Monthly Archives: July 2014

Markets displayed some resilience Tuesday with benchmarks finishing off session lows, but with the Dow outperforming the Nasdaq and S&P 500 for a third consecutive day, one has to wonder if perhaps some risk is being taken off the table in favor of the old dodgy, defensive blue chips. The Nasdaq, which has been weak relatively speaking since making a nice charge of the past few months to hit break even on a YTD basis with the S&P 500, led the way lower today closing down .5%. It did make a decent move off intraday lows of more than 1% right at noon time. Financials were among the best performers Tuesday as C handed off the ball after their nice report Monday (it ran up another 2% Tuesday and may be finally looking to leave its 200 day SMA behind) to JPM and GS. JPM rose 3.6% today after a well received earnings release. It is carving out a cup base with a potential trigger of 61.58, the intraweek high made back during the week ending 3/28 (breakout there would put name at more than decade old highs). There were 3 very tight, bullish weekly closes all within 36 cents of each other. GS gained just more than 1% and not surprisingly net resistance at the round 170 figure. Bearish moves of the day award has to go to KORS which lost 7.3% Tuesday a day after slipping below its 200 day SMA, usually a red flag. Biotechs were hit today as well as the IBB recorded its third 2% plus loss in the last 7 sessions, all in very strong trade. The round 250 handle is tenuously holding for now.

Markets jumped out of the gate and impressively held on to gains throughout the day. The Nasdaq rose .6% with the S&P 500 up .5%. The Dow which we rarely pay attention too rose .7% on the back of V taking out the round 220 handle jumping 4 handles. Remember it is a price weighted index, therefore the better the higher priced stocks do, the stronger the impact on the index. Merger Monday and well received earnings reports helped the benchmarks achieve decent gains. ACM announced it will purchase URS, and both jumped handsomely with ACM higher by 10% and URS by 12%. URS had flew higher by almost 12% the week ending 7/4 and was up huge Friday before reversing. Things that make you go hmmmmm. C gapped up 3% but met stiff resistance at its 200 day SMA which occurred also in February, March and June. Tomorrow we hear from both JPM and GS. If you are a bull, there are some things to like as the utilities continue to lag. Today as a group they fell .7%. To see former best of breed names in the group like FE fall 2% today, and now in bear market mode down 20% from recent highs, it makes you wonder if risk on is here to stay. DYN was lower by almost 6% Monday and has now declined more than 18% from its most recent 52 week high. Getting back to the merger news energy leader WLL will acquire KOG, and the acquirer rose more than the aquiree as WLL ramped up almost 8%, while KOG rose almost 5%.

Each week at ChartSmarter we like to bring to a little insight into what we do on a daily basis. We have been at it for more than 4 years and we love doing it. Each night we detail 10 of our favorite ideas, both long and short, for the next days session. We do NOT have a chat room, nor are we active “tweeters”. We like our business growing by word of mouth. Here are some recent examples of our work. Wishing everyone a fantastic 2014, and anyone who would like a full copy of the Monday Game Plan (7/14/14) email me at chartsmarterblog@gmail.com.

Markets ended the week Friday on a lukewarm note going out on highs for the session. Mild morning losses were overcome and the Nasdaq finished higher by .44% and the S&P 500 by .15%. For the week the Nasdaq fell 1.6%, and lost ground for only the second time in nine weeks. The S&P 500 fell for the third time in the last five weeks, but did manage to outperform the Nasdaq dropping just .9%. The S&P 500 is now higher by 6.4% YTD, compared to the Nasdaq's 5.7% advance. Next week will be a busy week with earnings, which can be a volatile for the markets overall. Reports from "old tech" names like YHOO EBAY and INTC, along with important financial names like C GS and JPM should have a big say to where markets will look to move toward going into the summer doldrums. Energy which has been a robust group in 2014 was the hardest hit Friday. It is way to early to think this sector will falter, and rotation is always a good thing. But their were some big losers this week with RRC falling for a 5th consecutive week, dropping 13% in that timeframe. It sliced its 200 day SMA for the first time in 2014 on Thursday. A promising IPO RICE is also on a 5 week losing streak, demonstrating relative weakness long before mild softness this week. It fell almost 20% in the last 5 weeks alone. The solar names were hit pretty good as well with the likes of SCTY CSIQ FSLR all falling between 8-9% this week. Are they the canaries in the coal mine, that the sun may be setting on the markets for the short term, pun intended?

Each week at ChartSmarter we like to bring to a little insight into what we do on a daily basis. We have been at it for more than 4 years and we love doing it. Each night we detail 10 of our favorite ideas, both long and short, for the next days session. We do NOT have a chat room, nor are we active “tweeters”. We like our business growing by word of mouth. Here are some recent examples of our work.