Category: Trading Articles

Microsoft Weekly

Three strikes and you're out

In America's pastime, three strikes and you're out. So is the market out now having fanned at earnings on the big three large cap technology stocks?

In the past three trading sessions the big three have all struck out on earnings. Microsoft and Google were caught looking last Thursday afternoon and Apple last night. Looking at the charts, all three are likely to mull around at lower lows at best and head even lower at worst. Here's the pertinent charts.

For Microsoft, another 7% loss still looks to be in front of this stock's future as seen here.

Google may get off a little easier with another 5 to 7% decline but if that area doesn't hold, then this could get very ugly.

Google Weekly

Last night, Apple totally struck out on all counts as top and bottom lines missed and then targets were lowered even farther on next quarter’s estimates. A dividend hike and buyback did nothing for the stock as it plunged almost 8% after hours. To understand where Apple Inc. is headed, you have to move to the monthly chart where a 14% loss off last night's close looks to be in the cards and if that can't hold, $74 to $77 could be the next stop.

Apple Monthly

These three stocks are a huge problem for the technology index and the market as a whole for as technology goes, so goes the market and these three behemoths represent roughly 29% of the NDX 100 weighting

NDX 100 Weightings

Looking back to last year, the NDX 100 was what held the market up - it was the driving force that led the market higher making new yearly highs before it finally fell back to earth. Unlike last year, now the NDX 100 is likely to drag the broader indexes down rather than holding them up.

NDX 100 Weekly

So if technology can't lead this market higher ... what will? That's a good question and one this market will need to find an answer for because for the next three months, these three stocks are not going to do the trick. In this case, with three strikes, the NDX 100 really is out! The swing trades are not in the indexes but in commodities and have been for a while now as I have described repeated for weeks and even months now in my free nightly broadcast.

 

This article was originally published on MarketWatch on Apr 27, 2016 10:43 a.m. ET

  • Written by LA Little

Category: Trading Articles

JNUG- 125.9, 127.6 targets Update 5/1/16

Bull 3X levered junior gold JNUG is blasting higher- see the following 3month hourly chart.

Read more: JNUG- 125.9, 127.6 targets Update 5/1/16

  • Written by Gary Caumont

Category: Trading Articles

$SPX- 2084.74 target hit Update 5/1/16

We hit and confirmed a 2084.74 target yesterday- see the following 46day 15min chart.

Read more: $SPX- 2084.74 target hit Update 5/1/16

  • Written by Gary Caumont

Category: Trading Articles

$Compq- 4967.71 target goes begging? Update 5/1/16

A 4967.71 target remains to be hit- see the 47day 15min chart.

Read more: $Compq- 4967.71 target goes begging? Update 5/1/16

  • Written by Gary Caumont

Category: Trading Articles

What the dollar, euro and yen have in store for the stock market

Looking beyond equities and considering the underlying mover, it's the currencies that continue to be the story along with the central bankers that keep playing musical chairs with those instruments. As has been the case for years now, the way to improve a country's competitive advantage has been to depreciate the currency. It's today's version of the 1930's Smoot-Hawley Tariff Act - you simply devalue your currency and all the sudden you are competitive. Like almost everything else in today's smoke and mirrors world, it's only a short term kicker but it gets the central bankers a little farther down the economic road as they desperately wait and hope for increased growth prospects.

Read more: What the dollar, euro and yen have in store for the stock market

  • Written by LA Little