On Friday, Infosys leaped higher after reporting earnings and raising its guidance for the year. Today the stock continued its rise. Even after this big move up, the firm is still rated "undervalued" by S&P Capital IQ. I think Infosys will remain strong for the next few months.
AVROBIO got a good pop today from very positive Phase 2 clinical trial results from its kidney drug. Unquestionably the news was good; the drug shows strong efficacy and no adverse events. However, this was only a Phase 2 trial so there's a long way still to go in the approval process. Meanwhile, the company is losing money and is rated as an overvalued and...
Investors bought the hype surrounding SOLY's clinical trial results, and today they sold the news. SOLY fell nearly 14% despite better-than-expected results in its cellulite treatment trial. Looking at the volume profile, I think SOLY may continue to fall to the 14.00-14.50 range, and then rebound upward from there. I wouldn't enter any earlier than that.
Stitch Fix is at support from a high-volume node on the volume profile and from its 50-day moving average. It also has some RSI support around 38. The stock just got some big analyst upgrades from Zacks and Goldman, which could serve as upside catalysts. The Internet retail sector is currently outperforming the S&P 500. S&P Capital IQ rates Stitch Fix as...
According to ValuEngine, one of the better analytics firms, oils and energy are the most undervalued sector right now. VE estimates that this sector is undervalued by about 32%. Meanwhile, crude oil is in an uptrend. OPEC is looking at supply cuts, geopolitical tensions with Iran are heating up, and US crude oil inventory just posted another large supply draw....
Small caps usually underperform the S&P 500, but they go through spurts of strong outperformance. They're currently in a very mature downtrend, but I'm seeing bullish divergences on RSI and MACD. I think they're looking pretty ripe for a surge. The next move above the 50-day MA could initiate a month or so of strong small cap performance.
Hibbett Sports took a pretty decisive jump after touching its next support level the other day. Hibbett's had a bunch of recent analyst upgrades, and on Friday a single trader bought a huge number of July calls (79K shares) with a price target of 18.65 or better. Having said all that, Recognia's Elliott Wave analysis of Hibbett suggests it will keep heading...
The biotech sector fell today news that Donald Trump intends to sign an executive order demanding that pharmaceutical companies give the US government "favored nation" prices. The news may not be as bad as it sounds, because Trump is apparently only launching a pilot program that will effect a small number of drugs. However, it's hard to predict the market's...
The JETS airline ETF has been soaring lately on upward guidance revisions from Jet Blue, Alaska Airlines, and Delta Airlines. It is above its MACD signal line on both its daily and weekly charts.H owever, the ETF is approaching historical resistance at 31.50, and rising crude prices mean that the airlines may take a hit from fuel costs and may not achieve their...
According to ValuEngine, one of the better analytics firms, oils and energy are the most undervalued sector right now. VE estimates that this sector is undervalued by about 32%. Meanwhile, crude oil is in an uptrend. OPEC is looking at supply cuts, geopolitical tensions with Iran are heating up, and US crude oil inventory just posted another large supply draw. In...
The Fed signaled a rate cut yesterday, which should be good for gold, except that the market has been pricing in a .5% interest rate cut, and we're likely to only get .25%. This morning the CPI numbers indicated higher-than-expected inflation, which should be good for gold, except that investors are afraid the better-than-expected inflation will prevent the Fed...
The real estate sector made an upward cross of its MACD on the daily chart yesterday and appears headed toward the top of its parallel channel with good momentum. This sector is rated "market weight" by the analytics firms. Since the EWRE equal weight real estate fund got its start in 2015, it has modestly outperformed the S&P 500. However, the sector faces...
The consumer discretionary (i.e. retail) sector has made a bullish MACD cross on its weekly chart. It's also above signal line on the daily chart. This suggests the sector is entering a new medium-term uptrend. Now should be a good time to buy and hold the sector.
The Invesco equal weight consumer staples fund made a bullish MACD cross today on the daily chart. It's also above signal on the weekly chart, so this cross should have some legs. Consumer staples are a counter-cyclical sector, so they tend to do well as the economy heads toward recession.
Netflix has been stuck in a horizaontal parallel channel. Indicators look mostly good, but momentum is flagging as it approaches the top of its channel. It should continue upward if it breaks 385.91 on volume.
They say it's really hard to beat the S&P 500. I really don't think so. This chart doesn't show the performance of the semiconductor sector. It shows the *difference* between the semiconductor sector's performance and the performance of the S&P 500. This sector has consistently outperformed, even this year, when the sector faced major headwinds from flagging...
Normally I'd be suspicious of an uptrend as long-term as the one that SMG has been in, but back on June 5 it revised its guidance upward, which should help sustain the uptrend. I expect a breakout above resistance sometime soon.
Nearly every single sector in the entire market is either overbought or down-trending right now, with two exceptions. Consumer staples and utilities are both climbing out of oversold territory and should gain Friday while the rest of the market pulls back.