As I mentioned in my post last year “the Santa Claus rally is the rise in stock prices in the month of December and is usually seen on December 26 to December 31 in most stock markets worldwide. However, it doesn’t happen at the exact dates mentioned but yes, it usually takes place after Christmas day and before New Year’s eve. [Read more...]
Hello Santa Claus Rally!
A Technical Look On The Dow Jones Industrial Average (DJIA)
Happy Halloween everyone! I don’t want to scare you or anything but it seems that there could be another blood bath in the US market at least from a technical perspective. Let’s now take a look at the Dow Jones Industrial Average (DJIA). [Read more...]
More Downside Seen In The Dow Jones Industrial Average (^DJI)?
Could the Dow Jones Industrial Average (^DJI) continue its descent? [Read more...]
DOWn Jones: Where To Now?
The Dow Jones Industrial Average has been a major disappointment for investors worldwide as it virtually erased its gains for the whole year and more in a span of just 4 weeks. Many are now scared that index could once again fall into a bear market but will it? [Read more...]
More Downside Seen In Hewlett-Packard Company (HPQ)
Chart-wise, Hewlett-Packard Company or HPQ in the New York Stock Exchange could be on the verge of [Read more...]
Dow Jones Industrial Average (^DJI) Technical Outlook
The Dow Jones Industrial Average (^DJI) broke down from its [Read more...]
How About Hershey’s (HSY) For Valentine’s Day?
Happy Valentine’s Day everyone! I know you guys want to [Read more...]
Violent Clashes In Egypt Rocked The Dow And The Euro
The US stock market dropped sharply last Friday as violent clashes in Egypt rocked the global financial markets. [Read more...]
American Express (AXP) Keeps You Shopping
Looks like heavy promotional activity like big discounts spurred shopping traffic last year and many people have been using credit cards. I’m most likely sure you’re one of them my friend! The more [Read more...]
The January Effect On The Dow Jones Industrial Average
Happy New Year everyone!!! The Santa Clause Rally gave the Dow Jones Industrial Average (^DJI) a decent rise for the final month of 2010. From 11,007.30 on December 1st, the ^DJI ended the month up by 570.20 points to [Read more...]
Mc Donald’s Stocks Looking To Break Its All-time High!
Hello guys! My stock pick for the day is the world’s largest hamburger fast food chain, Mc Donald’s or MCD in the New York Stock Exchange. It has been more than a month since I last posted my technical analysis on Mc Donald’s [Read more...]
A Good Run For The UNP Stocks!
Hello guys! It’s been a good run for the stocks of Union Pacific Corporation or UNP in the New York Stock Exchange since I mentioned that it had broken out from the ascending triangle formation last September 6 (could be a rectangle as well and kindly check this to see that post). I also posted the analysis of this stock pick of mine here in LaidTrades.com when it was still forming the bullish area pattern and could breakout soon (kindly check this). Anyway, the stocks’ ascent was most likely propelled by the 2010 3rd quarter net income of [Read more...]
Stocks Dropped By 99%!!!
Hello guys! Ambac Financial Group Inc. or ABK in the New York Stock Exchange filed for chapter 11 bankruptcy after failing to raise additional capital for the company. By the way, they are primarily a holding company whose subsidiaries are involved in financial guaranteeing. They made it through the 2007-2009 financial crisis but [Read more...]
Is The US Market Bullish?
Hello financial market friends! I have here the update on my analysis on the Dow Jones Industrial Average (^DJI). This index is looking good, well at least based on its chart. The last time I mentioned about this was last October 11 during the Columbus day, kindly check this post. Also, if you want to check the one last September 22, it’s in this post. Earlier, the Fed planned to pump $600 billion into the financial system to stimulate the economy in large part by lowering mortgage and other interest rates. This could be good for the US stocks and bonds. However, it won’t be favorable for the US currency as US Dollars could turn out flooding the market. The report prompted different currencies to strengthen against the weakening US Dollar (here’s the analysis). For example, 1.00 Australian Dollar is now equal to 1.008 US Dollar when they were just at parity the other day (kindly see this post). On a side not, the Federal Funds rate was decided to be held at 0.25% which they have been doing lately and will be continuing to do until it’s sure that the US economy is growing. Although, this raises inflation concerns to other analysts. The market turned out to be extremely volatile during the Fed rate decision and the FOMC statement.
Chart-wise, my outlook on the Dow Jones Industrial Average, which is one of the US market benchmarks, could be bullish. As for my technical analysis, I spotted this 2-year cup and handle formation. By the way, a cup and handle formation is naturally bullish, it could be a reversal or a continuation pattern as well. The only way to find out if the pattern is indeed a cup and handle if the index moves past above the neckline. If it does, it could rise and find some selling pressure at the next resistance around the 12,000.00 psychological level. Furthermore, if that marker gets cleared out, the next resistance it could aim for is around the 13,000.00 area. On the opposite note, in case the ^DJI fails to resume its ascend, the significant support could be the 11,000.00 psychological level. If that fails to hold the index from further declining, the next support could be the 19-month uptrend.
Mc Donald’s Earnings Lifted Its Stocks To An All Time High!
Hello ladies and gents! Here’s my update on the world’s largest hamburger fast food chain. Yesterday, Mc Donald’s Corporation reported a jump in their net income for the 3rd quarter of 2010. Earnings were $1.29 a share, up by 12% year to year. Solid margins and a 4% increase in overall sales maximized the profits (probably because of the happy meals lol =). On the other hand, the US market over all was terrific. The US unemployment claims dropped by 23k to 452k. This data signals a recovering economy. Positive earnings result from Amazon, Caterpillar and American Express played a major role in brining the market higher and propelled most stocks to climb. Also, the Dow Jones Industrial Average was at an all-time high since May of this year.
In my technical analysis, the Mc Donald’s stocks tapped the 7-year ascending channel’s resistance yesterday. The all-time high that I mentioned in my previous Mc Donald’s post during the start of this month (kindly check this) has been breached and a new one at $79.48 was set. If the stocks successfully break above that level, the next resistance that it could aim for is $85 or even the $90 psychological resistance. Personally, the 7-year ascending channel looks pretty tough and won’t easily break unless the market’s very bullish or there is a good chart setup. If the stocks bounce off the resistance and drop, the significant support could be the 14-month uptrend. If that trend doesn’t hold the stocks from further declining, the next marker could be the 7-year ascending channel’s support. Above all, I’m still bullish on Mc Donald’s as long as the uptrend remains intact.
Shares of HP to Go North Bound?
Good day stock market lads! Here’s a technical update on the shares of Hewlett-Packard Company (HP). HP’s shares or HPQ as they are traded in the New York Stock Exchange appear to be bound for a move north after declining to a low of just below $38.00 during the last week of August. After finding some support at the $38.00 level, it then rallied and moved on to form whats appears to be a cup and handle pattern. As some of you might know, such formation usually indicates a likely bullish reversal. Therefore, if and when HPQ is able to make a move past the neckline around $43.00, HP’s shares would more likely hit $48.00 or even $49.00. A failure to break the neckline, on the other hand, could send the company’s stocks back to its low at $48.00.
Hewlett-Packard Company, by the way, is a US-based multinational IT corporation. The company specializes in both hardware and software computer development and manufacturing. Its line of products include personal computers and notebooks. In August 6, its CEO, Mark Hurd, resigned from his office amid claim of sexual harassment by actress Jodie Fisher. While he was not found guilty of the said claim, several expense-irregularities were found during the company’s investigation. His resignation then led to a broad-based selling of the stock (represented by the long red candle on August 6).
Coca-Cola Nets!
Hello people! The Coca-Cola Company, one of the largest producers of carbonated soft drinks which is sold to more than 200 countries around the globe, posted a 2010 3rd quarter net income of 2.1 billion dollars which is up by 1.9% compared to the same period a year ago. Their world most famous soft-drink, Coca-Cola and other beverages boost their sales and brought home the favorable numbers. Its positive income report propelled the stocks (KO in the New York Stock Exchange) to move higher yesterday by 0.6% to $60.34.
In my technical analysis, the $59.45 resistance has been cleared out last week as the stocks ascend. By the way, if you want to check my last post on this, kindly click this link. Anyway, the next resistance the KO stocks could encounter is $61.90 then after that is $65.59. In any case the stocks fail to rise, the immediate support could be the 3-month uptrend. If that uptrend gets broken, the next support could be $57.22. If that support still fails to hold the price from further falling, a strong support could be the 18-month uptrend.
Google Soared By 11.19%! More To Go!
Happy weekend stock market enthusiasts! The US market or at least the NASDAQ ended this week with a bang after a magnificent performance by Google. In case you missed it, the shares of Google (GOOG) soared by 11.19% following a jump in the company’s net income. Net profit expanded by 32% to $2.17 billion, which translates to $6.72 per share, from $1.64 billion during the previous year. Given this figure, the web search giant is proved to be benefiting very well from its advertising channels which now includes display and mobile. Internet advertising, by the way, has risen by $6.15 billion or 11.8% in the US alone from a year earlier.
Technically, GOOG made a bullish gap soon after the company’s third quarter income result hit the news. In the process, the stock broke above its previous high near $600.00, converting this level to support. But given its present overbought condition, it may move sideways for awhile before resuming its journey towards its next target around $630.00. If it ranges, the support at $600.00 should keep it from falling. A break below, however, could send it back to the bottom of the gap. Nonetheless, the momentum in a breakaway gap is usually strong that the stock will most likely continue its move north.
Stocks Of American Express Bound To Drop?
Hello friends! The American Express Company also called as AMEX by credit card holders or AXP as listed in the New York Stock Exchange is most known for its charge and credit card products. AMEX is the main competitor of Visa and MasterCard credit cards. Anyway, its stock price is currently at $38.28 as it dropped 2% yesterday going against the 193.00 point gain of the Dow Jones Industrial Average. This could be caused by analysts’ expectation of a poor 3rd quarter earnings report coming out this October 21. In my technical analysis, the decline could further continue if the stocks breakdown from the neckline of what could be a head and shoulders setup. If it does, the price could head all the way lower until it finds some support around $34.26. If it further drops below that marker, the next support could be $31.69. If the breakdown doesn’t take place and the stocks decide to move higher, the significant resistance it could encounter is $43.93. If the stocks passes through above that level, the next resistance could be $45.68.
The US ADP Non-Farm Employment Change data, from 10k previously unexpectedly dropped to -39k when it was released a few moments earlier. This could have a negative impact on the investors/traders’ sentiments towards the US market as well as for American Express in the short term.
