While I do think the bulls are in control, I do not believe you should put new money to work here. You had a chance a few weeks back and if you missed it, just be patient.
Short term rating = HOLD
Long term rating = BUY (not current pricing however)
The Rally continued for Google last week and the stock approaches the all-time high of just over 700. Can the stock reach that level in the short term? If the stock can break above 700, I think it will most likely set new highs. It looks like the bulls are in control of this stock.
While I do think the bulls are in control, I do not believe you should put new money to work here. You had a chance a few weeks back and if you missed it, just be patient. Short term rating = HOLD Long term rating = BUY (not current pricing however)
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MCD hit all-time highs in Friday trading, extending a recent rally that has seen the stock outperform the general market. While the DOW Jones Industrial Average is still well below its all-time highs, MCD has roared higher. This in contrast with several articles stating the company is in trouble and is on its 'last legs'. Here is one particularly biased and hysterical article from Business Insider. It polls a mere 226 MCD stores out of 14,000 franchise units, but puts up a headline saying Brand is in 'Deep Depression and Facing it's final days.'
With this type of journalism, no wonder people think journalism is dead. It's all click-bait idiocy. The article is riddled with rhetoric and passed off the complaints of a few disgruntled franchise owners as evidence of a massive discord in the MCD system. Biased and un-sourced articles like this can make it hard to know what to do as an investor. How to find the facts inside the rhetorically biased slant? What's an investor to do now? I wouldn't be a new buyer at new highs. Anyone that follows this page knows I detest buying at 52 week/All-Time highs. I'd wait for a pullback before putting new money into the stock. Short term rating = HOLD Long term rating = HOLD Google is making a powerful push higher in the last few trading sessions and moving towards new highs. While there is a ways to go before setting said new highs at 713, Google has caught a constant bid lately and seems poised to do so.
That said, I do not advise buying here. Just two weeks ago you had an opportunity to invest below 650. If you missed that spot, best not to chase now. Sometimes you simply must accept you missed a stock and just put it on the watch list. Very often you *do* get another shot to buy in at a level you want if you exercise patience. No matter what - chasing a stock you missed at your buy targets is almost always a mistake. Short term rating = HOLD Long term rating = BUY (not at current prices) The Dow is in the green again today, marking the 8th straight trading session of gains if this holds into the close. The bears seem to have evaporated from the market and the bulls are charging to re-gain the moving averages. At this point it seems likely the DOW will indeed top that red line soon.
The only worry will be the earnings season that is just beginning. What will companies report? How will those reports impact stocks? With earnings season just underway - we are about to find out. The Nasdaq eked out a gain today, but it was enough to break through the 50 DMA - barely. The index now rests on top of the moving average. Many of the biggest names are in the same situation - at or near support lines. It seems the entire market is in a crucial zone. Can the bears stop the resurgence of the bulls? Will the upward momentum of the last six years resume?
I think the bears of the market are in a tough spot. The big sell-off was their chance to put a dent into this bull market - but the market doesn't seem to be shaken up from the sharp drop. The bulls seems poised to re-gain control of this market. The sell-off will likely be filed under the 'buy the dip' category before long. Watch the action tomorrow. Trouble for $BAC Stock - Not Joining the Market Rebound - #BankofAmerica Gets Death Cross Formation10/11/2015 Bank of America has not enjoyed a rebound from the crash lows as has the general market. And just recently, the 50 DMA crossed over the 200 DMA to the downside - giving Bank of America the dreaded 'death cross' chart formation. This generally means lower pricing in the short term.
What next for BAC and banks in general? It's no secret that bank stocks are being held prisoner by the waiting game on FED policy - when will the FED raise rates and how much will it impact bank earnings? I think this is a case of much ado about nothing. A small .25 basis point raise in interest rates isn't going to crash bank revenues - yet if you look at the charts, that's what investors are fearing with BAC - as the stock is well off its highs. I thing the prudent course is to do nothing at this moment in regards to BAC. If you own, hold. If you do not, this isn't a great time to enter the stock. For long investors, Ride out this storm. This too shall pass. Short term rating = HOLD Long term rating = HOLD The Nasdaq has rallied six of the last seven trading sessions, bringing it within a point of the 50 DMA. Next week should decide if this tech rebound is for real or the bears will retain their hold on the market. Watch the industry leaders such as Apple and Google for the 'tell' if things will hold going into earnings. This market is sitting right at resistance and any bad news could send stocks back down to test the recent lows.
Tesla stock isn't looking bullish, especially when you consider this complete week of red (all five trading days in the negative) happened during a positive week for stocks in general - with all the major indices rebounding. What to make of a stock going in the opposite direction of the market?
Tesla is sitting right on a major support line - 220 and how the stock behaves at this level will tell a lot about whether it's the bulls or the bears in control. Based on the chart, this stock looks as if it wants to go lower. Having five down days on a market up week doesn't bode well. I wouldn't be a buyer here. The weakness is likely to continue in the short term. Short term rating = HOLD Long term rating = HOLD The SPY moved higher again this week - breaking through the 50 DMA in a big way on Thursday and following through by holding the gains on Friday. The bulls seems to be back in control of the market. Was this sell-off all the bears had in them? Is this entire sell-off over?
Watch for the 200 DMA - see if it acts as resistance or if the market can truly send the bears back into hibernation. The Dow Jones Industrial Average has zoomed off the recent lows and rallied almost 1k trading points in the last six sessions, firmly above the 50 DMA and heading towards the 200. Is this market rally for real? Just like that is the selling over?
The bears appears to be defeated in the short term. If DJIA can recover the 200 DMA, I'd say new highs will follow. 18,300 - yes, it could happen. For now, Watch two levels on the way 'up' - 17,400 and 17,600 - one is an area of resistance and the other will be the 200 DMA. |