Archive for the ‘Chart of the Day’ Category

GOOGL

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Stocks at New Highs

No surprise, investor bullishness is also near the highs:

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At the same time the seasonal pattern is usually less than positive:

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While overall the powerful economic expansion, which began in mid 2009, may soon begin to show its age:

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Hat tip Charlie Bilello/Ryan Detrick

 

 

Home Prices Continue To Rise

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The steady rise in home prices has consistently out paced income and inflation growth over the last few years.  Something’s gotta give. 

Hat tip Charlie Bilello

New Highs

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The big movers today, following blow out earnings reports: 

Caterpillar  +5.9%

McDonalds  +4.75%

Wal-Mart  +2.1%

JP Morgan  +1.7%

Not a negative.  Hat tip Charlie Billello

Crude

Long term the trend in Crude remains down.  However – this Daily Chart (each candle is a day) depicts a potential intermediate move higher.  Want to see 45 hold on a closing basis.

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SP 500

Click for larger view

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When Zero Discipline is a Good Thing

If you had invested $10,000 in Netflix on its IPO you would have $1,500,000.00 now.  But it wasn’t easy getting there.  You would have had to live through two separate draw downs of over 80%.  Which would have meant you had absolutely zero risk management in place.  Not a good long term strategy.

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Hat tip John Boorman

 

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Can You See 1987?

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Neither can I.  Great chart above, a very long term view of the S&P 500’s total returns.  I vividly remember being on the floor during the 1987 crash, standing just outside the S&P 500 futures pit at the Chicago Mercantile Exchange. If felt like stocks were going to zero. That monstrous October 19th flush(-22.6%)is barely a blip.

The details:  https://en.wikipedia.org/wiki/Black_Monday_(1987)

Quite A Streak

On Friday the Nasdaq Composite closed with a slight loss ending an impressive winning streak at 10 straight gains.

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What happens next?  Well, usually the tech heavy index continues higher.  Key bit:

On Thursday (July 20) the Nasdaq closed in the green for the tenth day in a row. This is significant, as history would suggest near-term strength could continue. In fact, since 1980, the Nasdaq has gained 2.6% on average during the month following a 10-day win streak versus an average monthly return of 1.0%. Looking at this same period, three months later things became more normal. Over the next several weeks though, the bulls could still be in charge.

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And, if you think the technology sector has become extremely overextended during the current nine year bull cycle, no need to worry based on inflation adjusted data:

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Hat tip LPL Research/Ryan Detrick

 

 

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