5 CHARTS THAT WILL HAVE YOU POUNDING YOUR CHEST WITH LUCIDITY IN THE WEEK AHEAD
click chart to enlarge
THE ROTTEN COMBINATION OF BIKINI CLAD BULLS AND GRUMPY OLD MEN
In an effort to keep readers apprised of the latest in a series of thoughts that would be impossible for me to categorize if it wasn't for this website, I would like to present a long-term look at the S&P 500. This will clarify exactly why I believe the resistance level we are facing (in the form of an important trajectory) is significant within the overall bull trend. Furthermore, we are banging heads with this resistance area as busloads of bikini clad bulls are taking great comfort in what seems to be the 2013 version of The Endless Summer. Unfortunately, this is not 1966 and there are no surfboards or exotic locales in the stock market. There are only grey buildings occupied by grumpy old men that want nothing more than to see you walking around with rabbit ears, a tattered blanket and a cup that jingles. Your money becomes their money the moment you sink your teeth into the belief that what is being said by the majority cannot be wrong. If we were rising against a wall of great worry as we were just two months ago when I was touting the benefits of bullish perfection I wouldn't be nearly as depressing a host. There is, however, reason to become defensive. Not bearish. Defensive. My personal version of defense started this past week with the initiation of a medium sized hedge. Here is a long-term look at the resistance level the S&P 500 is sitting on presently: click chart to...
5 CHARTS THAT WILL LEAVE YOU IN PEACE AND NOT IN PIECES DURING THE WEEK AHEAD
click chart to enlarge
FACEBOOK THE LOVER
AAPL was snarling, hissing and vomiting on investors in the days and weeks leading up to its earnings report. Much like the little girl in The Exorcist, AAPL did everything possible to warn those who chose to listen that it was possessed by a bearish spirit that was intent on harming any investors who came within spitting distance of the stock. From an angel to a demon in a matter of months. On the opposite end of the spectrum is FB. Once the poster child for maleficence, FB is one of the better performers in technology over the past few months. As the company prepares to announce earnings in the week ahead, the stock is lovingly starring investors in the eyes and blowing kisses in the wind. In other words, the setup from a price action perspective is outstanding in terms of structure, quality and participation. There are rare instances where the market gets things wrong. A stock will climb to high end of its range, only to be blindsided by an earnings report that floors investors. I don't think FB is due for such an anomalous event in the week ahead. The earnings should confirm the loving and rosy picture that price has been painting over the past few months. Here's a look at the upside possibility as we head into earnings this...
3 CHARTS THAT ARE RATHER BORING BUT NEVERTHELESS POINT TO HIGHER PRICES IN THE WEEK AHEAD
click chart to enlarge
4 CHARTS TELEGRAPHING EXACTLY HOW MUCH UPSIDE REMAINS IN THE MARKET
The market did manage to clear up some of the rain clouds overhead this week. Now that the Congressional circus has been put to bed, the market is free to focus on a consistently lubricated economic picture, as well as an earnings picture that may turn out to be brighter than expected. With that said, here are some of the upside targets in the weeks and months ahead: click chart to...
6 CHARTS DEMONSTRATING TECHNICAL PERFECTION FOR THE WEEK AHEAD
During last week's review, I spoke about a market that was demonstrating highly bullish behavior through the points at which the market was choosing to consolidate. We continued that trend of technical perfection this past week. A very high probability of a significant bullish resolution to these charts lies ahead. I believe that bullish resolution begins taking shape the week of December 17th through the end of the year, with the Dow ending somewhere in the vicinity of 13,400-13,500. click chart to...
THE FACEBOOK IPO IN 2012 AND THE YAHOO IPO IN 1996 CONTINUE THEIR STRANGE RELATIONSHIP
In 1996, I traded the YHOO IPO on the day it went public for clients. I remember the sentiment at the time of its IPO was very similar to FB: Unbounded skepticism, followed by valuation propositions that simply didn't add up, topped off with what seemed like a failed IPO at the time. In August of this year, after it was clear that the FB IPO was a complete debacle, I decided to do a comparison to the YHOO IPO based on the memory I had of the perceived failure in 1996. The correlation between the two was astounding. I followed up with another study tracking the correlation a month later. Again, astounding. Here is the third installment of that correlation study, comparing YHOO to FB six months into their respective IPOs along what it means for FB in the months ahead. click chart to...