Tag: Chart of the DaySort
Despite Uptick, Unemployment Rate Still Trending Lower
I have been seeing numerous articles this week on how the S&P 500′s PE ratio is at a level not seen since the 90′s. Many investors are taking this as a sign to get bullish on stock again. However, cyclical bear markets tend to bottom when PE ration are much lower than they are now.
Several breaks in key trendlines have Qualcomm creating a new downtrend. This chart is great for examining how the support line once broken become resistance. We see that characteristic a few days ago when the tail touches $63.70. Then as it gained momentum it blew through $60.50. It should find some support soon, then rally and if it is in a true down it should pop up to $60.50 and then hit resistance and drop again.
Chart of The Day: Barclays 20+ Year Treasury Bond Fund (TLT)
Dicks is in the late stages of a cup and handle pattern and is close to a break out. It was in a sustained uptrend and then pulled back 14%, a nice pull back percentage for a cup and handle formation. It has annual EPS growth rate of 28% and last quarter sales were up 15%. It may just need to pull back to form a proper handle and if that happens over the next 2 weeks Dicks could be ready to take off going into the fall, winter, and holiday shopping seasons.
Altria has been a strong performer this year up 22% over the S&P 10%. It continues to be a strong buy on most analyst and investors radars. The stock has formed 2 bases in the last 6 months and each has resulted in a $5 move.
Well its coming out of a base again and it is in a prime positon to be a short squeeze candidate. The short interest ratio is at 6.6 the highest it has been in 2 years. If the stock continues on the same path its been on its could pop as shorts start to cover.
Looking at weekly chart of Blue Nile is like looking at large slide. The stock just keeps dropping. Technically it keeps rallying into sell-offs and then when you think it found support it just drops through the floor.
The numbers aren't much better for NILE. Its sales growth rate over the last 3 years has been pretty tepid at 6.5% range and earnings this quarter are down year of year 61% from last year. So with little fundementally good about the stock and the technicals pointing the same way its best to say that this stock one to avoid.