Thursday Morning Market Thoughts
Yesterday's trading action was bullish, period. Coming into yesterday morning, the market still felt heavy despite the intraday reversal on Tuesday. As the morning unfolded however something took the fear level out and markets pushed higher. Financials performed again and some of the high-beta names like AAPL and AMZN resumed their bounce higher. We […]
Panera Bread and Starbucks Ready For Selling Pressure?
If stocks start slumbering into a summer lull soon, it is likely that near-term extended sectors such as Consumer Discretionary stocks fall the hardest on a relative basis. Financials and Energy may fall less as discussed here. As such, we scoured the Consumer Discretionary stocks and found that Panera Bread (PNRA) and Starbucks (SBUX) could […]
Today’s Morning Market Video is uploaded and can be watched here:
http://steadytrader.wpengine.com/video-2/video-may-2011/
Wednesday Morning Market Thoughts
Yesterday's intraday reversal at $1318.50 in the S&P 500 lifted the index so that it could close above the 50 day moving average. The 50 day moving average has not been well respected as of late, which is why we believe an area around $1300 would serve as better support for a bounce. Nevertheless the […]
Financials Ready For A Bounce Higher?
It's no secret, the financial sector has been underperforming the broader market for the past three months. As the financials outperformed the market over the past two days however, and also developed bullish candlestick formations I thought it would be worth a closer look at where they stand. Starting with the popular XLF financial sector […]
What is the Russell 2000 Telling Us?
You Say ‘Home’ I Say ‘Depot’
This morning Home Depot served up its latest earnings release and upped its full year profit forecast. Sales however were down…, expenses as well. Either way, the stock is up around 1.50% as of this writing and again touching on the critical $18 resistance area. We remain long a core Bucket 3 holding of HD […]
Tuesday Morning Thoughts – Heavy Tape
The tape is feeling heavy, no doubt about it. We touched on it in the weekly newsletter and all day yesterday. Yesterday we saw some rotation into the financials and out of technology, although by the end of the day the financials too closed near the lows of the session. Yesterday we started the hedging […]
Russell 2000 Broke Below 8 Month Uptrend
Note yesterday the Russell 2000 broke below the uptrend line in place since last September and also broke below the 50 day moving average (yellow line). Just something to keep in mind.
Heads Up On Starbucks!
As we mentioned here yesterday, SBUX is displaying a nice narrowing trading range, also know as a bullish pennant. The pattern usually resolves to the upside, but should it break to the downside could lead to a quick and violent move. As of this writing the stock is just dropping out of the formation to […]