Google has bounce nicely off the 520 range. The big question is, will this bounce hold? The stock still remains under the 200 DMA and I need to see it trading above 575 before I consider the stock 'out of the woods'. That said - this is all about the short/intermediate term and entry points. Nothing has changed on my opinion of the company as a part of the portfolio over the long haul. This is a cornerstone company to build on over the next ten years.
Two blue Chip Staples in the DJIA both reported weak earnings this week and in both cases - rumors that these companies aren't 'hip' with young consumers are at the forefront of what ails them. I can't say if that's the case with Coke, but, McDonald's has certainly missed the boat on the entire move towards healthier food preferred by millennials. Can $MCD turn this around? Will the moat hold?
Jim Cramer called 'bottom in for the year', but I said I wasn't a believer until the general market eclipsed the 200 DMA. Well, that happened today, with conviction. The chart shows a big leap above the red-line in the sand. Does this mean the market will take out the 50 DMA as well? We shall see. If that happens, it's quite likely we will see new highs. Can earnings from Apple and other tech propel the market higher or will disappointments from companies like Coke and McDonald's slow the rally?
Conoco Phillips fell harshly over the last few weeks as the price of crude oil dropped. Now that oil has stopped its plummet, value buyers are stepping in and bidding COP up nicely over the last few trading sessions.
Apple reported earnings after the bell yesterday that smashed expectations, with a record number of iPhones and Macs sold in the quarter. The only blip on the report was a decline in the number of iPads sold. However, the release of the MUCH larger iPhone 6+ had to be expected to take sales from the iPad Mini. All in all, the quarter was a blowout and shares are up strongly today on solid volume.
Full Disclosure - I work for this company and have for over 13 years - so I do not give buy/sell recommendations on this stock and only post this chart for information purposes. Chili's released earnings and it appears the market is none too happy with the results. However, like the chart of Coke - shares had run up in recent weeks and a lot of this selling can be attributed to profit-taking in my opinion.
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