Money grows on Dollar Trees

I like to screen on Barchart to find growth stocks that are moving in the current market.  With 12 new highs and up by 8.30% in the last month Dollar Tree (DLTR) deserves a look.

Dollar Tree Stores, Inc (DLTR) is an operator of discount variety stores offering merchandise at a fixed price point of $1.00 or less. Its stores successfully operate in major metropolitan areas, mid-sized cities and small towns and perform well in a variety of locations. They offer a wide range of quality everyday general merchandise in many categories, including housewares, seasonal goods, candy and food, toys, health and beauty care, gifts, party goods, stationery, books, personal accessories, and other consumer items.

Right now they have around 4,100 stores but have a goal of 7,000 by the end of the decade.  300 stores will be added this year and 75 of the old ones will either be expanded or relocated.  Most of the items are prepackaged dry goods but management intends to add coolers and freezer to a lot of the stores in the future.

In addition to its aggressive expansion program, since 2003 they have had a stock buy back program that has bought back almost 25% of the outstanding stock and still has a way to go.

Factors to Consider:

Technical Factors:

• 96% Barchart technical buy signals
• Trend Spotter buy signals
• Above its 20, 50 and 100 day moving averages
• 12 new highs and up 8.30% in the last month
• Relative Strength Index 69.71% and climbing
• Trades around 62.53 with a 50 day moving average of 57.04

Fundamental Factors:

• Beginning to be push by the Wall Street brokerages with their analyst releasing 6 strong buy, 5 buy and 9 hold recommendations
• Sales are forcasted to grow by 11.40% this year and another 8.40% next year
• Earnings are projected to increase by 16.40% this year, 13.80% next year and continue to grow annually by 13.66% a year for the next 5 years
• Goldman Sachs made this a 5 year buy pick on 3/8

General Investor Sentiment:

• Readers on Motley Fool have discovered this stock and 521 readers have ventured an opinion
• CAPS members vote 363 to 33 that the stock will beat the market
• The more experienced All Stars agree 115 to 10 for the same result

Summary:  The Bible says " The poor will always be with you" and I'm saying that there will always be value seeking shoppers and they will continue to shop at Dollar Tree (DLTR).  With an aggressive expansion program, continued stock buy backs and a same store sales increase between 4-8% this stock could give investors around a 16% annual total return over the next 5 years.

Amtrust Financial

AFSI - Amtrust Financial

AMTRUST (AFSI ) is a multinational property and casualty insurer specializing in coverage for small businesses. They offer workers' compensation insurance, extended warranty coverage, specialty middle market property and casualty insurance and a host of related products and services.They have built a reputation as an innovative, technology driven insurance company. Their commitment to excellence is the common thread connecting each of our businesses.

Technical Factors:

• 96% Barchart technical buy signal
• Trend Spotter buy signal
• above 20, 50 and 100 day moving averages
• 17 new highs and up 15.14% in the last month
• Relative Strength Index 80.05% and rising
• Trades around 21.06 with a 50 day moving average of 19.05

I like Ronald McDonald

I like McDonalds (MCD) as a company and I like Ronald McDonald as a mascot.  What is it about the radical left in the US that makes them target success as bad?  They hate Wal-Mart because they revolutionized retail and bring you the lowest prices.  The hate Google because they have brought to the masses information at your finger tips.  They hate the banks because they bring financing to the public and hate Wall Street because public ownership of business is evil.

Lately they claim McDonalds makes kids fat.  They want to ban toys in Happy Meals and now they target Ronald as some kind of evil clown out of a Stephen King novel.  Get a life.

McDonalds amazes me.  I know that an immigrant can be off the boat and the next day make a better hamburger that you can get at Mickey D's but they still sell more than anyone on the planet.  They sell more hamburgers, sell more breakfasts, out sell even Starbucks when it comes to coffee and now target smoothie drinks.  No matter what food item they take on, in short order they are number 1.  Nothing succeeds like success and that is what they do.

I found McDonalds (MCD) when screening on Barchart to find the S&P 500 companies hitting the most frequent new highs in the last month.  I'd buy the stock on price momentum alone.

For those of you who don't know: McDonald's Corporation (MCD) develops, operates, franchises and services a worldwide system of restaurants that prepare, assemble, package and sell a limited menu of value-priced foods. The company operates primarily in the quick-service hamburger restaurant business. All restaurants are operated by the company or, under the terms of franchise arrangements, by franchisees who are independent third parties, or by affiliates operating under joint-venture agreements between the company and local business people.  This year they will open 750 new locations -- that's more new locations opened in one year thant most fast food chains open in a life time.

Factors to Consider:

Technical Factors:

• 96% Barchart technical buy signal
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 18 new highs and up 4.82% in the last month
• Relative Strength Index 74.35% and rising
• Trades around 82.30 with a 50 day moving average of 77.26

Fundamental Factors:

• MCD is a Wall Street darling and a core holding in most brokerages model growth portfolios
• Brokerage analysts have released 8 strong buy, 8 buy, 9 hold and no sell recommendations for their brokers to push to clients
• Sales are projected to increase by 9.30% this year and another 5.50% next year
• Earnings are forecast to increase by 10.60% this year, another 9.20% next year and continue by an increase of 10.32% annually for the next 5 years
• All this growth and a 3.30% dividend that is only 50% of net earnings

General Investor Sentiment:

• This is one of the most widely followed stocks on Motley Fool with over 6,549 readers expressing an opinion on this company
• The CAPS members vote 4,989 to 274 that the stock will beat the market
• The more experienced All Stars agree with a 1,234 to 50 vote for the same result.

Summary:  With over 65% of their sales coming form non-US locations this company is poised to benefit from the turnaround of the world-wide economy.  McDonalds (MCD) has current upward price momentum, a history of growth and earnings success, pays a decent dividend and still has room to grow until they make everyone in the world a customer.

Barchart Morning Call 5/20

Barchart Morning Call

Barchart.com - 1 hr 21 mins ago

Overnight Developments

• Global stocks are mixed with the European Euro Stoxx 50 up +0.09% and June S&Ps down -4.00 points. Treasuries are higher after Chicago Fed President Evans said late yesterday that "slow progress" in the economy justifies stimulus measures, while gold and the dollar strengthened on speculation Greece will have to reorganize its debt. The yield on the 10-year Greek bond jumped 52 bp to a record 16.51%, which widened the difference with German bunds to a record 1,344 bp. Increased M&A activity is boosting European equities as Micro Focus International Plc rose 5.7% after the FT reported Advent International approached the company about a takeover, while Barnes & Noble surged 25% after it received a takeover offer from Liberty Media Corp. The euro weakened against the dollar after the Bundesbank said in its monthly bulletin that "growth is likely to ease somewhat in the foreseeable future." The decline in the euro was limited however, after Apr German producer prices rose a more-than-expected +1.0% m/m and +6.4% y/y, which will keep the pressure on the ECB for further interest rate hikes.
• The Asian stock markets today closed mixed with Japan down -0.14%, Hong Kong +0.16%, China +0.03%, Taiwan -0.63%, Australia -0.51%, Singapore -0.13%, South Korea +0.77%, India +1.02%. At the conclusion of its 2-day meeting, the BOJ kept its benchmark interest rate unchanged at 0.00% to 0.10%, as-expected, and refrained from increasing its credit programs or asset purchases. Chinese stocks closed little changed after PBOC Governor Xiaochuan said that inflation remains "high" and China needs to strike a balance between economic growth and consumer prices, which fueled speculation the central bank will implement additional tightening measures. Concern the US economic recovery is losing momentum also pressured Asian stocks after Apr US existing home sales and the May Philadelphia Fed manufacturing index unexpectedly declined.

Overnight U.S. Stock News

• June S&Ps this morning are trading down -4.00 points. The US stock market yesterday shook off losses from weaker-than-expected economic data on existing US home sales, leading indicators and manufacturing and closed higher as a bigger-than-forecast drop in weekly jobless claims bolstered optimism about the economy: Dow Jones +0.36%, S&P 500 +0.22%, Nasdaq Composite +0.30%. Bullish factors for stocks included (1) the larger-than-expected drop in weekly initial unemployment claims (-29,000 to 409,000 versus expectations of -14,000 to 420,000), (2) the action by Citigroup to revise up its global per-share earnings forecast for this year to +18% from a Sep forecast of +12%, citing stronger revenue growth and sustained margins, and (3) comments from St. Louis Fed President Bullard who said that declining inflation expectations have lessened the need to begin withdrawing record Fed stimulus.
• Bearish factors included (1) the unexpected decline in the May Philadelphia Fed manufacturing index which expanded at its slowest pace in 7 months (-14.6 to 3.9 versus expectations of +1.5 to 20.0), (2) the unexpected decline in Apr existing home sales (-0.8% to 5.05 million versus expectations of +2.0% to 5.20 million, (3) the unexpected decline in Apr leading indicators which fell for the first time in 10 months (-0.3% versus expectations of +0.1%), and (4) weakness in technology stocks after Goldman Sachs downgraded Intel, KLA-Tencor and Applied Materials, citing excess supply and increased competition from tablet computers.
• Barnes & Noble (BKS) surged 25% in pre-market trading after Liberty Media offered to purchase the company for $17 a share.
• The Gap (GPS) slumped 15% in European trading after the largest US apparel chain cut its full-year profit forecast by 22% as costs to make clothes rose faster than expected.

Today's Market Focus

• June 10-year T-notes this morning are up +6 ticks. T-note prices yesterday fell to a 1-week low after initial jobless claims fell more than expected, but prices recovered their losses and closed higher after May manufacturing activity on the US East Coast and Apr existing home sales unexpectedly declined: TYM11 +2.5, FVM11 +3.7, EDU11 +1.5. Bearish factors included (1) the larger-than-expected drop in weekly initial unemployment claims (-29,000 to 409,000 versus expectations of -14,000 to 420,000), and (2) slack demand for the Treasury's $11 billion auction of 10-year TIPS that has a bid-to-cover ratio of 2.66, weaker than the 12-auction average of 2.72. Bullish factors included (1) the unexpected decline in the May Philadelphia Fed manufacturing index which expanded at its slowest pace in 7 months (-14.6 to 3.9 versus expectations of +1.5 to 20.0), (2) the unexpected decline in Apr existing home sales (-0.8% to 5.05 million versus expectations of +2.0% to 5.20 million, (3) the unexpected decline in Apr leading indicators which fell for the first time in 10 months (-0.3% versus expectations of +0.1%), and (4) comments from New York Fed President Dudley who said ?We still have a considerable way to go to meet the Fed?s dual mandate of full employment and price stability,? which suggests he is in no hurry to end the Fed?s record stimulus measures.
• The dollar index this morning is higher with the dollar/yen +0.05 yen and the euro/dollar -0.73 cents. The dollar index yesterday settled lower as a drop in the yen to a 3-week low against the dollar was offset by weaker-than-expected US economic data: Dollar Index -0.352, USDJPY -0.067, EURUSD +0.00616. Bearish factors included (1) the unexpected declines in Apr leading indicators, existing US home sales and May Philadelphia Fed manufacturing, which indicates economic weakness that is dollar negative, (2) comments from New York Fed President Dudley who said ?We still have a considerable way to go to meet the Fed?s dual mandate of full employment and price stability,? which suggests he is in no hurry to end the Fed?s record stimulus measures, and (3) the action by Goldman Sachs to cut its 3-month dollar forecast to $1.45 per euro from $1.40, saying "With unemployment still high, fiscal consolidation looming and continued weakness in the real estate sector, the growth outlook remains less compelling in the US than in may other regions or countries." Bullish factors included (1) the slide in the yen to a 3-week low against the dollar on speculation the BOJ will keep stimulus efforts in place after Q1 Japan GDP was revised downward, and (2) the larger-than-expected drop in weekly US initial unemployment claims.
• June crude oil prices this morning are trading up +13 cents a barrel and June gasoline is -0.80 of a cent per gallon. Crude oil and gasoline prices yesterday settled lower as a weak dollar and a larger-than-expected drop in weekly jobless claims fueled an early rally but, a mid-morning report on weaker-than-expected manufacturing activity sent prices tumbling into the close: CLM11 -$1.66, RBM11 -2.95. Bearish factors included (1) the unexpected decline in the May Philadelphia Fed manufacturing index which slid to its lowest level in 7 months and signals weakened energy demand, (2) the larger-than-expected downward revision to Q1 Japan GDP, which indicates decreased fuel demand in the world's third-largest oil consumer, and (3) the prediction from the AAA that the number of Americans driving more than 50 miles over the upcoming Memorial Day holiday weekend will fall by 100,000 to 30.9 million, the first decline in 3 years as high gasoline prices deter Americans from taking road trips. Bullish factors included (1) the weaker dollar which lift investment demand for commodities, (2) the larger-than-expected decline in weekly US jobless claims, which suggest improvement in the labor market that may benefit fuel demand, and (3) the report from NOAA that said the US may experience an "above normal" Atlantic hurricane season this year with 12 to 18 named storms, which increases the chances of damage to Gulf Coast refiners that may limit US fuel output.

Today's U.S. Earnings Reports Earnings reports (confirmed releases, sorted by mkt cap) DCI-Donaldson (BEST earnings consensus $0.73), EXXI-Energy XXI Bermuda Ltd. (0.48), DANG-E-Commerce China Dangdang (0.00), ANN-ANN Inc. (0.48), YGE-Yingli Green Energy Holding (0.38), HIBB-Hibbett Sports (0.67), CATO-Cato Corp. (0.95), CIS-Camelot Information Systems (0.10), BH-Biglari Holdings (4.96), AUTC-AutoChina International Ltd. (0.30).
Global Financial Calendar

Friday 5/20/11
United States
0800 ET	New York Fed President William Dudley speaks about economic conditions at an event in Fishkill, New York.
Japan
0030 ET	Mar Japan all industry activity index expected -6.1% m/m, Feb +0.7% m/m.
n/a	BOJ announces interest rate decision.
Germany
0200 ET	Apr German producer prices expected +0.6% m/m and +6.0% y/y, Mar +0.4% m/m and +6.2% y/y.
Canada
0700 ET	Apr Canada CPI expected +0.5% m/m and +3.4% y/y, Mar +1.1% m/m and +3.3% y/y.
0700 ET	Apr Bank f Canada core CPI expected +0.2% m/m and +1.6% y/y, Mar +0.7% m/m and +1.7% y/y.
0830 ET	Mar Canada retail sales expected +0.9% m/m and +0.7% less autos, Feb +0.4% and +0.7% less autos.
Euro-Zone
0330 ET	ECB Council member Yves Mersch, European Financial Stability head Klaus Regling and head of the European finance ministers, Jean-Claude Juncker, speak at a conference in Luxembourg.
1000 ET	May Euro-Zone consumer confidence expected -0.4 to -12.0, Apr -1.0 to -11.6.

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

State Street - Barchart Chart of the Day

Barchart.coms Chart of the Day - State Street Corp (STT)

Barchart Research Team - Barchart.com - Thu May 19, 7:42PM CDT

Related Stocks

 STT - State Street Corp

Sym	Last	Chg	Pct
STT	47.47	+0.39	+0.83%

The "Chart of the Day" is State Street Corp (STT), which showed up on Thursday's list of stocks that had a new "Buy" signal from the Barchart "TrendSpotter" trading system. State Street on Thursday rallied by 0.83% and posted a new 3-month high. In recent news on the stock, State Street on April 19 reported Q1 operating EPS of 88 cents versus the consensus of 86 cents. FT reported on May 16 that State Street plans to expand its securities services division. CLSA analyst Mike Mayo on May 12 reiterated his Outperform rating and said that recent weakness in State Street's stock related to the SEC investigation of bank processing of FX trading is overdone. State Street, with a market cap of $23 billion, is a major U.S. custody bank that provides investment servicing, investment management, investment research, and trading services.


How we found the Chart of the Day:
which showed up on today's list of stocks that had a new "Buy" signal from the Barchart "TrendSpotter" trading system. 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: 10% Buy
• Long-Term Indicators: 33% Buy
• Overall Average 88% 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

XCEL Energy is a sure thing

I was screening on Barchart for an electric utility with great price momentum and came across XCEL Energy (XEL).  When I say a sure thing I mean that the company is rated 100 for both price stability and earning predictability so what you see is what you get with a minimum of surprises.  The company has already received a 20 year licence on one of its plants and is soon expected to receive another one on another.  They also have been granted new price increases in several other jurisdictions.  I like the utility on its price momentum alone.

Xcel Energy Inc. (XEL) is predominantly an operating public utility engaged in the generation, transmission and distribution of electricity and the transportation, storage and distribution of natural gas. The company generates electricity using coal, nuclear, hydro, wind, and solar energy. It also purchases, transports, distributes, and sells natural gas to retail customers, as well as transports customer-owned natural gas. Xcel Energy primarily serves customers in the areas of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin. 

Factors to consider:

Technical Factors:

• 96% Barchart technical buy signal
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 14 new highs and up 5.62% in the last month
• Relative Strength Index 72.08% and rising
• Trades around 25.20 with a 50 day moving average of 24.05

Fundamental Factors:

• Wall Street brokerage analysts have published 3 strong buy and 10 hold recommendations for their income clients
• Sales are projected to increase by 3.40% this year and another 3.30% next year
• Earnings are expected to increase by 6.20% this year, 5.80% next year and 5.44% annually for the next 5 years due mainly to the price increase already granted
• The 4.30% dividend is only 57% of net earnings so it should be secure

General Investor Sentiment:

• Interest on Motley Fool is high for a utility with 454 readers expressing an opinion on this stock
• CAPS members vote 311 to 30 that the stock will beat the market
• The More experienced All Stars agree with a 106 to 7 vote

Summary:  For income investors looking for an electric utility with growth prospects, price increases that are already approved and a 4.30% dividend that is only 57% of earnings XCEL Energy (XEL) should be a buy.  I look for a total annual return in neighborhood of 5.50% for the next 5 years.

Lorillard still makes money

OK, all you tree huggers, vegans, health nuts and wackos take your best shot.  I live in the Carolinas and just want to bring an investment opportunity to your attention.  This morning I was screening on Barchart for the S&P 500 stocks that were hitting the most frequent new highs in the last month and Lorillard (LO) floated to the top.  I know cream rises to the top and something else floats and sometimes you can't tell the difference.  This stock's steady and current dividend of 5.30% and 18 new highs in the last month cannot be ignored.  The momentum is there.

LORILLARD (LO) is the third largest manufacturer of cigarettes in the United States. Lorillard is the oldest continuously operating tobacco company in the U.S. Newport, Lorillard's flagship brand, is a menthol-flavored premium cigarette brand and the top selling menthol and second largest selling cigarette in the U.S. In addition to Newport, the Lorillard product line has five additional brand families marketed under the Kent', True', Maverick', Old Gold' and Max' brand names. These six brands include 44 different product offerings which vary in price, taste, flavor, length and packaging. Lorillard's manufactures all of its products at its Greensboro, North Carolina facility and maintains its headquarters there.

Factors to consider:

Technical Factors:

• 96% Barchart overall technical buy signal
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 18 new highs and up 15.14% in the last month
• Relative Strength Index 88.03% and rising
• Trades around 113.99 with a 50 day moving average of 98.47

Fundamental Factors:

• Tobacco products are cash cows and cannot be ignored by income investors
• Wall Street brokerage analysts have released 1 strong buy, 4 buy and 5 hold recommendations for their clients
• Sales are projected to increase by 10.30% this year and another 5.10% next year
• Earnings increase estimates of 13.30% this year, 9.60% next year and 9.50% annually for the next 5 years
• When I see a company paying a 5.30% dividend and sales and earnings projections above 5.00% I feel the dividend is secure

General Investor Sentiment:

• On Motley Fool 454 readers venture an opinion on the issue
• CAPS members vote 310 to 17 that the stock will beat the market
• The more experienced All Stars also vote in the same direction with a 120 to 7 vote

Summary:  If you have moral issues about tobacco products ignore this issue but if you want both dividends and growth I think you can look for an 18.5% annual total return over the next 5 years with a buy of Lorillard (LO).

China Techfaith Wireless is a buy

This morning one of the fastest rising stocks on my Barchart screener is China Techfaith Wireless (CNTF).  The stock is on a roll and might be your chance to get in before the brokerages start pushing to their clients.  There are 13 firms following the stock but at this time they are not willing to commit to forecasts of sales and earnings. Their product -- headsets are going to be a vital product with call centers, Skype users and more and more computers sold with both voice and visual communication capabilities.  Look at the stock momentum in the last month.

China TechFaith Wireless Communication Technology Limited (CNTF) is a leading independent mobile handset design house based in China. They provide complete design services spanning the entire handset design cycle, which involves industrial design, mechanical design, software design, hardware design, component selection and sourcing, prototype testing, pilot production and production support. They design mobile handsets and provides mobile handset solutions on GSM/GPRS, WCDMA/UMTS and CDMA technologies.

Factors to Consider:

Technical Factors:

• 100% Barchart overall technical buy signal
• Trend Spotter buy signal
• Priced above its 20, 50 and 100 day moving averages
• 14 new highs and up 66.42% in the last month
• Relative Strength Index 83.11% and rising
• Trades around 6.82 with a 50 day moving average of 4.58

Fundamental Factors:

• Although 13 Wall Street brokerage firms have made recommendations to their client none are willing to stock out their neck with sales and earnings forecasts
• There are 3 strong buy, 4 buy, 3 hold and 3 old negative reports released.  The old negative reports haven't been reviewed in quite a while

General Investor Sentiment:

• Investor sentiment as measured on Motley Fool is a surprise for a stock will no analysts sales and earnings projections but having 379 readers having an opinion on the stock
• CAPS members vote 254 to 31 that the stock will beat the market
• The more experienced All Stars vote 79 to 15 for the same result

Summary:  I understand the need for the product.  The stock is getting notice.  If you are not willing to buy China Techfaith Wireless (CNTF) at this point, better put it on your watch list and look for analysts projection when published.

Barchart Morning Call 5/19

Barchart Morning Call

Barchart.com - 31 mins ago

Overnight Developments

• Global stocks are mixed with the European Euro Stoxx 50 up +0.97% and June S&Ps up +4.50 points. The dollar and Treasuries are weaker while the British pound rallied when UK retail sales rose more than expected. Apr UK retail sales with auto fuel rose +1.1% m/m and +2.8% y/y, stronger than expectations of +0.8% m/m and +2.5% y/y as warm weather and the extra bank holiday for the royal wedding boosted consumer spending. The euro strengthened against the dollar after Goldman Sachs cut its 3-month dollar forecast to $1.45 per euro from $1.40, saying "With unemployment still high, fiscal consolidation looming and continued weakness in the real estate sector, the growth outlook remains less compelling in the US than in may other regions or countries." Stock prices received a boost after Citigroup revised up its global per-share earnings forecast for this year to +18% from a Sep forecast of +12%, citing stronger revenue growth and sustained margins. Increased M&A activity also lifted US and European stocks as Takeda Pharmaceutical agreed to buy Nycomed for 9.6 billion euros ($13.7 billion) and Toshiba offered $2.3 billion for Switzerland's Landis+Gyr AG.
• The Asian stock markets today closed mixed with Japan down -0.43%, Hong Kong +0.66%, China -0.60%, Taiwan -0.58%, Australia +1.34%, Singapore +1.00%, South Korea -1.88%, India +0.31%. Japanese stocks closed lower after the economy shrank more than expected in Q1 as the Mar 11 earthquake and tsunami disrupted production and prompted consumers to cut back spending. Q1 Japan GDP was revised down to a contraction of -0.9% q/q and -3.7% annualized from the originally reported -0.5% q/q and -2.0% annualized, which sent Japan into its third recession within the last decade. The yen weakened to a 3-week low against the dollar on speculation the BOJ and the government will continue to provide record stimulus measures to Japan's economy. China's Shanghai Stock Index closed lower, led by declines in property developers and power producers, on concern the PBOC will boost borrowing costs and higher coal prices will hurt power producers' corporate earnings. China's National Business Daily reported that inflation may exceed 6% in June or July due to a lower comparison base last year.

Overnight U.S. Stock News

• June S&Ps this morning are trading up +4.50 points. The US stock market yesterday finished higher after Dell reported robust quarterly earnings results and as energy and raw-material producers gained after commodities rallied: Dow Jones +0.65%, S&P 500 +0.88%, Nasdaq Composite +1.14%. Bullish factors for stocks included (1) a rally in technology stocks after Dell, the world's second-largest computer maker, reported better-than-expected earnings results, (2) strength in energy and raw-material producers as commodities climbed on signs of increased demand, (3) overall strong company earnings results as over two thirds of the 446 companies in the S&P 500 that have reported earnings since Apr 11 have topped analysts' estimates, and (4) the minutes of the Apr 26-27 FOMC meeting in which policy makers said that they have begun to coalesce on a strategy to reverse record monetary stimulus but that talks over an exit strategy don't mean that tightening "would necessarily begin soon."
• Bearish factors included (1) the warning from Treasury Secretary Geithner who said budget deficits threaten to erode the US economy and security and that they can't be reduced with "magical thinking," (2) comments from ECB Executive Board member Stark who said a Greek debt restructuring "would create a catastrophe" because it would damage the banking system, and (3) hawkish comments from St. Louis Fed President Bullard who said "I still think it is reasonable" to expect Fed tightening by the end of the year.
• PetSmart (PETM) rose 4.5% in pre-market trading after it reported Q1 profit of 61 cents a share, better than expectations of 55 cents.
• Intel (INTC) slipped 2.2% in European trading after Goldman Sachs cut its recommendation on the stock to "sell" from "neutral," citing excess supply and increased competition from tablet computers.

Today's Market Focus

• June 10-year T-notes this morning are down -6.5 ticks. T-note prices yesterday trended lower the entire day as the stock market rallied and after hawkish comments from St. Louis Fed President Bullard and the FOMC meeting minutes prompted long liquidation in Treasuries: TYM11 -13, FVM11 -8.5, EDU11 -2.0. Bearish factors included (1) reduced safe-haven demand for Treasuries as the stock market rallied, (2) hawkish comments from St. Louis Fed President Bullard who said "I still think is reasonable" to expect Fed tightening by the end of the year, and (3) the Apr 26-27 FOMC meeting minutes in which policy makers discussed a process for withdrawing record stimulus. Bullish factors included (1) the action by the Fed to purchase $1.81 billion of Treasuries as part of its QE2 asset-purchase program, and (2) the prediction from Nomura that the 10-year T-note yield may fall to 2.90% in the next few weeks will as equities and commodities decline as the end of QE2 looms next month.
• The dollar index this morning is weaker with the dollar/yen +0.20 yen and the euro/dollar +0.16 cents. The dollar index yesterday rebounded from early losses and finished higher after the Apr-26-27 FOMC meeting minutes revealed that Fed members began to coalesce on a strategy to begin removing record stimulus: Dollar Index +0.076, USDJPY +0.261, EURUSD +0.00125. Bullish factors included (1) the Apr-26-27 FOMC meeting minutes in which Fed members discussed exit strategies from record stimulus measures, (2) weakness in the British pound which fell to a 1-1/4 month low against the dollar after minutes from the BOE monetary policy meeting earlier this month showed policy makers voted 6-3 to keep interest rates on hold, (3) dollar supportive comments from St. Louis Fed President Bullard who said "I still think is reasonable" to expect Fed tightening by the end of the year, and (4) the -0.3% decline in Mar Euro-Zone construction output which fell for a second month and is euro negative. Bearish factors included (1) the rally in the stock market, which reduced the safe-haven demand for the dollar, and (2) euro supportive comments from EU Economic and Monetary Affairs Commissioner Rehn who said the base of the European economic expansion is "broadening from exports to domestic demand and thus the recovery is becoming more solid and self-sustaining."
• June crude oil prices this morning are trading up +34 cents a barrel and June gasoline is +0.63 of a cent per gallon. Crude oil and gasoline prices yesterday rallied sharply after an unexpected decline in weekly crude and distillate inventories and an increase in US gasoline demand: CLM11 +$3.19, RBM11 +3.62. Bullish factors included (1) the unexpected decline in weekly DOE crude inventories (-15,000 bbl versus expectations of +1.7 million bbl), (2) the unexpected decline in weekly DOE distillate supplies which fell to a 2-year low (-1.16 million bbl to 143.1 million bbl versus expectations of +500,000 bbl), (3) the smaller-than-expected climb in weekly gasoline inventories (+119,000 bbl versus expectations of +1.0 million bbl), (4) the +2.5% increase in weekly US gasoline demand to 9.05 million barrels a day, the first gain in 3 weeks, and (5) the prediction from Oilchem.net that China's fuel supplies may tighten as its largest refineries shut about 7% of their capacity in Q3 for scheduled maintenance. Bearish factors included (1) the stronger dollar, which reduces investment demand in commodities, and (2) the larger than expected increase in the US refinery utilization rate which climbed to its highest level in 1-1/2 months and bodes well for increased production of gasoline and distillate supplies in the weeks ahead (+1.5 to 83.2% versus expectations of +0.4 to 82.1%).

Today's U.S. Earnings Reports Earnings reports (confirmed releases, sorted by mkt cap) CRM-Salesforce.com (BEST earnings consensus $0.27), INTU-Intuit (2.28), GPS-The Gap (0.39), ADSK-Autodesk (0.37), ROST-Ross Stores (1.48), SHLD-Sears Holdings (-1.12), DLTR-Dollar Tree (0.75), MPEL-Melco Crown Entertainment Ltd (0.05), WSM-Williams-Sonoma (0.28), GME-GameStop (0.54), NDSN-Nordson (0.88), FL-Foot Locker (0.44), ARUN-Aruba Networks (0.15), BRCD-Brocade Communication Systems (0.10), TDW-Tidewater (0.51), FLO-Flowers Foods (0.46), TTC-Toro (1.61).
Global Financial Calendar

Thursday 5/19/11
United States
0830 ET	Weekly initial unemployment claims expected -14,000 to 420,000, previous -44,000 to 434,000. Weekly continuing claims expected -31,000 to 3.725 million, previous +5,000 to 3.756 million.
1000 ET	Apr existing home sales expected +2.0% to 5.20 million , Mar +3.7% to 5.10 million.
1000 ET	Apr leading indicators expected +0.1%, Mar +0.4%.
1000 ET	May Philadelphia Fed manufacturing index expected +1.5 to 20.0, Apr -24.9 to 18.5.
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 May 24-26.
1200 ET	New York Fed President William Dudley speaks at an event in Middletown, NY.
1300 ET	Treasury auctions $11 billion 10-year TIPS.
1330 ET	Dallas Fed President Richard Fisher speaks on ?Federal Reserve Functions and Economic Update? at a community forum in McAllen TX.
1340 ET	Chicago Fed President Charles Evans speaks at the 2010 Global Corporate Treasurers Forum in Chicago.
1630 ET	Weekly money supply report and Fed balance sheet.
Japan
0030 ET	Revised Mar Japan industrial production, previous -15.3% m/m and -12.9% y/y.
0030 ET	Mar Japan capacity utilization, Feb +2.9% m/m.
United Kingdom
0430 ET	Apr UK retail sales with auto fuel expected +0.8% m/m and +2.5% y/y, Mar +0.2% m/m and +1.3% y/y.
0430 ET	Apr UK retail sales ex auto fuel expected +0.8% m/m and +2.2% y/y, Mar +0.2% m/m and +0.9% y/y.
0600 ET	May UK CBI trends total orders expected -9, Apr -11.
Euro-Zone
0900 ET	ECB President Jean-Claude Trichet and Executive Board member Gertrude Tumpel-Gugerell speak in Frankfurt at a colloquium on ?European integration and stability.?

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

Dollar General -- Barchart Chart of the day

Barchart.coms Chart of the Day - Dollar General (DG)

Barchart Research Team - Barchart.com - Wed May 18, 5:18PM CDT

Related Stocks

 DG - Dollar General Corp.

Sym	Last	Chg	Pct
DG	34.06	+0.44	+1.31%

The "Chart of the Day" is Dollar General (DG), which showed up on Wednesday's Barchart "NYSE 12-Month High" list. Dollar General on Wednesday rallied by 1.31% and posted an all-time high of $33.62 for the stock that has history only back to its IPO in November 2009. TrendSpotter has been Long on Dollar General since March 14 at $28.65. In recent news on the stock, Dollar General on March 22 reported Q4 EPS of 65 cents versus the consensus of 59 cents and provided FY2011 EPS guidance of $2.20-2.30 versus the consensus of $2.14. Dollar General, with a market cap of $11 billion, is a discount retailer in the United States.


How we found the Chart of the Day:
We found the "Chart of the Day" by scanning the Barchart "New Highs/Lows" page. Then we clicked on the entry for NYSE 12-month highs. A new 12-month high is a popular sign of upside momentum. We then clicked on the "12-Month # Highs" column heading twice in order to sort the list in ascending order. Stocks with the fewest number of 12-month highs over the past 12 months are stocks that have only recently broken out to a new 12-month high and may have better upside potential then stocks that have already rallied sharply and have posted many new 12-month highs.
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: 80% Buy
• Medium-Term Indicators: 10% Buy
• Long-Term Indicators: 100% Buy
• 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

Merck seeks growth

If you're looking for an A+ financial strength company that pays a 4.60% dividend and is dedicated to growth you need look no farther than Merck (MRK).  I actually found Merck while screening on Barchart for the S&P 500 stocks hitting the most frequent new highs in the last month and was excited to see the recent price appreciation.  I was also excited by the fact that their R&D budget was 25% of sales -- can you find another company that is plowing back that kind of money into growth?  They are looking to the Chinese consumer to buy their new drugs. Let's look at the price momentum of 17 new highs and up 9.58% in the last month.

Merck & Co., Inc. (MRK) is a global research-driven pharmaceutical company dedicated to putting patients first. Established in 1891, Merck discovers, develops, manufactures and markets vaccines and medicines to address unmet medical needs. The company devotes extensive efforts to increase access to medicines through far-reaching programs that not only donate Merck medicines but help deliver them to the people who need them. Merck also publishes unbiased health information as a not-for-profit service.

Factors you should consider:

Technical Factors:

• 96% Barchart technical buy signal
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 17 new highs and up 9.58% in the last month
• Relative Strength Index 73.94% and rising
• Trades around 37.26 with a 50 day moving average of 34.21

Fundamental Factors:

• Core holding at most Wall Street brokerage firms
• Analysts have released 6 strong buy, 11 buy and 7 hold recommendations with no negative reports
• Sales are expected to increase by 2.60% this year and contract by 1.30% next year
• Earnings projection are for increase of 9.10% this year, followed by another 2.90% next year and continue by 3.98% annually for the next 5 years
• Pays a 4.60% dividend while you wait for the price appreciation

General Investor Sentiment:

• Very popular stock on Motley Fool with over 3,600 readers expressing an opinion
• CAPS members vote 2,679 to 201 for the stock to beat the market
• The more experienced All Stars agree with a vote of 689 to 37

Summary:  Investors that want a company that pays a steady dividend, reinvests 25% of sales back into the discovery and development of new products and is looking to expand in China then add Merck (MRK) to your watch lists.

Lowes goes lower

This morning while screening some of my favorite stocks on Barchart I noticed Lowes (LOW) hitting new lows.  Look at these sell signals.

Technical sell signals

• 100% Barchart short term sell signal
• Trend Spotter sell signal
• Below its 20, 50 and 100 day moving averages
• 9.59% off its recent high
• Relative strength Index 30.19% and falling

Barchart Morning Call 5/18

Barchart Morning Call

Barchart.com - 1 hr 25 mins ago

Overnight Developments

• Global stocks are mostly higher with the European Euro Stoxx 50 up +0.26% and June S&Ps up +2.90 points. The dollar is lower and most commodities are higher, which has led to gains in stocks led by basic-resource companies. The British pound fell against the dollar after minutes from the BOE meeting earlier this month showed policy makers voted 6-3 to keep interest rates on hold as the majority warned that tightening policy now could dampen consumer spending. The pound was also undercut after Apr UK unemployment claims unexpectedly rose +12,400 to 1.47 million, the fastest pace since Jan 2010. Mar Euro-Zone construction output fell for a second month as it slipped -0.3% m/m and -4.9% y/y. ECB officials ruled out ideas of a "soft" restructuring of Greek debt by European finance ministers after ECB Council member Bini Smaghi said there is no difference between a "hard" or "soft" restructuring and fellow ECB member Stark said that any restructuring would undermine the collateral Greek banks use to gain loans from the ECB and "this holds true for all kinds of restructuring." The ECB has bought 76 billion euros ($108 billion) of bonds of fiscally stressed countries in the past year and may suffer along with private investors in any restructuring and is also concerned that allowing Greece to renege on some of its obligations would create similar expectations for other indebted Euro-Zone nations.
• The Asian stock markets today closed mostly higher with Japan up +0.99%, Hong Kong +0.48%, China +0.75%, Taiwan +0.68%, Australia +0.21%, Singapore +0.15%, South Korea +1.66%, India -0.28%. Asian stocks were boosted on improved company earnings results and increased M&A activity. Austar United jumped 6.1% on speculation Foxtel is in advanced talks over a potential takeover and Mizhuo Financial gained 3.2% after the Nikkei newspaper reported it plans to merge its retail and corporate banks. Australian bank stocks declined after Moody's Investors Service downgraded the long-term, senior unsecured debt ratings of the country's four major banks on concern their reliance on wholesale debt markets makes them vulnerable to swings in investor confidence.

Overnight U.S. Stock News

• June S&Ps this morning are trading up +2.90 points. The US stock market yesterday closed mixed after Hewlett-Packard cut its sales forecast and Apr US housing starts unexpectedly fell, which dampened economic optimism: Dow Jones -0.55%, S&P 500 -0.04%, Nasdaq Composite +0.03%. The Dow fell to a 3-1/2 week low and the S&P 500 and the Nasdaq slid to 4-week lows. Bearish factors included (1) weakness in technology stocks after Hewlett-Packard, the biggest personal-computer maker, slumped when it lowered its sales forecast and its CEO told top executives to brace for "another tough quarter," (2) the slide in homebuilders after the unexpected decline in Apr US housing starts and building permits (housing starts -10.6% to 523,000 versus expectations of +3.5% to 568,000 and building permits -4.0% to 551,000 versus expectations of +0.9% to 590,000), (3) the unexpected stalling in Apr industrial production (unchanged versus expectations of +0.4%), and (4) the unexpected decline in Apr capacity utilization (-0.1 to 76.9% versus expectations of +0.2 to 77.6%).
• Bullish factors for stocks included (1) reduced European sovereign-debt concerns after credit-default swaps to insure European government debt fell to a 5-week low, (2) a late-day rally in financial stocks after JPMorgan Chase CEO Dimon said that banks are increasing lending, and (3) the decline in the 10-year T-note yield to a 5-1/4 month low of 3.096%.
• Dell (DELL) gained 5.8% in pre-market trading after the company late yesterday reported Q1 income of 49 cents a share, better than analysts' estimates of 43 cents and said it was able to withstand a slump in consumer demand by increased emphasis on business customers as it bolstered its expansion into corporate data centers.

Today's Market Focus

• June 10-year T-notes this morning are up +3 ticks. T-note prices yesterday rallied to a 5-1/4 month high after Apr US housing starts unexpectedly fell and industrial output stalled: TYM11 +6, FVM11 +3.5, EDU11 unchanged. The yield on the 10-year T-note fell to a 5-1/4 month low of 3.096%. Bullish factors included (1) the unexpected decline in Apr US housing starts and building permits (housing starts -10.6% to 523,000 versus expectations of +3.5% to 568,000 and building permits -4.0% to 551,000 versus expectations of +0.9% to 590,000), (2) the unexpected stalling in Apr industrial production (unchanged versus expectations of +0.4%), (3) the unexpected decline in Apr capacity utilization (-0.1 to 76.9% versus expectations of +0.2 to 77.6%), and (4) the action by the Fed to purchase $6.41 billion in Treasuries as part of its QE2 asset-purchase program. Bearish factors included (1) carry-over weakness from a drop in Gilts after Apr UK CPI climbed +4.5% y/y, stronger than expectations of +4.1% y/y and the fastest pace of increase in 2-1/2 years, and (2) reduced safe-haven demand for Treasuries after credit-default swaps to insure European government debt fell to a 5-week low on speculation that European leaders were making headway in solving the region?s sovereign-debt crisis.
• The dollar index this morning is lower with the dollar/yen -0.27 yen and the euro/dollar +0.06 cents. The dollar index yesterday finished slightly lower on weak US economic data and after European sovereign debt concerns eased: Dollar Index -0.071, USDJPY +0.625, EURUSD +0.00809. Bearish factors included (1) weaker-than-expected US economic data on Apr US housing starts and industrial production, which indicates economic weakness and is dollar negative, (2) reduced European debt concerns after credit-default swaps to insure European government debt fell to a 5-week low, and (3) euro supportive comments from ECB Executive Board member Tumpel-Gugerell who said interest rates should be consistent with economic activity, which suggests she sees room for further monetary tightening. Bullish factors included (1) weakness in the yen which fell to a 2-1/2 week low against the dollar after BOJ Governor Shirakawa said the Japanese economy is in a "very severe" state, which fueled speculation that monetary policy may be eased further, and (2) the weaker-than-expected May German ZEW economic sentiment which fell to its lowest level in 6 months and is euro negative.
• June crude oil prices this morning are trading up +$1.27 a barrel and June gasoline is +3.08 cents per gallon. Crude oil and gasoline prices yesterday closed lower for a second day after weaker-than-expected economic data stoked demand concerns while the opening of the Morganza floodway reduced concerns about flooding to refineries along the Mississippi River: CLM11 -$0.46, RBM11 -1.18. Jun crude slipped to a 1-1/2 week low and Jun gasoline fell to a 2-month low. Bearish factors included (1) the weaker-than-expected US economic data on Apr US housing starts and industrial production, which indicates the economy and fuel demand may slow, (2) reduced concerns that refineries along the Mississippi River delta will be forced to close after flood gates on the Morganza floodway in Louisiana were opened to reduce pressure on the flooded Mississippi River system, and (3) the outlook for increased supplies when the DOE releases its weekly inventory figures on Wed. Expectations for Wednesday's weekly DOE inventory report are for crude oil supplies to advance +1.7 million bbl, gasoline stockpiles to rise +1.0 million bbl, distillate inventories to increase +500,000 bbl and the refinery utilization rate to rise +0.4 to 82.1% of capacity.

Today's U.S. Earnings Reports Earnings reports (confirmed releases, sorted by mkt cap) HPQ-Hewlett-Packard (BEST earnings consensus $1.21), DE-Deere & Co. (2.06), TGT-Target (0.94), SPLS-Staples (0.32), LTD-Limited Brands (0.39), ANF-Abercrombie & Fitch (0.13), NTES-Netease.com (0.74), AAP-Advance Auto Parts (1.36), PETM-Petsmart (0.55), SNPS-Synopsys (0.45), EV-Eaton Vance (0.46), BJ-BJ's Wholesale Club (0.56), CHS-Chico's FAS (0.25), ALKS-Alkermes (-0.13), JACK-Jack in the Box (0.19).
Global Financial Calendar

Wednesday 5/18/11
United States
0700 ET	Weekly MBA mortgage applications, last market index +8.2% with purchase mortgage sub-index +6.7% and refinancing sub-index +9.0%.
1400 ET	Minutes of the Apr 26-27 FOMC meeting.
1900 ET	St. Louis Fed President James Bullard speaks to the Money Marketeers group in New York.
United Kingdom
0430 ET	BOE release minutes of the May 5 monetary policy meeting.
0430 ET	Apr UK jobless claims change expected unchanged, Mar +700. Apr claimant count rate expected 4.5%, Mar 4.5%.
0430 ET	Mar UK avg weekly earnings expected +2.0% 3-mo/year-over-year, Feb +2.0% 3-mo/year-over-year.
0430 ET	Mar UK avg weekly earnings ex bonus expected +2.2% 3-mo/year-over-year, Feb +2.2% 3-mo/year-over-year.
0430 ET	Mar UK ILO unemployment rate expected 7.8% (3-months), Apr 7.8% (3-months).
Euro-Zone
0300 ET	ECB Executive Board member Juergen Stark speaks in Athens at a conference titled ?In the aftermath of t he Global Crisis: and now what??
0300 ET	ECB Executive Board member Lorenzo Bini Smaghi speaks at a conference in Milan on ?Global Perspectives and Imbalances.?
0300 ET	EU Economic and Monetary Commissioner Olli Rehn, IMF Director Dominique Strauss-Kahn and German Finance Minister Wolfgang Schaeuble speak at the European Commission conference in Brussels.
0500 ET	Mar Euro-Zone construction output, Feb -0.7% m/m and +3.5% y/y.
Canada
0830 ET	Apr Canada leading indicators expected +0.5% m/m, Mar +0.8% m/m.
0830 ET	Mar Canada wholesale sales expected +1.5% m/m, Feb -0.6% m/m.
Japan
1950 ET	Q1 Japan GDP expected -0.5% q/q and -2.0% annualized, Q4 -0.3% q/q and -1.3% y/y. Q1 GDP deflator expected -1.9% y/y, Q4 -1.6% y/y.

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

Kroger - Barchart Chart of the Day

Barchart.coms Chart of the Day - Kroger Company (KR)

Barchart Research Team - Barchart.com - Tue May 17, 5:38PM CDT

Related Stocks

 KR - Kroger Company

Sym	Last	Chg	Pct
KR	25.31	+0.33	+1.32%

The "Chart of the Day" is Kroger Company (KR), which showed up on Tuesday's Barchart "Top 10 Performers" list with a 100% Buy for Today's Opinion and also on the new Barchart "52-week High" list. Kroger on Tuesday posted an outside day up, closing up 1.32% and posting a new 2-1/2 year high of $25.35. TrendSpotter has been Long on Kroger since May 10 at $24.49. In recent news on the stock, Kroger on March 3 reported fiscal Q4 EPS of 46 cents versus the consensus of 44 cents and announced a $1 billion stock repurchase program. Kroger Company, with a market cap of $15 billion, is one of the larger grocery retailers in the United States.


How we found the Chart of the Day:
We found the "Chart of the Day" by scanning the Barchart "Signals - Top 100 Stocks" list. The Top 100 Stocks ranks stocks by a combination of their overall opinion, signal strength and signal direction to come up with a list of the top 100 stocks by opinion. Each analytic used within the signals is rated by signal strength and direction. The strengths are allocated 10, 20, 30, 40 or 50 points; the directions are allocated 1, 2, 3, 4 or 5 points. This gives a maximum of 55 points per signal. The totals are added up depending on buy, sell and hold rating and ranked 1 to 100 for the top 100 bullish stocks and the top 100 bearish stocks. The signal strength and signal direction ratings are available from the advanced opinion pages. Signal strength and signal direction are independent of the signals rating.
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: 10% Buy
• Long-Term Indicators: 100% Buy
• 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

Winn-Dixie is a turnaround

Even in this weak market Winn-Dixie (WINN) continues to rise.  I must give a disclosure that I did work for Winn-Dixie while in high school.  I was a stock clerk at the Cordova Road location in Fort Lauderdale. That was over 45 years ago so I guess I'm no longer an insider.  That disclosure is part of why WINN is a turn around story (and its not because I'm no longer an employee).  They are located in some of the wealthier locations in the South East US and as such haven't been as price sensitive to rising food prices.  Their more affluent customers are able to continue their brand loyalty. The price continues to rise.

WINN DIXIE STORES (WINN) currently operates 520 stores in 22 DMAs throughout Florida, Alabama, Louisiana, Georgia, and Mississippi.They are one of the largest food retailers in the nation and ranks 347 on the FORTUNE 500' list.They has a competitive market share with prime convenient locations in some of the most attractive and fastest growing regions of the southeastern United States with high population density.Their vision is to be a leading neighborhood grocer in every market it serves.

Here are some of the turnaround factors you might want to consider:

Technical Factors:

• 100% Barchart technical buy signals
• Trend Spotter buy signal
• Trading above its 20, 50 and 100 day moving average
• 7 new highs and up 17.72% in the last month
• Relative Strength Index 66.80% and rising
• Priced around 8.04 with a 50 day moving average of 6.93

Fundamental Factors:

• Wall Street brokerage analysts have released 1 strong buy, 1 buy and 4 hold recommendations to their clients
• Although sales are expected to decrease by 5.50% this year they are projected to increase by 2.40% next year
• Grim earnings decreases of 176.90% this year are forecasted to turnaround and increase by 37.50% next year and 7.00% annually for the next 5 years.

General Investor Sentiment:

• Since this is a regional stock only 332 Motley Fool readers expressed an opinion on this stock
• Of those that did CAPS members voted 211 to 37 that the stock will beat the market
• The All Stars with more experience vote 71 to 13 for the same result.

Summary: Since emerging for bankruptcy in 2006 the company has struggled.  It is located in the wealthy South East and continues to increase both basket size and transaction count.  If this trend continues you can make some money here.  Better put Winn-Dixie (WINN) on your watch lists

Express Scripts - Prescription for success

One of the true growth stocks that is having upward price momentum even during this slight market contraction is Express Scripts (ESRX).  Even now as revealed on Barchart, while over 70% of stocks are trading below their 20 day moving average this company continues to hold above its 20, 50 and 100 day moving average.  They control costs, manage their margins extremely well and have an A financial stability rating.  I'd buy this stock on momentum alone.

Express Scripts, Inc. (ESRX) is one of the largest pharmacy benefit management companies in North America. Through facilities in the states and Canada, the company serves thousands of client groups, including managed care organizations, insurance carriers, third-party administrators, employers and union-sponsored benefit plans.

Factors you should consider:

Technical Factors:

• 80% Barchart short term technical buy signal
• Trend Spotter buy signal
• Trades above its 20, 50 and 100 day moving averages
• 12 new highs and up 8.55% in the last month
• Relative Strength Index 68.68% and rising
• Trades around 60.15 with a 50 day moving average of 55.71

Fundamental Factors:

• Wall Street brokerage analysts still have positive recommendations released
• Analysts have released 9 strong buy, 13 buy, 8 hold and only 1 negative report for their clients
• Sales are projected to increase by 1.90% this year and 3.40% next year
• Earnings are estimated to increase by 27.60% this year, 23.80% next year and 18.16% annually for the next 5 years
• Double digit earnings growth should always get your attention

General Investor Sentiment:

• On Motley Fool 888 readers have expressed an opinion
• CAPS members vote 644 to 41 for the stock to beat the market
• The more experienced All Stars agree 191 to 12

Summary:  While other stocks falter you should look for stocks that have financial strength and continues to fight the tide.  Add Express Scripts (ESRX) to your watch lists.

GLU Mobile -- deleted

This afternoon I deleted GLU Mobile (GLUU) from the Barchart Van Meerten Speculative portfolio for negative price momentum.

Technical Factors:

• 100% Barchart short term technical sell signal
• Trend Spotter sell signal
• Trading below its 20, 50 and 100 day moving averages
• 37.40% off its recent high
• Relative Strength Index 30.62% and falling

Markwest Energy sell signals

This afternoon I deleted Markwest Energy (MWE) from the Barchart Van Meerten New High portfolio for negative price momentum.

Technical Factors:

• 60% Barchart short term technical sell signal
• Trend Spotter sell signal
• Below its 20, 50 and 100 day moving averages
• 16.39% off its recent high
• Relative Strength Index 24.24% and falling

SIFY Technologies is a sell

This morning I deleted SIFY Technologies (SIFY) from the Barchart Van Meerten Speculative portfolio for negative price momentum.

Technical Factors:

• 40% Barchart short term technical sell signal
• Trend Spotter sell signal
• Below its 20 and 50 day moving averages
• 50.02% off its recent high
• Relative Strength Index 36.14% and falling

TREX is deleted

This morning I deleted Trex (TREX) form the Barchart Van Meerten New High portfolio for negative price momentum.

Technical Factors:

• 100% Barchart short term technical sell signals
• Trend Spotter sell signal
• Trading below its 20, 50 and 100 day moving averages
• 21.62% off its recent high
• Relative Strength Index 25.43% and falling

Ross Stores for bargains

While screening on Barchart for growth stocks hitting the most frequent new highs Ross Stores (ROST) was near the top of the list this morning.  As disposable income increases purse strings will loosen but shoppers will still look for bargains at off price stores like Ross.  Ross has been very good at inventory management and keeping the shelves loaded with new merchandise to encourage return shoppers.  The investors have been enticed with an aggressive stock buy back program.  I'd buy the stock on its price momentum alone.

Ross Stores, Inc. (ROST) operates a chain of off-price retail apparel and home accessories stores, which target value conscious men and women between the ages of 25 and 54 in middle-to-upper middle income households. The decisions of the company, from merchandising, purchasing and pricing, to the location of its stores, are aimed at this customer base. The company offers brand name and designer merchandise at low everyday prices, generally below regular prices of most department and specialty stores.

Factors to Consider

Technical Factors:

• 96% Barchart technical buy signal
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 14 new highs and up 15.56% in the last month
• Relative Strength Index 80.19% and climbing
• Trades around 82.64 with a 50 day moving average of 72.65

Fundamental Factors:

• Wall Street analysts have released 4 strong buy, 2 buy, 12 hold and 2 negative reports
• Sales are projected to increase by 7.10% this year and 7.30% next year
• Earnings forecasts are all double digit with an increase of 15.10% this year, 11.30% next year and 13.68% annually for the next 5 years

General Investor Sentiment:

• On Motley Fool 344 readers have expressed an opinion on this stock
• CAPS members voted 250 to 4 that the stock will beat the market
• The more experienced All Stars vote 83 to 7 for the same result

Summary:  Discount department store are still drawing in shoppers and stock buy back programs attract investors.  With a projected growth in sales and a double digit growth in earnings expected  Ross Stores (ROST) deserves a place on your watch lists.