Square - Chart of the Day

Square (SQ) is a repeat Barchart Chart of the Day.  If you had bought it on 6/21 , the last time it was featured, you would have made 46.61%.  The software company has a Trend Spotter buy signal, a Weighted Alpha of 195.11+ and gained 216.63% in the last year.

The Chart of the Day belongs to Square (SQ).  It's a repeat and since the last time it was Chart of the Day on 6/21 the stock gained 46.61%.  I found the software stock by using Barchart to sort today's Top Stocks to Own list first by Weighted Alpha, then again for technical buy signals of 80% or more.  Next I used the Flipchart feature to review the charts for consistent price appreciation.  Since the Trend Spotter signaled a buy on 9/11 the stock gained 26.88%.

Square, Inc. offers financial services and marketing services. The Company provides payments and point-of-sale which include hardware and software to accept payments, streamline operations and analyze business information. Its payments and POS services include In-Person Payments, Online Payments, Square Cash, Square Register, Square Analytics, Square Appointments and Square App Marketplace. The Company's financial services include Square Capital and Square Payroll. Square, Inc. is headquartered in San Francisco, California.

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. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.

Barchart technical indicators:

• Weighted Alpha 195.11+
• 100% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 14 new high and up 24.58% in the last month
• Relative Strength Index 81.95% in the last month
• Technical support level at 33.04
• Recently traded at 35.06 with a 50 day moving average of 28.94

Fundamental factors:

• Market cap $12.62 billion
• Revenue expected to grow 24.70% next year
• Earnings estimated to increase 148.00% this year, an additional 79.20% next year and continue to increase at the rate of 20.00% for the next 5 years
• Wall Street analysts issued 14 strong buy, 3 buy and 11 hold recommendations on the stock

Articles by this author:

Aerojet Rocketdyne: A Great Choice for your portfolio ----  features(AJRD),LMT, OA and KTOS

Align Technology: A Double Digit Growth Stock - features(ALGN), BDX,MCK and BCR

What Should I Buy???

Over the years I have probably been asked that question more than any other question by far.  First, over the same 45 years I have not found any single buy indicator that works every time.  I do have a list of my 6 favorites, all of which I have set up on my Barchart Custom Views.  I have found that the more of my criteria a stock meets the more likely it is to beat the averages.  Here is my list of criteria and the order in which I like to use them:

Weighted Alpha - Investors and analysts use weighted alpha to measure stock price movements over the course of (typically) one year. The values are weighted to emphasize more recent price swings over less recent ones. The premise behind the weighted alpha metric is that a fluctuation in an asset's price becomes less important as time moves on. The formula for weighted alpha is essentially a modified version of the traditional alpha from modern portfolio theory.  

I try to find stocks that have a higher Weighted Alpha than my benchmark (The Value Line Arithmetic Index)

Barchart Opinion - Overall Average Signal calculated from all 13 Barchart technical buy indicators. Signal Strength is a long-term measurement of the historical strength of the Signal, while Signal Direction is a short-term (3-Day) measurement of the movement of the Signal.

I usually try to find stocks with at least an 80% technical buy signal but occasionally will go down to 72%

50- 100 Day MACD Oscillator - Moving Average Convergence/Divergence (MACD) The MACD is similar in concept to the line oscillator. In fact, the buy/sell indicators are identical. The difference is the MACD uses exponential moving averages versus the simple moving averages used in the line oscillator study. 

Its the point where the 50 and 100 day moving averages cross and is a longer term indicator.  Overall, this is the trading signal that usually gives the best results

Trend Spotter - TrendSpotter is a computerized trend analysis system, developed by Barchart.com. The system uses a combination of wave theory, market momentum and volatility in an attempt to find a general trend for a specific market. TrendSpotter attempts to cut losers early and let winners run.

A graphical interpretation of TrendSpotter can be viewed using either Interactive or Technical Charts.

• When there is a single dot above the price, this is a resistance point and represents a bearish trend.
• When there is a single dot below the price, this is a support point and represents a bullish trend.
• When there are 2 dots, one above and one below the price, this represents a neutral or hold trend (these are the entry prices to make a new buy or sell trade).
• When a trend EXITS either a bullish or bearish trend, the trend is forced as a neutral trend for at least one day.

Number of new highs in the last month  - Simply the number of times in the last that a stock hit a new high ---since there are 20 or 21 trading days each month I like stock that have hit new highs in at least 50% of the current trading session or  at least 10

And finally the test where the rubber meets the road: A chart of the 20, 50 and 100 day moving averages with the Trend Spotter.  Hopefully, its a stock where the price has a 1 to 1 slope and the price, 20, 50 and 100 Day Moving averages never cross.  Today's Chart of Align Technologoy (ALGN) is a good example:

I hope this gives you an idea of how to find great stocks to own that will give your portfolio and better than market return.

Articles by this author:

Aerojet Rocketdyne: A Great Choice for your portfolio ----  features(AJRD),LMT, OA and KTOS

Align Technology: A Double Digit Growth Stock - features(ALGN), BDX,MCK and BCR

Morning Call 10/27

Barchart Morning Call

Barchart.com - Fri Oct 27, 6:40AM CDT

OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ17 +0.21%) this morning are up +0.25% and European stocks are up +0.63% at a 2-year high. U.S. stock index futures rose after the U.S. House passed a resolution that brings tax cuts a step closer. Also, technology stocks gained with Alphabet up 3% in pre-market trading and Amazon.com up 8% in pre-market trading after both companies reported stellar quarterly earnings results. European stocks gained on the slow approach by the ECB to reducing monetary stimulus along with the slump in EUR/USD to a 3-month low that gave European exporter stocks a boost. Asian stocks settled mostly higher: Japan +1.24%, Hong Kong +0.84%, China +0.27%, Taiwan -0.24%, Australia -0.22%, Singapore +0.90%, South Korea +0.69%, India +0.03%. China's Shanghai Composite climbed to a 1-1/4 year high on optimism in the Chinese economic outlook after China Sep industrial profits surged +27.7% y/y, the largest increase in 5-3/4 years. Japan's Nikkei Stock Index rallied to a 21-1/4 year high on strength in financial and telecommunication companies. Also. Japanese exporters surged as the yen fell to a 3-1/2 month low against the dollar, which boosted exporters' earnings prospects.

The dollar index (DXY00 +0.37%) is up +0.28% to a 3-1/4 month high after the U.S. House passed a budget resolution on tax reforms ad on speculation that President Trump will nominate a hawk as the next Fed Chair. EUR/USD (^EURUSD) is down -0.31% at a 3-month low after the ECB extended its QE program to at least Sep of 2018. USD/JPY (^USDJPY) is up +0.12% at a 3-1/2 month high as a rally in global equity markets reduces the safe-haven demand for the yen.

Dec 10-year T-note prices (ZNZ17 +0.01%) are up +1 tick.

As expected, the Bank of Russia cut its benchmark rate by -25 bp to 8.25% from 8.50%.

China Sep industrial profits jumped +27.7% y/y, the most in 5-3/4 years.

German Sep import prices rose +0.9% m/m and +3.0% y/y, stronger than expectations of +0.5% m/m and +2.6% y/y with the +0.9% m/m gain the largest monthly increase in 8 months.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Q3 GDP (expected +2.6% q/q annualized, Q2 +3.1%), (2) final-Oct University of Michigan U.S. consumer sentiment (expected -0.4 to 100.7, previous +6.0 to 101.1).

Notable S&P 500 earnings reports today include: Exxon Mobil (consensus $0.87), Phillips 66 (1.57), Colgate-Palmolive (0.73), Merck (1.04), Cabot Oil & Gas (0.08), AbbVie (1.39), Goodyear (0.67), Weyerhaeuser (0.32).

U.S. IPO's scheduled to price today: none.

Equity conferences this week: Society of Women Engineers National Conference on Fri.

OVERNIGHT U.S. STOCK MOVERS

Alphabet (GOOGL unch) climbed nearly 3% in pre-market trading after it reported Q3 EPS of $9.57, well above consensus of $8.34.

Amazon.com (AMZN -0.05%) jumped 8% in pre-market trading after it reported Q3 EPS of 52 cents, well above consensus of 4 cents.

First Solar (FSLR +1.12%) was upgraded to 'Buy' from 'Hold' at Needham & Co with a 12-month target price of $60.

Gilead Sciences (GILD -2.52%) slipped 3% in after-hours trading after it management said during a conference call that competition from AbbVie's hepatitis C drug Mavyret is undercutting Gilead and will have a bigger impact in Q4 and into next year.

Microsoft (MSFT +0.17%) rose almost 4% in after-hours trading after it reported Q1 EPS of 84 cents, better than consensus of 72 cents.

Intel (INTC +1.40%) gained over 1% in after-hours trading after it reported Q3 adjusted EPS of $1.01, higher than consensus of 80 cents.

Expedia (EXPE -0.37%) slumped 15% in after-hours trading after it reported Q3 adjusted EPS of $2.51, weaker than consensus of $2.62.

Stryker (SYK -0.91%) rose almost 3% in after-hours trading after it reported Q3 adjusted EPS of $1.52, above consensus of $1.49, and he said is sees full-year adjusted EPS of $6.45 to $6.50, better than consensus of $6.43.

Align Technology (ALGN +0.61%) rallied 13% in after-hours trading after it reported Q3 net revenue of $385.3 million, higher than consensus of $359.8 million, and then said it sees Q4 net revenue of $391 million to $398 million, better than consensus of $368.2 million.

Electronics for Imaging (EFII -1.33%) sank 15% in after-hours trading after it reported Q3 adjusted EPS of 48 cents, below consensus of 58 cents.

Trimble (TRMB +0.02%) climbed 4% in after-hours trading after it reported Q3 revenue of $670 million, above consensus of $660.1 million, and said it sees Q4 revenue of $655 million-$685 million, better than consensus of $653.5 million.

Fortinet (FTNT +1.01%) dropped 9% in after-hours trading after it said it sees Q4 revenue of $404 million-$412 million, below consensus of $416.9 million, and said it sees full-year revenue of $1.48 billion-$1.49 billion, the mid-point below consensus of $1.49 billion.

Mattel (MAT -0.52%) tumbled 19% in after-hours trading after it reported Q3 adjusted EPS of 9 cents, well below consensus of 57 cents.

MARKET COMMENTS

Dec S&P 500 E-mini stock futures (ESZ17 +0.21%) this morning are up +6.50 points (+0.25%). Thursday's closes: S&P 500 +0.13%, Dow Jones +0.31%, Nasdaq -0.28%. The S&P 500 on Thursday closed higher on carry-over support from a rally in European stocks after the ECB extended its QE program by 9 months and left open the option for a continuation beyond that. Stocks were also boosted by strong quarterly earnings results from Ford, UPS and Twitter.

Dec 10-year T-note prices (ZNZ17 +0.01%) this morning are up +1 tick. Thursday's closes: TYZ7 -2.50, FVZ7 -2.00. Dec 10-year T-notes on Thursday closed lower on increased inflation expectations after the 10-year T-note breakeven inflation rate rose to a 1-1/2 week high, and by strength in stocks, which curbed the safe-haven demand for T-notes. T-notes found some support on the weaker-than-expected U.S. Sep pending home sales.

The dollar index (DXY00 +0.37%) this morning is up +0.28% to a 3-1/4 month high. EUR/USD (^EURUSD) is down -0.0036(-0.31%) to a 3-month low and USD/JPY (^USDJPY) is up +0.14 (+0.12%) to a 3-1/2 month high. Thursday's closes: Dollar Index +0.901 (+0.96%), EUR/USD -0.0162 (-1.37%), USD/JPY +0.24 (+0.21%). The dollar index on Thursday rallied to a 3-month high and settled higher on weakness in EUR/USD which fell to a 3-month low after the ECB extended its QE program until Sep 2018 and ECB President Draghi said the Eurozone still needs "ample" stimulus.

Dec crude oil (CLZ17 -0.13%) this morning is down -8 cents (-0.15%) and Dec gasoline (RBZ17 -0.17%) is -0.0058 (-0.34%). Thursday's closes: Dec WTI crude +0.46 (+0.88%), Dec gasoline +0.0156 (+0.93%). Dec crude oil and gasoline on Thursday closed higher on comments from Saudi Crown Prince Mohammed bin Salman who said that he backed the extension of OPEC crude production cuts beyond Mar of 2018. Crude oil prices were also supported by the increase in the crack spread to a 1-1/4 month high, which may spur refineries to boost their crude purchases to refine the crude into gasoline. Crude oil prices were undercut by the rally in the dollar index to a 3-month high.

Metals prices this morning are weaker with Dec gold (GCZ17 -0.17%) -1.5 (-0.12%) at a 3-week low, Dec silver (SIZ17-0.78%) -0.106 (-0.63%) at a 3-week low and Dec copper -0.055 (-1.72%) at a 1-1/2 week low. Thursday's closes: Dec gold -9.4 (-0.73%), Dec silver -0.114 (-0.67%), Dec copper (HGZ17 -2.14%) -0.0055 (-0.17%). Metals on Thursday closed lower on the rally in the dollar index to a 3-month high and by strength in stocks that reduced the safe-haven demand for precious metals.

GLOBAL EVENT CALENDAR10/27/2017

		Friday, Oct 27
US	0830 ET	Q3 GDP expected +2.6% (q/q annualized), Q2 +3.1%. Q3 personal consumption expected +2.1%, Q2 +3.3%. Q3 GDP price index expected +1.7%, Q2 +1.0%. Q3 core PCE expected +1.3% q/q, Q2 +0.9% q/q.
	1000 ET	Final-Oct University of Michigan U.S. consumer sentiment expected -0.4 to 100.7, previous +6.0 to 101.1.
		Monday, Oct 30
US	0830 ET	Sep personal spending expected +0.8%, Aug +0.1%. Sep personal income expected +0.4%, Aug +0.2%. Sep PCE deflator expected +0.4% m/m, Aug +0.2% m/m and +1.4% y/y. Sep core PCE deflator expected +0.1% m/m, Aug +0.1% m/m and +1.3% y/y.
	1030 ET	Oct Dallas Fed manufacturing activity expected -0.3 to 21.0, Sep +4.3 to 21.3.
	1100 ET	USDA weekly grain export inspections.
	1600 ET	USDA crop conditions and progress report.

U.S. STOCK CALENDAR10/27/2017

Name	Ticker	Time	Description	Period	Estimate
Weyerhaeuser Co	WY US	03:05	Q3 2017 Earnings Release	Q3 17	0.319
Goodyear Tire & Rubber Co/The	GT US	Bef-mkt	Q3 2017 Earnings Release	Q3 17	0.674
AbbVie Inc	ABBV US	Bef-mkt	Q3 2017 Earnings Release	Q3 17	1.385
Ventas Inc	VTR US	Bef-mkt	Q3 2017 Earnings Release	Q3 17	1.043
Cabot Oil & Gas Corp	COG US	06:30	Q3 2017 Earnings Release	Q3 17	0.083
Aon PLC	AON US	06:30	Q3 2017 Earnings Release	Q3 17	1.278
Rockwell Collins Inc	COL US	06:30	Q4 2017 Earnings Release	Q4 17	1.79
Merck & Co Inc	MRK US	06:45	Q3 2017 Earnings Release	Q3 17	1.039
LyondellBasell Industries NV	LYB US	06:45	Q3 2017 Earnings Release	Q3 17	2.492
Colgate-Palmolive Co	CL US	06:55	Q3 2017 Earnings Release	Q3 17	0.733
Phillips 66	PSX US	07:00	Q3 2017 Earnings Release	Q3 17	1.569
Exxon Mobil Corp	XOM US	08:00	Q3 2017 Earnings Release	Q3 17	0.87
Merck & Co Inc	MRK US	08:00	Q3 2017 Earnings Call	Q3 17
Eastman Chemical Co	EMN US	08:00	Q3 2017 Earnings Call	Q3 17
Aon PLC	AON US	08:30	Q3 2017 Earnings Call	Q3 17
Chubb Ltd	CB US	08:30	Q3 2017 Earnings Call	Q3 17
Simon Property Group Inc	SPG US	08:30	Q3 2017 Earnings Release	Q3 17	2.873
Chevron Corp	CVX US	08:30	Q3 2017 Earnings Release	Q3 17	0.988
Leggett & Platt Inc	LEG US	08:30	Q3 2017 Earnings Call	Q3 17
AbbVie Inc	ABBV US	09:00	Q3 2017 Earnings Call	Q3 17
Goodyear Tire & Rubber Co/The	GT US	09:00	Q3 2017 Earnings Call	Q3 17
Exxon Mobil Corp	XOM US	09:30	Q3 2017 Earnings Call	Q3 17
Cabot Oil & Gas Corp	COG US	09:30	Q3 2017 Earnings Call	Q3 17
FirstEnergy Corp	FE US	10:00	Q3 2017 Earnings Call	Q3 17
Principal Financial Group Inc	PFG US	10:00	Q3 2017 Earnings Call	Q3 17
Ventas Inc	VTR US	10:00	Q3 2017 Earnings Call	Q3 17
Simon Property Group Inc	SPG US	10:00	Q3 2017 Earnings Call	Q3 17
Weyerhaeuser Co	WY US	10:00	Q3 2017 Earnings Call	Q3 17
LyondellBasell Industries NV	LYB US	11:00	Q3 2017 Earnings Call	Q3 17
Colgate-Palmolive Co	CL US	11:00	Q3 2017 Earnings Call	Q3 17
National Oilwell Varco Inc	NOV US	11:00	Q3 2017 Earnings Call	Q3 17
Chevron Corp	CVX US	11:00	Q3 2017 Earnings Call	Q3 17
Cincinnati Financial Corp	CINF US	11:00	Q3 2017 Earnings Call	Q3 17
Mohawk Industries Inc	MHK US	11:00	Q3 2017 Earnings Call	Q3 17
Phillips 66	PSX US	12:00	Q3 2017 Earnings Call	Q3 17
LyondellBasell Industries NV	LYB US		Q3 2017 Earnings Call	Q3 17
Apartment Investment & Management Co	AIV US	13:00	Q3 2017 Earnings Call	Q3 17
Harris Corp	HRS US	13:00	Annual General Meeting

Toll Brothers - Chart of the Day

Toll Brothers (TOL) is the Barchart Chart of the Day.  The home builder has a Trend Spotter buy signal, a Weighted Alpha of 65.07+ and gained 61.42% in the last year.

The Chart of the Day belongs to Toll Brothers (TOL).  I found the home builder stock by using Barchart to sort the Russell 3000 Index stocks first for the most frequent number of new highs in the last month then again for 100% technical buy signals.  Since the Trend Spotter signaled a buy on 9/12 the stock gained 12.69%\.

Toll Brothers designs, builds, markets and arranges financing for single-family detached and attached homes in middle and high income residential communities in thirteen states and five regions around the country. The communities are generally located on land Co. has developed, although, due to the poor economic conditions during the early 1990's, Co. has been able to acquire a number of fully approved parcels and often improved subdivisions.

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. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.

Barchart technical indicators:

• 100% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 20 new highs and up 16.28% in the last month
• Relative Strength Index 82.65%
• Technical support level at 44.37
• Recently traded at 45.37 with a 50 day moving average of 40.69

Fundamental factors:

• Market Cap $7.32 billion
• P/E 16.58
• Dividend yield .72%
• Revenue expected to grow 13.60% this year and another 15.50% next year
• Earnings estimated to increase 46.30% this year, an additional 12.20% next year and continue to compound at an annual rate of 13.56% for the next 5 years
• Wall Street analysts issued 5 strong buy, 6 buy, 9 hold and 1 under perform recommendation on the stock

Articles by this author:

Aerojet Rocketdyne: A Great Choice for your portfolio ----  features(AJRD),LMT, OA and KTOS

Align Technology: A Double Digit Growth Stock - features(ALGN), BDX,MCK and BCR