11 new highs and up 14.24% in the last month
    • Relative Strength Index 60.27% and rising
    • Barchart computes a support level at 3.24
    • Traded recently at 3.43 which is above its 50 day moving average of 3.05

      Summary:  RTI Biologics (RTIX) is in that sweet spot I like for speculative growth stocks.  It has press and is being followed by major stock information sites like Value Line and Motley Fool and has drawn the attention of Wall Street analyst but as yet has not been added to any of their model portfolios.  I couldn't pass up these aggressive double digit earnings projects and have added it to both my own account and the accounts of my managed money portfolios.

      I think the cultured bone and tissue industry will be a big medical growth area and this company has proven products.   Because of its low price and high P/E ration this stock should be acquired only for speculative portfolios but deserves a place on the watch lists of all growth oriented investors.

      Jim Van Meerten is a Marketocracy Master

      Barchart Morning Call 8/18


      Barchart Morning Call
      Overnight Developments
      • Global stocks are weaker with the European Euro Stoxx 50 down -2.20% and Sep S&Ps down -20.30 points. The dollar and Treasuries are higher on increased safe-haven demand and the yield on the 10-year German bund tumbled to an 11-month low of 2.140% on European bank concerns. A sell-off in European bank stocks is leading the markets lower after the WSJ reported that U.S. regulators are stepping up scrutiny of local operations for Europe's largest banks on concern that the sovereign debt crisis may lead to funding problems. Bank stocks are also under pressure after comments from Lars Frisell, chief economist at Sweden's financial regulator, who said Swedish banks must do more to prepare for deterioration in Europe's debt crisis that could freeze interbank markets and cut off funding as "it won't take much for the interbank market to collapse." In an interview with the Austrian newspaper WirtschaftsBlatt, ECB Council member Nowotny said he has "Japanese fears" of the 1990's that the economy will enter a "long-term period of limited economic growth combined with low inflation." U.K. government bonds rallied and pushed the yield on the 10-year Gilt to an all-time low of 2.353% after Jul U.K. retail sales with auto fuel rose +0.2% m/m and was unchanged y/y, weaker than expectations of +0.3% m/m and +0.3% y/y.
      • The Asian stock markets today closed lower with Japan down -1.25%, China -1.79%, Australia -1.22%, South Korea -2.10%, India -2.20%. Chinese stocks closed lower after brokerages cut their economic growth estimates for Chinese growth due to the effects of weaker growth in the U.S. and Europe. Deutsche Bank lowered its 2011 China GDP forecast to 8.9% from 9.1% and cut its 2012 GDP estimate to 8.3% from 8.6% and Morgan Stanley cut its 2012 China economic growth forecast to 8.7% from 9.0%. Japanese stocks fell after Jul Japan exports fell -3.3% y/y, weaker than expectations of -2.6% y/y as a stronger yen and a slow down in the global economy helped to curtail demand for Japanese exports. The yen held steady near its post WWII high after Japanese Finance Minister Noda said he's ready to take "bold" action against excessive yen moves and as a top currency official at the finance ministry met with a counterpart at the BOJ, a conference that may be aimed at showing markets that Japan's policy makers are ready to cooperate to stem gains in the yen.
      Overnight U.S. Stock News
      • September S&Ps this morning are trading down sharply by -20.30 points. The US stock market yesterday erased an early advance and settled mixed after US Jul producer prices rose more than expected and after a plunge in Dell led a decline in technology stocks: Dow Jones +0.04%, S&P 500 +0.09%, Nasdaq Composite -0.47%. The S&P 500 and the Dow posted 1-1/2 week highs. Bearish factors included (1) carry-over weakness from a decline in European stocks on concerns the European sovereign-debt crisis may worsen after German Chancellor Merkel and French President Sarkozy rejected an expansion of the 440 billion-euro European rescue fund and rebuffed calls for joint euro borrowing, (2) continued weakness in the US housing market that may continue to be a drag on the economy after the weekly MBA mortgage purchase sub-index fell -9.1% w/w to its lowest level in 13 months, (3) the larger-than-expected gain in Jul core PPI which posted its biggest annual increase in 2 years and may keep the Fed from providing additional stimulus (+0.4% m/m and +2.5% y/y versus expectations of +0.2% m/m and +2.3% y/y), (4) comments from Dallas Fed President Fisher who said Washington's "fiscal misfeasance" restrains the U.S. economy and he also warned against the view that there is a "Bernanke put" for the stock market and that the Fed shouldn't ease monetary policy whenever there is a big drop in U.S. stock prices, and (5) weakness in technology stocks when Dell tumbled after it forecast weaker sales growth.
      • Bullish factors included (1) strength in raw-material and energy producers after a fall in the dollar index to a 3-week low prompted a broad-based commodity rally and (2) comments from St. Louis Fed President Bullard who said "the most likely outcome for the U.S. economy is that it will continue to grow at a moderate pace through the second half of the year."
      • JPMorgan Chase (JPM) fell 1% in pre-market trading as it follows European bank stocks lower on concern the Euopean sovereign debt crisis may lead to funding problems.
      • NetApp (NTAP) slumped 14% in European trading after the company late yesterday reported Q1 earnings excluding some items of 55 cents a share, below analysts' estimates of 56 cents.
      Today's Market Focus
      • September 10-year T-notes this morning are trading up +12 ticks on a flight-to-safety as global equity markets tumble. T-note prices yesterday traded lower early after Jul producer prices rose more than expected but they erased their losses and moved higher after the stock market relinquished an early rally: TYU11 +9, FVU11 +2.5, EDZ11 unchanged. Bullish factors included (1) an increase in the safe-haven demand for Treasuries after stocks erased an early rally and moved lower and (2) comments from Philadelphia Fed President Plosser that boosted the flight-to-safety demand for Treasuries when he said there is no "magic panacea" to cure the slowdown in the U.S. economy. Bearish factors included (1) comments from St. Louis Fed President Bullard who said that the Fed's pledge to keep interest rates near zero doesn't signal a third stimulus program, (2) the larger-than-expected increase in Jul PPI (+0.2% m/m and +7.2% y/y versus expectations of +0.1% m/m and +7.0% y/y), (3) the larger-than-expected gain in Jul core PPI which posted its biggest annual increase in 2 years (+0.4% m/m and +2.5% y/y versus expectations of +0.2% m/m and +2.3% y/y), and (4) comments from Philadelphia Fed President Plosser who said he objected to the Fed's Aug 9 post-FOMC statement that was "excessively negative" in its description of the U.S. economy and that the Fed will probably need to raise interest rates before its Aug 9 pledge to keep rates at a record low until mid-2013.
      • The dollar index this morning is higher with the dollar/yen -0.01 yen and the euro/dollar -0.52 cents. The dollar index yesterday slid to a 3-week low and closed lower as commodity currencies rallied against the dollar and the British pound surged to a 3-1/4 month high against the dollar after the minutes of the BOE's Aug 4 policy meeting showed policy makers refrained from pushing for additional stimulus: Dollar Index -0.336, USDJPY -0.193, EURUSD -0.00186. Bearish factors included (1) a rally in most commodity prices, which boosted the demand for commodity currencies such as the Canadian and Australian dollar at the expense of the US dollar and (2) strength in the British pound against the dollar after the minutes of the Aug 4 BOE policy meeting showed that policy makers were not convinced that the argument for increasing the BOE's bond purchase program "was not yet strong enough." Bullish factors included (1) the larger-than-expected increase in the Jul US core PPI which rose to a 2-1/2 year high of +2.5% y/y and may keep the Fed from implementing additional stimulus measures and (2) comments from St. Louis Fed President Bullard who said that the Fed's pledge to keep interest rates near zero doesn't signal a third stimulus program.
      • Sep crude oil prices this morning are down -$1.47 a barrel and Sep gasoline is -2.03 cents per gallon. Sep crude oil and gasoline prices yesterday settled higher as the dollar weakened but they retreated from their best levels after crude inventories unexpectedly rose: CLU11 +$0.93, RBU11 +1.65. Both Sep crude and Sep gasoline posted 1-1/2 week highs. Bullish factors included (1) the slide in the dollar index to a 3-week low, which boosts investment demand in commodities, and (2) the larger-than-expected decline in weekly gasoline inventories which tumbled to a 2-1/2 month low (-3.51 million bbl to 210.1 million versus expectations of -1.38 million bbl). Bearish factors included (1) the unexpected increase in weekly crude oil inventories (+4.23 million bbl versus expectations of a -250,000 bbl decline) and (2) the larger-than-expected gain in weekly distillate stockpiles which rose to a 5-month high (+2.45 million bbl to 154 million versus expectations of +550,000 bbl).
      Today's U.S. Earnings Reports Earnings reports (confirmed releases, sorted by mkt cap): HPQ-Hewlett-Packard (BEST earnings consensus $1.09), CRM-Salesforce.com (0.29), INTU-Intuit (0.00), GPS-The Gap (0.34), SJM-JM Smucker (1.09), ROST-Ross Stores (1.27), DLTR-Dollar Tree (0.75), MRVL-Marvell Technology Group Ltd. (0.37), ADSK-Autodesk (0.41), SHLD-Sears Holdings (-0.46), NDSN-Nordson (0.89), GME-Gamestop (0.21), FL-Foot Locker (0.12), TECD-Tech Data (0.95).
      Global Financial Calendar
      Thursday 8/18/11
      United States
      0830 ET Weekly initial unemployment claims expected +5,000 to 400,000, previous -7,000 to 395,000. Weekly continuing claims expected +12,000 to 3.700 million, previous -50,000 to 3.688 million.
      0830 ET Jul CPI expected +0.2% m/m and +3.3% y/y, Jun -0.2% m/m and +3.6% y/y. Jul CPI ex food & energy expected +0.2% m/m and +1.7% y/y, Jun +0.3% m/m and +1.6% y/y.
      0835 ET New York Fed President William Dudley speak son he regional economy in Newark, NJ.
      1000 ET Jul leading indicators expected +0.2%, Jun +0.3%.
      1000 ET Aug Philadelphia Fed manufacturing index expected -1.2 to 2.0, Jul +0.9 to 3.2.
      1000 ET Jul existing home sales expected +2.7% to 4.90 million, Jun -0.8% to 4.77 million.
      1100 ET Treasury announces amounts of 2-year T-notes (previous $35 billion), 5-year T-notes (previous $35 billion) and 7-year T-notes (previous $29 billion) to be auctioned Aug 23-25.
      1300 ET Treasury auctions $12 billion in 5-year TIPS.
      1630 ET Weekly money supply report and Fed balance sheet.
      Japan
      0100 ET Revised Jun Japan coincident index CI, previous 108.6. Revised Jun leading index CI, previous 103.2.
      0130 ET Jul Japan nationwide department store sales, Jun +0.3% y/y.
      United Kingdom
      0430 ET Jul UK retail sales ex auto fuel expected +0.4% m/m and +0.1% y/y, Jun +0.8% m/m and +0.2% y/y.
      0430 ET Jul UK retail sales with auto fuel expected +0.3% m/m and +0.3% y/y, Jun +0.7% m/m and +0.4% y/y.
      Euro-Zone
      0500 ET Jun Euro-Zone construction output, May -1.1% m/m and -1.9% y/y.
      Canada
      0830 ET Jul Canada leading indicators, Jun +0.2%.
      0830 ET Jun Canada wholesale sales, May +1.9% m/m.

      Barchart.com provides Financial Quotes, Charts and Technical Analysis for Stock and Commodity Traders.

      Southern Company - SO - Barchart Chart of the Day


      Barchart.coms Chart of the Day - Southern Company (SO)
      Related Stocks
      SO - Southern Company
      Sym Last Chg Pct
      SO 40.61 +0.36 +0.89%
      The "Chart of the Day" is Southern Company (SO), which showed up on Wednesday's list of stocks that had a new "Buy" signal from the Barchart "TrendSpotter" trading system and also on Barchart's "All Time High" list. Southern Company on Wednesday rallied by 0.89% and posted a new all-time high of $40.85. In recent news on the stock, Southern Company on July 27 reported Q2 EPS of 71 cents, well above the consensus of 64 cents. Macquarie on Aug 11 upgraded Southern to Outperform from Neutral and raised the target to $43 based on dividend yield and growth. Southern Company, with a market cap of $34 billion, is a large power company based in Atlanta.

      so_700_01
      How we found the Chart of the Day:
      We found the "Chart of the Day" by scanning the Barchart "Trading Signals" page. That page provides a summary of changes in the Barchart signals. We then clicked on the TrendSpotter "Buy" category to obtain a list of all the stocks for which the Barchart TrendSpotter trading system has just turned to a buy. We then clicked on the "Today's Opinion" column header in order to sort the list with the strongest stocks on top. Further information is available at Barchart Signals Guide help page and at TrendSpotter help page.
      Barchart's Opinion trading systems are mostly a "Buy" and Barchart's daily TrendSpotter trading system is a "Buy." 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. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.
      • TrendSpotter: Buy
      • Short-Term Indicators: 100% Buy
      • Medium-Term Indicators: 100% Buy
      • Long-Term Indicators: 100% Sell
      • Overall Average 96% Buy


      Barchart links for further information:

      Quotes and Charts
      Quote
      Detailed Quote
      Chart

      Technical Analysis
      Technicals Summary
      Trader's Cheat Sheet™

      Barchart Opinions
      Barchart Opinion
      Barchart Snapshot
      Trading Strategies

      Company Info
      Company Profile
      Key Statistics
      Ratios
      Income Statement-Quarterly
      Income Statement-Annual
      Balance Sheet-Current
      Balance Sheet-Annual


      Chart of the Day Archive
      View Past Chart of the Day Reports

      Wednesday, August 17, 2011

      Get ready to buy Ford

      Complete Article and Graphs
      There are times when you just can't ignore a bargain and right now Ford (F) is getting to be more of a bargain as each hour passes.  Don't just buy it, have a plan as to the proper time to buy it.  Let's look at the numbers and see when you should press the buy button.  First look at the chart of the price momentum:

      The stock is still going down so don't buy just yet.


      Barchart technical indicators:

      • When a great stock has nothing but sell signals that is usually a good time to have a plan to purchase at a bargain
      • Barchart 100% overall technical sell signal 
      • Trend Spotter sell signal
      • Below its 20, 50 and 100 day moving averages
      • 42% off its 52 week high
      • 14 new lows and off 23.77% in just the last month
      • Relative Strength Index is 23.77% and still falling
      • Barchart calculates a support level at 9.89
      • Closed Friday at 10.89 which is below its 50 day moving average of 13.26

        Summary: This is a global stock that recently formed a sales agreement with the Russian based Solles group that should assure new sales in Eastern Europe.  The company looks for increased sales and earnings and if the stock return to normal P/E ratios long term investors could see a 15% - 17% total annual return over the next 5 years.




        Charts and technical data provided by Barchart


        Jim Van Meerten is a Marketocracy Master





        Cisco - Tech has never been cheaper

        ARTICLE and GRAPHS



        Barchart technical indicators:

        • The stock closed yesterday at 13.94 which is far below its high of 27.74 back in April of 2010
        • The 88% Barchart overall technical sell signal can be signal that the stock is becoming a bargain
        • Trend Spotter sell signal - another bargain signal
        • Below its 20, 50 and 100 day moving averages
        • In the past 12 months the stock had 44 new lows and has dropped 43.72% in price
        • Relative Strength Index 28.43% and still falling
        • Barchart calculates a support level at 13.48
        • Closed yesterday at 13.94 which is below its 50 day moving average of 15.56

          Summary:  I am not suggesting that you put Cisco (CSCO) on your watch list because its popular with both the professional and individual investors.  I pointing out that this is a time to buy a tech stock with projected increases in sales and earnings at a 41.84% discount from its 52 week high.  My plan would be to place a stop buy at its 20 day moving average around 15.50.  If the stock continues to go down move the buy stop down, if it trigger you know you added a bargain to your portfolio.


          Charts and data provided by Barchart

          Jim Van Meerten is a Marketocracy Master



          Bank of America: Buy the stock, Buy a lawsuit

          Complete article and graphs:

          I normally go with the flow but when it comes to the money center banks like Bank of America (BAC) I'm going to take a very contrarian view.  Money center banks are wildly popular with both the professional and individual investor but a look at the numbers show they do not deserve a thumbs up from anyone.



          Barchart technical indicators:

          • 100% Barchart technical sell signals
          • Trend Spotter sell signal
          • Below its 20, 50 and 100 day moving averages
          • 11 down days and off 28.97% in the last month
          • Relative Strength Index is 31.04%
          • Barchart computes a support level at 6.33
          • Closed yesterday at 7.60 which is far below its 50 day moving average of 10.27

            Summary: In the case of Bank of America (BAC) wishing won't make it so.  When the analysts' recommendations  are strongly positive but the stock's price action is very negative great caution should be exercised.  Do not follow the herd and buy in to all the Wall Street recommendations.  The fundamental projections have wide fluctuations in forecasts and are based on very unreliable numbers.  The AIG lawsuit will not be the last one.  If you buy BAC you are not buying into great management but are buying into who has the best spin doctors and lawyers.  Take a pass on this one and look for the companies that have stable and growing sales and earnings.

            Jim Van Meerten is a Marketocracy Master



            Netflix is still streaming, but at a high price

            Complete article and Graphs

            Netflix (NFLX) may be one of those stocks you'd like to acquire on the recent rebound.  In the last month the stock had 10 new lows and was 17.32% off its recent high.  This is a stock with double digit projections for increases in sales and earnings and that alone should put it on your watch lists.

            The recent hourly price action has been swift:



            Barchart technical indicators:

            • Barchart 56% overall technical sell signal is beginning to weaken
            • Trend Spotter sell signal is also weakening
            • The stock had 10 down days and was 17.32% off its recent high this last month
            • The Relative Strength Index is 38.85%
            • Recently the stock traded at 240.55 which is below its 50 day moving average of 265.69
            • Barchart computes a support level at 231.05 and the stock seems to be moving away from that point today

              Summary:  Although the projections for Netflix (NFLX) sales and earning increases are double digit the high P/E ratio means that you are buying growth at a pretty healthy premium.  If in the next few day the stock takes a dip you might want to acquire a few shares but I wouldn't take this a major purchase,  a price under 237.50 might be OK.

              Jim Van Meerten is a Marketocracy Master




              Intel - A bright spot in tech

              Complete article with graphs


              Intel (INTC) is one of the bright spots in the tech industry.  This year they have been adding new customers, and not only is the sales per customer increasing but more importantly the price on their units is increasing also.  They have not had to resort to the discounting some of the other companies have experienced in order to move products out the door.  The recent price drop I believe is temporary and now is the time to push the buy button.



              Barchart technical indicators:
              • The 33% Barchart technical sell indicator is weakening which may be a sign of a price turnaround
              • Trend Spotter sell signal is also weakening
              • The stock is trading below its 20, 50 and 100 day moving average but has recovered over 4.50% in the last 2 days
              • This last month the stock did experience 11down days and is 12.52% off its recent high
              • The Relative Strength Index is 41.82% but rising
              • The stock closed yesterday at 20.76 which is 4.23% below its 50 day moving average of 21.75
              • Barchart computes a support level at 19.68

                Summary:  I think this is a very opportune time to buy Intel (INTC).  If the sales and earnings projections are true, dividend rates maintain their percentage of earnings and the stock returns to a more normal P/E ratio investors could see a 28% - 32% annual total return over the next 5 years.

                Data and charts provided with permission from Barchart

                Jim Van Meerten is a Marketocracy Master

                Barchart Morning Call 8/17


                Barchart Morning Call
                Overnight Developments
                • Global stocks are mixed with the European Euro Stoxx 50 down -0.17% and Sep S&Ps up +4.80 points. European stocks weakened, the dollar index fell to a 2-week low and most commodities gained after German Chancellor Merkel and French President Sarkozy rejected an expansion of the 440 billion-euro European rescue fund and rebuffed calls for joint euro borrowing. European bank and exchange stocks led the market lower after Chancellor Merkel and President Sarkozy proposed a tax on financial transactions. Treasuries and bunds moved higher after credit-default swaps to insure European government debts rose, but Treasuries fell back after St. Louis Fed President Bullard said that the Fed's pledge to keep interest rates near zero doesn't signal a third stimulus program. The British pound weakened against the dollar after Jul UK jobless claims rose +37,100, larger than expectations of +20,000 and the biggest increase in 2 years. Limiting declines in European stocks was a decrease in price pressures after the Jul Euro-Zone core CPI rose +1.2% y/y, weaker than expectations of +1.6% y/y.
                • The Asian stock markets today closed mixed with Japan down -0.55%, China -0.40%, Australia +1.33%, South Korea +0.50%, India +0.66%. Asian stocks closed lower after European leaders failed to come up with concrete solutions to the region's debt crisis, which revived concerns the global economy may stagnate and curb the earnings of Asian exporters. Asian semiconductor stocks fell after Dell missed analysts' sales estimates and cut its revenue forecast. Chinese property developers and bank stocks moved lower after the China Business News Daily reported that PBOC adviser Li Daokui said China will not introduce additional stimulus measures if the economy weakens and will "basically" maintain its existing monetary policy direction.
                Overnight U.S. Stock News
                • September S&Ps this morning are trading up +4.80 points. The US stock market yesterday settled lower after weaker-than-expected Q2 Euro-Zone GDP raised global economic growth concerns: Dow Jones -0.67%, S&P 500 -0.97%, Nasdaq Composite -1.24%. Bearish factors included (1) carry-over weakness from a decline in European stocks on concerns over an economic slowdown after Q2 German GDP rose +0.1% q/q and +2.7% y/y, weaker than expectations of +0.5% q/q and +3.1% y/y and Q2 Euro-Zone GDP expanded +0.2% q/q and +1.7% y/y, weaker than expectations of +0.3% q/q and +1.8% y/y, (2) a slump in homebuilders after the larger-than-expected drop in Jul US building permits (-3.2% to 597,000 versus expectations of -1.9% to 605,000), (3) the unexpected increase in Jul US import prices that posted their biggest annual increase in nearly 3 years (+0.3% m/m and +14.0% y/y versus expectations of -0.1% m/m and +13.4% y/y), and (4) weakness in exchange operators on concern that a proposal by French President Sarkozy for France and Germany to implement a financial-transaction tax will curb trading volumes.
                • Bullish factors included (1) the action by Fitch Ratings to affirm its AAA credit rating for the US, (2) the larger-than-expected increase in Jul industrial production which posted its biggest gain this year (+0.9% versus expectations of +0.5%), and (3) the larger-than-expected gain in Jul capacity utilization which climbed to its best level in 2-3/4 years (+0.6 to 77.5% versus expectations of +0.3 to 77.0%).
                • Staples (SPLS) gained 4.4% in European trading after the company projected earnings per share for the year of $1.39 to $1.45, higher than analysts' estimates of $1.37.
                • Dell (DELL) sank 8.7% in European trading after the company late yesterday reported Q2 revenue of $15.7 billion, below analysts' estimates of $15.8 billion and after it cut its sales growth projections for this year to 1% to 5%, down from a previous range of 5% to 9%.
                Today's Market Focus
                • September 10-year T-notes this morning are trading down -2.5 ticks. T-note prices yesterday strengthened as European economic growth slowed and after Fitch Ratings affirmed the AAA credit rating of the US: TYU11 +16.5, FVU11 +7.2, EDZ11 +2.0. Bullish factors included (1) the weaker-than-expected Q2 German GDP (+0.1% q/q and +2.7% y/y versus expectations of +0.5% q/q and +3.1% y/y), which sent stocks lower and boosted the safe-haven demand for Treasuries, (2) the action by Fitch Ratings to affirm its AAA credit rating for the US, and (3) the larger-than-expected drop in Jul US building permits (-3.2% to 597,000 versus expectations of -1.9% to 605,000). Bearish factors included (1) the unexpected increase in Jul import prices that posted their biggest annual increase in nearly 3 years (+0.3% m/m and +14.0% y/y versus expectations of -0.1% m/m and +13.4% y/y), (2) the larger-than-expected increase in Jul industrial production which posted its biggest gain this year (+0.9% versus expectations of +0.5%), (3) the larger-than-expected gain in Jul capacity utilization which climbed to its best level in 2-3/4 years (+0.6 to 77.5% versus expectations of +0.3 to 77.0%), and (4) reduced safe-haven demand for Treasuries after French President Sarkozy said Germany and France are working on "ambitious" joint proposals to defend the euro, which reduced European sovereign-debt concerns.
                • The dollar index this morning is weaker and at a 2-week low with the dollar/yen -0.31 yen and the euro/dollar +0.60 cents. The dollar index yesterday settled higher after Fitch Ratings affirmed its AAA credit rating for the US and after the euro weakened when Germany's Q2 GDP was weaker than expected: Dollar Index +0.174, USDJPY -0.038, EURUSD -0.00367. Bullish factors included (1) the action by Fitch Ratings to affirm its AAA credit rating for the US, citing the role of the US in the global financial system along with its diverse economy, (2) the weaker-than-expected Q2 German and Euro-Zone GDP, which weakened the euro on concern that Euro-Zone nations will struggle to rein in their budget deficits as the economy slows, and (3) the stronger than expected Jul US industrial production and capacity utilization, which signals economic growth and is dollar supportive. Bearish factors included (1) euro supportive comments from French President Sarkozy who said he and German Chancellor Merkel share an "absolute determination" to defend the euro and (2) strength in the Chinese yuan which rose to 6.3820 against the dollar, the strongest level in 17-years on speculation China will tolerate the yuan's strength to contain inflation.
                • Sep crude oil prices this morning are up +$1.14 a barrel and Sep gasoline is +4.35 cents per gallon. Sep crude oil and gasoline prices yesterday moved lower after the dollar strengthened and after Q2 German GDP nearly stalled, which fueled concern the global economy and energy demand were slowing: CLU11 -$1.23, RBU11 -2.07. Bearish factors included (1) dollar strength, which diminishes investment demand in commodities, (2) the weaker-than expected Q2 German and Euro-Zone GDP, which signals weakened energy consumption and demand, and (3) the prediction from China's State Information Center that Q3 China GDP may slow to 9.2% y/y from 9.5% y/y in Q2, which would lead to a decrease in Chinese energy demand. Bullish factors included (1) the stronger-than-expected Jul US industrial production and (2) the outlook for weekly DOE crude inventories to fall to a 5-month low on Wednesday. Expectations for the weekly DOE inventories are for crude oil to fall -250,000 bbl, gasoline supplies to drop -1.38 million bbl, distillate stockpiles to increase +550,000 bbl and the refinery capacity rate to rise +0.3 to 89.7%.
                Today's U.S. Earnings Reports Earnings reports (confirmed releases, sorted by mkt cap): TGT-Target (BEST earnings consensus $0.97), DE-Deere (1.67), NTAP-NetApp (0.56), LTD-Limited Brands (0.46), SPLS-Staples (0.19), SINA-Sina Corp. (0.18), NTES-Netease.com (0.80), ANF-Abercrombie & Fitch (0.29), PETM-PetSmart (0.51), SNPS-Synopsys (0.43), FLO-Flowers Foods (0.26), JDSU-JDS Uniphase (0.23), EV-Eaton Vance (0.50).
                Global Financial Calendar
                Wednesday 8/17/11
                United States
                0700 ET Weekly MBA mortgage applications, previous +21.7% with purchase mortgage sub-index -0.9% and refinancing mortgage sub-index +30.4%.
                0830 ET Jul PPI expected +0.1% m/m and +7.0% y/y, Jun -0.4% m/m and +7.0% y/y. Jul PPI ex food & energy expected +0.2% m/m and +2.3% y/y, Jun +0.3% m/m and +2.4% y/y.
                1320 ET Dallas Fed President Richard Fisher speaks at a community forum on Fed functions and monetary policy in Midland, TX.
                United Kingdom
                0430 ET Minutes of the Aug 3 and Aug 4 BOE monetary policy meeting.
                0430 ET Jul UK jobless claims change expected +20,000, Jun +24,500. Jul claimant count rate expected 4.7%, Jun 4.7%.
                0430 ET Jun UK avg weekly earnings expected +2.3% 3-mo/year-overyear, May +2.3% 3-mo/year-overyear.
                0430 ET Jun UK avg weekly earnings ex-bonus expected +2.3% 3-mo/year-over-year, May +2.1% 3-mo/year-over-year.
                0430 ET Jun UK ILO unemployment rate expected 7.7% 3-months, May 7.7% 3-months.
                Euro-Zone
                0500 ET Jul Euro-Zone CPI expected -0.6% m/m and +2.5% y/y, Jun unchanged m/m and +2.5% y/y.
                0500 ET Jul Euro-Zone core CPI expected +1.6% y/y, Jun +1.6% y/y.

                Barchart.com provides Financial Quotes, Charts and Technical Analysis for Stock and Commodity Traders.

                El Paso (EE) Barchart Chart of the Day


                Barchart.com's Chart of the Day - El Paso Electric (EE)
                Related Stocks
                EE - El Paso Electric Company
                Sym Last Chg Pct
                EE 34.99 +0.36 +1.04%
                The "Chart of the Day" is El Paso Electric (EE), which showed up on Tuesday's list of stocks that had a new "Buy" signal from the Barchart "TrendSpotter" trading system and also on Barchart's "All Time High" list. El Paso on Tuesday extended the 1-week rally and closed +1.04% after posting a new all-time high of $35.32. In recent news on the stock, Goldman Sachs on Aug 16 upgraded El Paso Electric to Conviction Buy from Buy due to dividend growth and stock buybacks. Deutsche Bank on Aug 9 upgraded El Paso to Buy from Hold, but Ticonderoga on Aug 4 downgraded El Paso to Neutral from Buy due to valuation concerns. El Paso on Aug 3 reported Q2 EPS of 78 cents, well above the consensus of 63 cents. El Paso Electric, with a market cap of $1.5 billion, sells electricity in west Texas and southern New Mexico.

                ee_700_01
                How we found the Chart of the Day:
                We found the "Chart of the Day" by scanning the Barchart "Trading Signals" page. That page provides a summary of changes in the Barchart signals. We then clicked on the TrendSpotter "Buy" category to obtain a list of all the stocks for which the Barchart TrendSpotter trading system has just turned to a buy. We then clicked on the "Today's Opinion" column header in order to sort the list with the strongest stocks on top. Further information is available at Barchart Signals Guide help page and at TrendSpotter help page.
                Barchart's Opinion trading systems are all a "Buy" and Barchart's daily TrendSpotter trading system is a "Buy." 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. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.
                • TrendSpotter: Buy
                • Short-Term Indicators: 100% Buy
                • Medium-Term Indicators: 100% Buy
                • Long-Term Indicators: 100% Sell
                • Overall Average 100% Buy


                Barchart links for further information:

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                Chart of the Day Archive
                View Past Chart of the Day Reports

                Tuesday, August 16, 2011

                Cree added

                This morning I added Cree (CREE) to the Barchart Van Meerten New High portfolio for positive price momentum,


                Barchart technical indicators:
                • Barchart short term buy signals
                • Trend spotter buy signal
                • Above its 20 and 50 day moving averages
                • 10 new highs and up 16.20% in the last month
                • Relative Strength Index 58.86% and rising
                • Barchart computes a support level at 34.81
                • Trades around 36.24 which is a bove its 50 day moving average of 33.52
                Jim Van Meerten is a Marketocracy Master


                China Security & Surveillance - CSR - buy signals

                This morning I added China Security and Surveillance Tech (CSR) to both the Barchart Van Meerten New High portfolio  and the Barchart Van Meerten Speculative portfolio for very positive price performance.


                Barchart technical indicators:
                • 96% Barchart technical buy signals
                • Trend Spotter buy signals
                • Above its 20, 50 and 100 day moving average
                • 14 new highs and up 12.83% in the last month
                • Relative strength Index 66.30% and rising
                • Barchart computes a support level at 5.82
                • Trades around 5.97 which is above its 50 day moving average of 5.36
                Jim Van Meerten is a Marketocracy Master


                Barchart Morning Call 8/16


                Barchart Morning Call
                Overnight Developments
                • Global stocks are mostly lower with the European Euro Stoxx 50 down -0.91% and Sep S&Ps down -14.60 points. The dollar and Treasuries rose and commodities weakened as European economic growth slowed more than expected in Q2 as the sovereign-debt crisis intensified. Q2 Euro-Zone GDP rose +0.2% q/q and +1.7% y/y, weaker than expectations of +0.3% q/q and +1.8% y/y, while Q2 German GDP rose +0.1% q/q and +2.7% y/y, weaker than expectations of +0.5% q/q and +3.1% y/y. The markets are awaiting the meeting today between German Chancellor Merkel and French President Sarkozy who try to come up with a lasting resolution to the European debt crisis. Jul UK CPI rose +0.1% m/m and +4.4% y/y, stronger than expectations of unchanged m/m and +4.3% y/y, which required BOE Governor King to write a letter to the Exchequer as inflation is more than 1% above the BOE's 2% target. The British pound weakened against the dollar after the letter from King to Chancellor of the Exchequer Osborne said "severe" market stress poses a risk to the U.K. economy that could push inflation too far below the 2% target.
                • The Asian stock markets today closed mostly lower with Japan up +0.23%, China -0.70%, Australia -0.83%, South Korea +5.14%, India -0.65%. Asian technology stocks gained on support from M&A activity after Google agreed to buy Motorola Mobility Holdings and after Goldman Sachs said Google's purchase of Motorola Mobility may be positive for Asian Android-phone makers as it helps reduce litigation risk. Chinese bank stocks gained after the Finance Ministry said local government debts were controllable, while exporters weakened after Germany reported that economic growth was slower-than-expected in Q2. The China Securities Journal reported that the State Information Center said Q3 China GDP may slow to 9.2% y/y from 9.5% y/y in Q2 as global economic growth moderates.
                Overnight U.S. Stock News
                • September S&Ps this morning are trading down -14,60 points. The US stock market yesterday pushed higher throughout the day on reduced European sovereign-debt concerns along with an increase in M&A activity: Dow Jones +1.90%, S&P 500 +2.18%, Nasdaq Composite +1.88%. The S&P 500, the Dow and the Nasdaq all rose to 1-week highs. Bullish factors included (1) carry-over strength from a rally in European equity markets as debt concerns eased after credit default swaps to insure the government debt of Euro-Zone countries declined along with speculation that that a key summit of French and German leaders on Tuesday will lead to a more lasting solution to the European debt crisis, (2) carry-over support from a rally in Japanese stocks after a stronger-than-expected Q2 Japan GDP signaled that Japan's economy was recovering from the March earthquake, and (3) increased M&A activity after Google agreed to buy Motorola's Mobility division for $12.5 billion, Time Warner agreed to buy Insight Communications for $3 billion and Transocean offered to buy Aker Drilling for 7.9 billion kroner ($1.4 billion).
                • Bearish factors included (1) the unexpected contraction in the Aug Empire manufacturing index for the third straight month (-11.5 to -7.7 versus expectations of +3.8 to 0.0) and (2) weakened foreign demand for US dollar assets after the Jun net long-term TIC flows rose by +$3.7 billion, weaker than expectations for an increase of +$30.2 billion.
                • Caterpillar (CAT) fell 1.8% in European trading after Germany's economic growth almost stalled in Q2.
                • Wal-Mart (WMT) rose 2.2% in pre-market trading after the world's largest retailer raised its annual earnings forecast to $4.41 to $4.51 a share from a previous estimate of $4.35 to $4.50.
                Today's Market Focus
                • September 10-year T-notes this morning are trading up +8 ticks. T-note prices yesterday moved lower as European debt concerns eased and as strength in the equity market reduced the safe-haven demand for Treasuries: TYU11 -10, FVU11 -4.7, EDZ11 +3.0. Bearish factors included (1) reduced safe-haven demand for Treasuries from the European debt crisis after credit-default swaps to insure the government debts of European countries fell along with speculation that a key summit of French and German leaders on Tuesday will lead to a more lasting solution to the European debt crisis and (2) reduced safe-haven demand for Treasuries as the stock market rallied. Bullish factors included (1) the unexpected contraction in the Aug Empire manufacturing index for the third straight month (-11.5 to -7.7 versus expectations of +3.8 to 0.0), (2) continued strong demand for Treasuries from China, the biggest foreign holder of US debt, after China increased its holdings of Treasuries for a third month in Jun by +$5.7 billion to $1.166 trillion, and (3) comments from Atlanta Fed President Lockhart who said the fed is "not out of bullets" and could purchase more Treasuries or alter its balance sheet if the US economy were to slow further.
                • The dollar index this morning is higher with the dollar/yen -0.10 yen and the euro/dollar -0.74 cents. The dollar index yesterday tumbled to a 2-week low after foreign demand for US dollar assets weakened and safe-haven demand for the dollar fell after the stock market rallied: Dollar Index -0.771, USDJPY +0.127, EURUSD +0.01975. Bearish factors included (1) weakened foreign demand for US dollar assets after the Jun net long-term TIC flows rose by +$3.7 billion, weaker than expectations of +$30.2 billion, (2) the unexpected contraction in the Aug Empire manufacturing index, which signals economic weakness that may prompt the Fed into additional stimulus measures, (3) strength in the euro which rallied to a 2-week high against the dollar on speculation that a key summit of French and German leaders on Tuesday will lead to a more lasting solution to the European debt crisis, and (4) reduced safe-haven demand for the dollar after the stock market rallied. Bullish factors included (1) the larger-than-expected purchase of European government bonds by the ECB last week in an attempt to stem the region's debt crisis when it purchased 22 billion euros of government bonds, larger than expectations of 15 billion euros, which signals increased quantitative easing by the ECB and is euro negative and (2) comments from Japanese Finance Minister Noda that weakened the yen as he raised the possibility of further Japanese currency intervention to stem the yen's gains when he said "I will continue to closely watch the markets and take bold action if it becomes necessary."
                • Sep crude oil prices this morning are down -$1.23 a barrel and Sep gasoline is -2.57 cents per gallon. Sep crude oil and gasoline prices yesterday finished higher after the dollar weakened and after Japanese economic growth slowed less than expected: CLU11 +$2.50, RBU11 +5.23. Sep crude and Sep gasoline posted 1-week highs. Bullish factors included (1) the slide in the dollar index to a 2-week low, which boosts investment demand in commodities, (2) the smaller-than-expected contraction in Q2 Japan GDP, which signals stronger than expected fuel consumption, and (3) the rally in stock prices which boosts confidence in the economic outlook and energy demand. Bearish factors included (1) the unexpected contraction in the Aug Empire manufacturing index for the third straight month, which signals reduced fuel demand and (2) fund liquidation of long crude positions after the CFTC reported that large speculators cut their long positions by 11% in the week ended Aug 9 to 142,938 contracts, the fewest long positions in 8-1/2 months.
                Today's U.S. Earnings Reports Earnings reports (confirmed releases, sorted by mkt cap): WMT-Wal-Mart Stores (BEST earnings consensus $1.08), HD-Home Depot (0.82), DELL-Dell (0.49), TJX-Tjx Cos. (0.89), ADI-Analog Devices (0.73), PRGO-Perrigo (0.99), TW-Towers Watson (1.03), DKS-Dick's Sporting Goods (0.50), JKHY-Jack Henry & Associates (0.40), SKS-Saks Inc. (-0.08), BOBE-Bob Evans Farms (0.51).
                Global Financial Calendar
                Tuesday 8/16/11
                United States
                0745 ET ICSC (Int?l Council of Shopping Centers) weekly retailer sales.
                0830 ET Jul import price index expected -0.1% m/m and +13.4% y/y, Jun -0.5% m/m and +13.6% y/y.
                0830 ET Jul housing starts expected -4.6% to 600,000, Jun +14.6% to 629,000. Jul building permits expected -1.9% to 605,000, Jun +1.3% to 617,000.
                0855 ET Redbook weekly retailer sales.
                0915 ET Jul industrial production expected +0.5%, Jun +0.2%. Jul capacity utilization expected +0.3 to 77.0%, Jun unchanged at 76.7%.
                1130 ET Weekly 4-week T-bill auction.
                Germany
                0200 ET Preliminary Q2 German GDP expected +0.5% q/q and +3.1% y/y, Q1 +1.5% q/q and +4.9% y/y
                United Kingdom
                0430 ET Jun UK DCLG house prices, May -1.6% y/y.
                0430 ET Jul UK CPI expected -0.1% m/m and +4.3% y/y, Jun -0.1% m/m and +4.2% y/y.
                0430 ET Jul UK core CPI expected +3.0% y/y, Jun +2.8% y/y.
                0430 ET Jul UK RPI expected -0.2% m/m and +5.0% y/y, Jun unchanged m/m and +5.0% y/y. Jul RPI ex mortgage interest payments expected +5.1% y/y, Jun +5.0% y/y.
                Euro-Zone
                0500 ET Preliminary Q2 Euro-Zone GDP expected +0.3% q/q and +1.8% y/y, Q1 +0.8% q/q and +2.5% y/y.
                Canada
                0830 ET Jun Canada manufacturing sales expected -0.2% m/m, May -0.8% m/m.

                Barchart.com provides Financial Quotes, Charts and Technical Analysis for Stock and Commodity Traders.

                Unilever - UL - Barchart Chhart of the Day


                Barchart.coms Chart of the Day - Unilever (UL)
                Related Stocks
                UL - Unilever Plc
                Sym Last Chg Pct
                UL 33.61 +0.71 +2.16%
                The "Chart of the Day" is Unilever (UL), which showed up on Monday's list of stocks that had a new "Buy" signal from the Barchart "TrendSpotter" trading system and also showed up on Barchart's "All Time High" list and the "Gap Up" list. Unilever on Monday gapped upward to an all-time high of $33.68 and closed the day up 2.16%. In recent news on the stock, the Daily Mail reported that Unilever pushed through a 5.1% price increase in Q2, passing through some of the sharp increases in commodity prices. The company has also trimmed expenses in response to a 15% increase in raw materials costs by freezing salaries and slashing travel budgets. Unilever on Aug 4 reported Q2 EPS of 77 euro cents and reported that underlying sales growth improved to 7.1% from 3.6% in the year-earlier quarter. Unilever, with a market cap of $94 billion, is a UK-based global producer of branded and packaged consumer goods, including food, detergents and personal care products.

                ul_700
                How we found the Chart of the Day:
                We found the "Chart of the Day" by scanning the Barchart "Trading Signals" page. That page provides a summary of changes in the Barchart signals. We then clicked on the TrendSpotter "Buy" category to obtain a list of all the stocks for which the Barchart TrendSpotter trading system has just turned to a buy. We then clicked on the "Today's Opinion" column header in order to sort the list with the strongest stocks on top. Further information is available at Barchart Signals Guide help page and at TrendSpotter help page.
                Barchart's Opinion trading systems are all a "Buy" and Barchart's daily TrendSpotter trading system is a "Buy." 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. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.
                • TrendSpotter: Buy
                • Short-Term Indicators: 100% Buy
                • Medium-Term Indicators: 100% Buy
                • Long-Term Indicators: 100% Sell
                • Overall Average 100% Buy


                Barchart links for further information:

                Quotes and Charts
                Quote
                Detailed Quote
                Chart

                Technical Analysis
                Technicals Summary
                Trader's Cheat Sheet™
                Barchart.coms Chart of the Day - Unilever (UL)
                Related Stocks
                UL - Unilever Plc
                Sym Last Chg Pct
                UL 33.61 +0.71 +2.16%
                The "Chart of the Day" is Unilever (UL), which showed up on Monday's list of stocks that had a new "Buy" signal from the Barchart "TrendSpotter" trading system and also showed up on Barchart's "All Time High" list and the "Gap Up" list. Unilever on Monday gapped upward to an all-time high of $33.68 and closed the day up 2.16%. In recent news on the stock, the Daily Mail reported that Unilever pushed through a 5.1% price increase in Q2, passing through some of the sharp increases in commodity prices. The company has also trimmed expenses in response to a 15% increase in raw materials costs by freezing salaries and slashing travel budgets. Unilever on Aug 4 reported Q2 EPS of 77 euro cents and reported that underlying sales growth improved to 7.1% from 3.6% in the year-earlier quarter. Unilever, with a market cap of $94 billion, is a UK-based global producer of branded and packaged consumer goods, including food, detergents and personal care products.

                ul_700
                How we found the Chart of the Day:
                We found the "Chart of the Day" by scanning the Barchart "Trading Signals" page. That page provides a summary of changes in the Barchart signals. We then clicked on the TrendSpotter "Buy" category to obtain a list of all the stocks for which the Barchart TrendSpotter trading system has just turned to a buy. We then clicked on the "Today's Opinion" column header in order to sort the list with the strongest stocks on top. Further information is available at Barchart Signals Guide help page and at TrendSpotter help page.
                Barchart's Opinion trading systems are all a "Buy" and Barchart's daily TrendSpotter trading system is a "Buy." 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. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.
                • TrendSpotter: Buy
                • Short-Term Indicators: 100% Buy
                • Medium-Term Indicators: 100% Buy
                • Long-Term Indicators: 100% Sell
                • Overall Average 100% Buy


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                Monday, August 15, 2011

                Barchart Morning Call 8/15


                Barchart Morning Call
                Overnight Developments
                • Global stocks are mostly higher with the European Euro Stoxx 50 down -0.03% and Sep S&Ps up +5.30 points. The dollar and Treasuries are weaker and commodities are mixed as European debt risk declined. Stock prices were supported as credit-default swaps to insure the government debts of Euro-Zone nations declined along with cheap stock valuations as the recent slump in equity prices left stocks near their lowest level relative to earnings in more than 2 years. Increased M&A activity is also a supportive factor for equity prices after Transocean, the world's largest offshore driller, offered to buy Aker Drilling for 7.9 billion kroner ($1.4 billion). The Swiss franc fell versus the dollar for a fourth day after the SonntagsZeitung newspaper said the Swiss government and its central bank are in "intense" talks over setting a target for their currency.
                • The Asian stock markets today closed higher with Japan up +1.37%, China +1.48%, Australia +2.64%, while South Korea and India were closed for holiday. Asian markets received a boost after the Japanese economy contracted less than estimated in Q2. Q2 Japan GDP contracted -0.3% q/q and -1.3% annualized, stronger than expectations of -0.6% q/q and -2.5% annualized as reconstruction work limits the slump from the March earthquake and tsunami, although the Japanese economy has now contracted for 3 consecutive quarters. China's Shanghai Stock Index increased by the most in a month as bank stocks rallied on speculation the government will introduce measures to boost economic growth after new lending declined and money supply growth slowed. In a televised interview in China, Li Daokui, one of the academic advisors to the PBOC, said China will not need to introduce another stimulus plan similar to the one in 2008 to boost its economy as the ongoing global economic turmoil will have limited impact on China.
                Overnight U.S. Stock News
                • September S&Ps this morning are trading up +5.30 points. The US stock market last Friday rallied for a second day as a decline in European credit-default swap prices eased concern over the European debt crisis while the largest increase in 4 months in US Jul retail sales tempered concern economic growth is slowing: Dow Jones +1.13%, S&P 500 +0.53%, Nasdaq Composite +0.61%. Bullish factors included (1) carry-over strength from a rally in European equity markets as debt concerns eased after credit default swaps to insure the government debt of Euro-Zone countries declined and (2) strength in retailers after the stronger-than-expected Jul US retail sales which posted its biggest increase in 4 months along with the upward revision to Jun (Jul +0.5% and +0.5% ex-autos versus expectations of +0.5% and +0.3% ex-autos and Jun revised up to +0.3% and +0.2% ex-autos versus the originally reported +0.1% and unchanged ex-autos).
                • Bearish factors included (1) the plunge in the Aug US University of Michigan consumer confidence which tumbled to its lowest level in 31 years (-8.8 to 54.9 versus expectations of -1.2 to 62.5) and (2) comments from New York Fed President Dudley who said policy makers gave a "sober assessment" of the US economy this past week and that he cut his forecast for economic growth.
                • Bank of America (BAC) rose 1.3% in pre-market trading after a Barron's article said the bank's shares may be poised to rise on growth at the bank's businesses other than its residential-mortgage division.
                Today's Market Focus
                • September 10-year T-notes this morning are trading down -5 ticks. T-note prices last Friday settled higher due to a plunge in the Aug US University of Michigan consumer confidence and dovish comments from New York Fed President Dudley: TYU11 +21, FVU11 +7, EDZ11 -2.5. Bullish factors included (1) the plunge in the Aug US University of Michigan consumer confidence which fell to its lowest level in 31 years (-8.8 to 54.9 versus expectations of -1.2 to 62.5) (2) comments from New York Fed President Dudley who said policy makers gave a "sober assessment" of the US economy this week and that he cut his forecast for economic growth, and (3) a post-refunding rally as dealers lifted short hedges put on over the past week for the Treasury's $72 billion Aug refunding auctions of T-notes and T-bonds. Bearish factors included (1) the stronger-than-expected Jul US retail sales which posted its biggest increase in 4 months along with the upward revision to Jun (Jul +0.5% and +0.5% ex-autos versus expectations of +0.5% and +0.3% ex-autos and Jun revised up to +0.3% and +0.2% ex-autos versus the originally reported +0.1% and unchanged ex-autos), (2) comments from Minneapolis Fed President Kocherlakota who said he sees no need for "more accommodative" policy, and (3) reduced safe-haven demand for Treasuries as the stock market rallied.
                • The dollar index this morning is weaker with the dollar/yen +0.08 yen and the euro/dollar +0.45 cents. The dollar index last Friday settled little changed as stock market strength and a plunge in US consumer confidence offset stagnation in Q2 French economic growth and an unexpected decline in Jun Euro-Zone industrial production: Dollar Index -0.070, USDJPY -0.128, EURUSD +0.00061. Bearish factors included (1) reduced safe-haven demand for the dollar after the stock market rallied, and (2) the plunge in the Aug US University of Michigan consumer confidence to its lowest level in 31-years. Bullish factors included (1) the stronger-than-expected Jul US retail sales, and (2) weaker than-expected European economic data on Q2 French GDP and Jun Euro-Zone industrial production, which are euro negative.
                • Sep crude oil prices this morning are down -52 cents a barrel and Sep gasoline is +0.36 of a cent per gallon. Sep crude oil and gasoline prices last Friday settled lower after a plunge in Aug US consumer confidence along with economic weakness in Europe offset strong Jul US retail sales: CLU11 -$0.34, RBU11 -0.51. Sep gasoline posted a 1-week high. Bullish factors included (1) the weaker dollar, which boosts investment demand in commodities, (2) the larger-than expected rise in Jul US retail sales which posted its biggest increase in 4-months and reduces concern that US consumer spending and fuel demand may fall, and (3) the rally in stock prices which boosts confidence in the economic outlook and energy demand. Bearish factors included (1) the plunge in the Aug US University of Michigan consumer confidence to its lowest level in 31-years, which may signal slower consumer spending and weakened fuel demand and (2) the stagnation in Q2 French GDP along with the unexpected decline in Jun Euro-Zone industrial production, which signals reduced energy demand and consumption in Europe.
                Today's U.S. Earnings Reports Earnings reports (confirmed releases, sorted by mkt cap): LOW-Lowe's (BEST earnings consensus $0.66), EL-Estee Lauder (0.24), SYY-Sysco (0.57), A-Agilent Technologies (0.73), URBN-Urban Outfitters (0.32), VAL-Valspar (0.80), HTHT-China Lodging Group Ltd. (0.11), QRE-QR Energy LP (0.29).
                Global Financial Calendar
                Monday 8/15/11
                United States
                0830 ET Aug Empire manufacturing index expected +3.8 to 0.0, Jul +4.0 to -3.8.
                0900 ET Jun net long-term TIC flows expected +$30.2 billion, May +$23.6 billion.
                1000 ET Aug NAHB housing market index expected unchanged at 15, Jul +2 to 15.
                1130 ET Weekly 3-mo and 6-mo and monthly 1-year T-bill auctions.
                1325 ET Atlanta Fed President Dennis Lockhart speaks at ?A Discussion of the U.S. Economy? before the Rotary Club of Florence, Alabama.
                CHI
                2200 ET Jun China leading economic index.

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