After markets go from one extreme to another, one technician sees an ‘inflection point’

Back on Christmas Eve, just three stocks of the Nasdaq 100 were trading above their 50-day moving average. “On top of that, you’re aligned with the 200-day moving average, 7,050 to 7,060. “The really one big economic thing I’m going to be looking at in Q2 is global PMI [Purchasing Managers’ Index]. If global PMI starts to stabilize, if all those factors start to finally show sequential growth, then yes, you have a legitimate case for further upside. Otherwise it’s very much a bear market rally a


Back on Christmas Eve, just three stocks of the Nasdaq 100 were trading above their 50-day moving average. “On top of that, you’re aligned with the 200-day moving average, 7,050 to 7,060. “The really one big economic thing I’m going to be looking at in Q2 is global PMI [Purchasing Managers’ Index]. If global PMI starts to stabilize, if all those factors start to finally show sequential growth, then yes, you have a legitimate case for further upside. Otherwise it’s very much a bear market rally a
After markets go from one extreme to another, one technician sees an ‘inflection point’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-07  Authors: keris lahiff, drew angerer, getty images, brendan mcdermid, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, extreme, schlossberg, global, technician, markets, moving, nasdaq, pmi, line, rally, point, trading, market, inflection, sees, average


After markets go from one extreme to another, one technician sees an 'inflection point'

Market swings from one extreme to another since December 2:52 PM ET Wed, 6 Feb 2019 | 04:41

Stocks have gone from one extreme to another.

Back on Christmas Eve, just three stocks of the Nasdaq 100 were trading above their 50-day moving average. Now, 93 are above the short-term trend line, illustrating a massive bounce off lows. That’s the biggest swing ever,

“Some of the sharpest rallies come in bear markets,” Blue Line Futures’s Bill Baruch said on CNBC’s “Trading Nation” on Wednesday. “Where we are right now, we are hitting a bit of an inflection point.”

The Nasdaq 100 broke above its 50-day moving average in mid-January, consolidated through last week, and is now breaking out again, says Baruch.

“On top of that, you’re aligned with the 200-day moving average, 7,050 to 7,060. There’s a tremendous amount of resistance up there. It tells me that this range, this rally has been extended and it’s time for it to come in,” said Baruch.

The Nasdaq 100, an index that includes Apple and Amazon, is trading just below its 200-day moving average. It has not traded firmly above that long-term trend line since October. However, it has rallied 19 percent off its December lows.

“What would convince me that this is not just a bear market rally would be a pullback of roughly 5 percent, something healthy where this market can come back a little bit and people don’t panic and then it can go back higher,” Baruch said. “I want to see that play out and then I think we can continue higher in a path similar to last year.”

Fundamentally, a global economic decline has to slow and then stabilize before BK Asset Management’s Boris Schlossberg gets bullish on the markets again.

“You’re seeing some pretty serious material slowdowns,” Schlossberg told “Trading Nation” on Wednesday. “The really one big economic thing I’m going to be looking at in Q2 is global PMI [Purchasing Managers’ Index]. If global PMI starts to stabilize, if all those factors start to finally show sequential growth, then yes, you have a legitimate case for further upside. Otherwise it’s very much a bear market rally and will peter out.”

Global economic growth slowed close to its lowest level in 2½ years in January, according to the JPMorgan Global Composite PMI. Both growth in manufacturing and services activity decelerated.

“They need to see at very minimum a stabilization in order for us to have some confidence that this rally is going to be real,” Schlossberg added.


Company: cnbc, Activity: cnbc, Date: 2019-02-07  Authors: keris lahiff, drew angerer, getty images, brendan mcdermid, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, extreme, schlossberg, global, technician, markets, moving, nasdaq, pmi, line, rally, point, trading, market, inflection, sees, average


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PayPal and two other tech stocks to buy amid sector breakout

One tech group is outperforming the rest of the market so far this year 3:53 PM ET Mon, 14 Jan 2019 | 03:28Software stocks are leading the tech sector, and broader market, in a strong start to 2019. Two software stocks illustrate how the group as a whole should continue its breakout, says Wald. “Also, mobile payments company PayPal, breaking through multimonth resistance in a difficult market tape — we think that is telling. The stock has surged 18 percent over that period in one of the best per


One tech group is outperforming the rest of the market so far this year 3:53 PM ET Mon, 14 Jan 2019 | 03:28Software stocks are leading the tech sector, and broader market, in a strong start to 2019. Two software stocks illustrate how the group as a whole should continue its breakout, says Wald. “Also, mobile payments company PayPal, breaking through multimonth resistance in a difficult market tape — we think that is telling. The stock has surged 18 percent over that period in one of the best per
PayPal and two other tech stocks to buy amid sector breakout Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-15  Authors: keris lahiff, justin sullivan, getty images, scott mlyn, michael nagle, bloomberg, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, company, amid, think, past, services, wald, tech, schlossberg, stocks, buy, market, software, sector, breakout, paypal, sp


PayPal and two other tech stocks to buy amid sector breakout

One tech group is outperforming the rest of the market so far this year 3:53 PM ET Mon, 14 Jan 2019 | 03:28

Software stocks are leading the tech sector, and broader market, in a strong start to 2019.

The XSW S&P software and services ETF has surged 7 percent in the past two weeks, better than the 3 percent gain on the XLK tech ETF and 4 percent advance on the S&P 500.

Ari Wald, head of technical analysis at Oppenheimer, says it makes sense to keep betting on the winners.

“We’re all about leadership as momentum investors,” Wald said on CNBC’s “Trading Nation” on Monday. “Our overall macro view [is] that a premium is going to continue to get placed on these high-growth companies in a low-growth world.”

Some of the segment’s biggest names, including Adobe, Salesforce.com, PayPal and Microsoft, trade at an elevated valuation compared with the rest of the market. Salesforce, for example, trades at 54 times forward earnings, well above the S&P 500’s 15 times multiple.

Two software stocks illustrate how the group as a whole should continue its breakout, says Wald.

“First, the software company Salesforce made a higher low in December, while the rest of the market was selling off and fell to that extreme bottom,” said Wald. “Now, as the market turns higher, you’re starting to see Salesforce come out of the consolidation pattern it’s been in.”

Salesforce has added 4.5 percent in the past three months as the S&P 500 tumbled 6 percent. The company is still 8 percent off its October record high.

“Also, mobile payments company PayPal, breaking through multimonth resistance in a difficult market tape — we think that is telling. That’s the type of relative strength that we think you want to own,” said Wald.

PayPal has had an even better stretch over the past three months. The stock has surged 18 percent over that period in one of the best performers of the S&P 1500 software and services segment.

Boris Schlossberg, managing director of FX strategy at BK Asset Management, says Google parent Alphabet is a better bet.

“I kind of want to stay defensive, and I really like Google,” Schlossberg said on “Trading Nation” on Monday. “It’s held pretty well in this very, very soggy tape.”

While Schlossberg says its advertising business continues to thrive, the real potential is in artificial intelligence.

“They are leaders in artificial intelligence,” he said. “Some analysts think there could be a $20 billion hardware business going forward for them in artificial intelligence. That’s a story that the market really isn’t fully appreciating.”

Alphabet has fallen 2.5 percent in the past three months. Its stock is in a correction, having fallen 17 percent from its record high set in August. Any drop of more than 10 percent from 52-week highs indicates correction territory. The company is now listed in the communications services S&P 500 sector rather than technology.


Company: cnbc, Activity: cnbc, Date: 2019-01-15  Authors: keris lahiff, justin sullivan, getty images, scott mlyn, michael nagle, bloomberg, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, company, amid, think, past, services, wald, tech, schlossberg, stocks, buy, market, software, sector, breakout, paypal, sp


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Buyer beware: Airline stocks are a ‘value trap,’ warns expert

Low Delta share prices may be value trap, says Boris Schlossberg 2:57 PM ET Mon, 14 Jan 2019 | 02:28Airline stocks can’t seem to catch a break. Delta reported fourth-quarter earnings on Tuesday that topped analyst estimates, but the stock dropped as much as 2 percent in premarket trading. American Airlines and Delta Air Lines both finished last week in the red after each carrier cut its guidance. Like Schlossberg, Oppenheimer’s Ari Wald wouldn’t be buying airline stocks here. The stock finished


Low Delta share prices may be value trap, says Boris Schlossberg 2:57 PM ET Mon, 14 Jan 2019 | 02:28Airline stocks can’t seem to catch a break. Delta reported fourth-quarter earnings on Tuesday that topped analyst estimates, but the stock dropped as much as 2 percent in premarket trading. American Airlines and Delta Air Lines both finished last week in the red after each carrier cut its guidance. Like Schlossberg, Oppenheimer’s Ari Wald wouldn’t be buying airline stocks here. The stock finished
Buyer beware: Airline stocks are a ‘value trap,’ warns expert Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-14  Authors: pippa stevens, justin sullivan, getty images, scott mlyn, michael nagle, bloomberg, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, trap, shutdown, value, stock, airline, buyer, airlines, stocks, schlossberg, going, delta, beware, warns, expert


Buyer beware: Airline stocks are a 'value trap,' warns expert

Low Delta share prices may be value trap, says Boris Schlossberg 2:57 PM ET Mon, 14 Jan 2019 | 02:28

Airline stocks can’t seem to catch a break. Delta reported fourth-quarter earnings on Tuesday that topped analyst estimates, but the stock dropped as much as 2 percent in premarket trading.

The NYSE Arca Airline Index, which tracks U.S. and international carriers, lagged the broader market in 2018 — dropping nearly 21 percent compared with the S&P’s decline of more than 6 percent — and some of the biggest airlines are warning that 2019 might bring more bad news.

American Airlines and Delta Air Lines both finished last week in the red after each carrier cut its guidance. This comes after American Airlines fell just more than 20 percent in December, its worst month on record. It’s plummeted more than 46 percent from its January 2018 high of $59.08.

Some investors may view the move lower as an opportunity for bargain hunting, but BK Asset Management’s Boris Schlossberg believes we haven’t yet seen the worst.

“It may be a value trap because as far as the market is concerned, the only thing they really care about is revenue per available seat mile, and those numbers have been going down,” he said Monday on CNBC’s “Trading Nation,” adding that “fares were down 2.6 percent in December.”

He believes that despite a drop in fuel costs, airlines’ inability to control pricing as well as a potential peak in demand will continue to pressure margins going forward.

He also noted that the partial government shutdown, which reached 25 days on Tuesday and is the longest shutdown on record, isn’t good news for airlines.

“Of course the shutdown is really not helping the airline industry … just the delays themselves are going to have a massive, massive ricochet effect through the whole industry,” he said. On Tuesday, Delta CEO Ed Bastian said the shutdown will cost the airline about $25 million in revenue this month as fewer government contractors and employees are traveling.

Like Schlossberg, Oppenheimer’s Ari Wald wouldn’t be buying airline stocks here. After examining the charts for Delta and United specifically, he isn’t convinced that either one is about to turn a corner or break out to the upside.

That said, he is watching one key level for DAL.

“Big support is $45. This is the multiyear low. We’ve bounced right from there. Positive above there, use that as your protective stop,” he said.

Shares of Delta slid nearly 2 percent Monday after Bank of America cut the name to a neutral rating based on a lack of upcoming positive catalysts. The firm also lowered its price target to $51.

The stock finished the day at $47.75, so it would need to fall another 5.7 percent to reach Wald’s $45 level.

— CNBC’s Leslie Josephs contributed reporting.


Company: cnbc, Activity: cnbc, Date: 2019-01-14  Authors: pippa stevens, justin sullivan, getty images, scott mlyn, michael nagle, bloomberg, kcna, thomas barwick getty images, source, lawrence mcdonald
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Caterpillar is not the way to play this US-China trade truce, Oppenheimer says

Caterpillar just got a big bump from easing trade tensions between the U.S. and China. Ari Wald, head of technical analysis at Oppenheimer, says this is not the stock to take advantage of the trade war truce. I just don’t think Caterpillar is the way to play it,” Wald told CNBC’s “Trading Nation” on Monday. “The second thing everybody is noticing, of course, is the U.S.-China trade relation tension that is easing right now,” said Schlossberg. “Both of those things have provided a very strong tai


Caterpillar just got a big bump from easing trade tensions between the U.S. and China. Ari Wald, head of technical analysis at Oppenheimer, says this is not the stock to take advantage of the trade war truce. I just don’t think Caterpillar is the way to play it,” Wald told CNBC’s “Trading Nation” on Monday. “The second thing everybody is noticing, of course, is the U.S.-China trade relation tension that is easing right now,” said Schlossberg. “Both of those things have provided a very strong tai
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Keywords: news, cnbc, companies, stock, right, truce, youre, play, way, uschina, oppenheimer, caterpillar, global, schlossberg, easing, lower, trade, wald


Caterpillar is not the way to play this US-China trade truce, Oppenheimer says

Caterpillar just got a big bump from easing trade tensions between the U.S. and China.

Shares of the industrial bellwether surged more than 2 percent to begin the week, wiping out some of its year-to-date losses. Its stock remains 12 percent lower for 2018.

Ari Wald, head of technical analysis at Oppenheimer, says this is not the stock to take advantage of the trade war truce.

The trade war cease-fire “should be good for the stock market. I just don’t think Caterpillar is the way to play it,” Wald told CNBC’s “Trading Nation” on Monday. “In general, we are cautious on capital goods stocks that are exposed to the global economy, and what we see as a decelerating macro backdrop.”

Caterpillar has been trending lower for much of the year, caught between trade headlines and fears of slowing global growth. The industrials giant is particularly sensitive to any drop in global economic activity.

“If you’re buying this stock you’re making the case that the global backdrop is bullish,” said Wald. “What we instead see is a stock rallying into very formidable resistance at around $142. This marks the stock’s … falling 200-day moving average as well as its Q1 lows.”

Caterpillar would need to rally another 2 percent to reach its resistance at $142.

Boris Schlossberg, managing director of FX strategy at BK Asset Management, is more bullish on the stock, naming two macro factors that could carry Caterpillar higher.

“The Fed seems to be easing its monetary path cycle, and therefore if it really isn’t going to hike rates as much as the market thinks in 2019, that’s positive for Caterpillar, which obviously has a lower cost of capital as a result of this,” Schlossberg told “Trading Nation” on Monday.

Federal Reserve Chair Jerome Powell last week eased concerns that the central bank would move too aggressively next year to raise interest rates. Investors see a more dovish Fed as less of an impediment to economic growth.

“The second thing everybody is noticing, of course, is the U.S.-China trade relation tension that is easing right now,” said Schlossberg.

The U.S. and China agreed over the weekend to a 90-day trade truce to hold tariffs at current levels. That three-month stretch allows them time to reach a more formal trade agreement.

“Both of those things have provided a very strong tailwind for the stock right now,” Schlossberg said. “If the dynamic for those things changes very quickly, the stock goes right back down, irrespective of its own internal fundamentals.”


Company: cnbc, Activity: cnbc, Date: 2018-12-04  Authors: keris lahiff, brendan mcdermid, getty images, loic venance, afp, monica almeida, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, stock, right, truce, youre, play, way, uschina, oppenheimer, caterpillar, global, schlossberg, easing, lower, trade, wald


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Under Armour is on a hot streak, and charts point to more upside

The athleisure retailer has rocketed 15 percent in the past three months and has advanced 65 percent this year. “The setup on Under Armour looks great right now on the charts,” Johnson said Friday on CNBC’s “Trading Nation.” As of Friday, Under Armour had short interest at 19 percent of its float, down from a peak of 36 percent in April. “I think it’s a great buy at this point fundamentally,” Schlossberg said on “Trading Nation” on Friday. Wells Fargo upgraded Under Armour to market perform from


The athleisure retailer has rocketed 15 percent in the past three months and has advanced 65 percent this year. “The setup on Under Armour looks great right now on the charts,” Johnson said Friday on CNBC’s “Trading Nation.” As of Friday, Under Armour had short interest at 19 percent of its float, down from a peak of 36 percent in April. “I think it’s a great buy at this point fundamentally,” Schlossberg said on “Trading Nation” on Friday. Wells Fargo upgraded Under Armour to market perform from
Under Armour is on a hot streak, and charts point to more upside Cached Page below :
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Keywords: news, cnbc, companies, hot, low, market, charts, streak, upside, point, trading, schlossberg, stock, nation, short, suggests, really, armour


Under Armour is on a hot streak, and charts point to more upside

Under Armour has done some heavy lifting in recent months.

The athleisure retailer has rocketed 15 percent in the past three months and has advanced 65 percent this year. Its shares are on track for their best annual increase since 2013.

Craig Johnson, chief market technician at Piper Jaffray, sees its stock scaling even higher highs.

“The setup on Under Armour looks great right now on the charts,” Johnson said Friday on CNBC’s “Trading Nation.” “We’ve got a longer-term kind of bottoming formation setting up here. Technicians will call this an inverted head-and-shoulders bottom and … it suggests a measured price objective up into the high-$30s.”

An inverted head-and-shoulders pattern — marked by a low, a lower low and a higher low — is a bullish signal that typically suggests the end of a downtrend. In Monday’s premarket, UA was at $24.20, up 1.3 percent. A move to at least $35 a share marks a 44 percent gain from that level.

Johnson also said declining short interest in the stock gives him confidence in the strength of the rally.

The “short-interest ratio, it’s been declining since March, so it’s not only the short covering here but there’s some real meaningful buying coming in this,” he said.

As of Friday, Under Armour had short interest at 19 percent of its float, down from a peak of 36 percent in April.

Boris Schlossberg, managing director of FX Strategy at BK Asset Management, is also a fan.

“I think it’s a great buy at this point fundamentally,” Schlossberg said on “Trading Nation” on Friday. “The stock is just doing a lot of things really positively, which is why you see almost everybody on Wall Street starting to really upgrade this stock and look for much better growth going forward.”

Wells Fargo upgraded Under Armour to market perform from underperform on Friday, arguing that its two years of choppy performance are over. Analysts have an average hold rating on the stock, according to FactSet.


Company: cnbc, Activity: cnbc, Date: 2018-12-03  Authors: keris lahiff, source, scott eells, bloomberg, getty images, burhaan kinu, hindustan times, kcna, thomas barwick getty images, lawrence mcdonald
Keywords: news, cnbc, companies, hot, low, market, charts, streak, upside, point, trading, schlossberg, stock, nation, short, suggests, really, armour


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A ‘perfect storm’ is brewing for chips stocks, and that may mean the worst is yet to come

The worst could still be ahead for the group, says Boris Schlossberg, managing director of FX strategy at BK Asset Management. “It’s a perfect storm for the semis at this point,” Schlossberg told CNBC’s “Trading Nation” on Monday. “You have a slowdown in China, you have a saturation of demand in the Western markets, you have a rising interest rate environment, and you have the U.S.-Chinese trade war tensions which are putting pressure on prices.” An escalating trade war between the world’s two l


The worst could still be ahead for the group, says Boris Schlossberg, managing director of FX strategy at BK Asset Management. “It’s a perfect storm for the semis at this point,” Schlossberg told CNBC’s “Trading Nation” on Monday. “You have a slowdown in China, you have a saturation of demand in the Western markets, you have a rising interest rate environment, and you have the U.S.-Chinese trade war tensions which are putting pressure on prices.” An escalating trade war between the world’s two l
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Company: cnbc, Activity: cnbc, Date: 2018-11-13  Authors: keris lahiff, david orrell, carlo allegri, bryan r smith, afp, getty images, pictures ltd, corbis, kcna, thomas barwick getty images
Keywords: news, cnbc, companies, trade, perfect, stocks, come, worst, chips, ohara, think, pause, brewing, mean, support, storm, smh, war, point, schlossberg


A 'perfect storm' is brewing for chips stocks, and that may mean the worst is yet to come

The worst could still be ahead for the group, says Boris Schlossberg, managing director of FX strategy at BK Asset Management.

“It’s a perfect storm for the semis at this point,” Schlossberg told CNBC’s “Trading Nation” on Monday. “You have a slowdown in China, you have a saturation of demand in the Western markets, you have a rising interest rate environment, and you have the U.S.-Chinese trade war tensions which are putting pressure on prices.”

An escalating trade war between the world’s two largest economies has triggered fears over supply-chain costs, while slowing iPhone demand has raised concern over peak growth in the smartphone industry. Semi stocks were awash with more losses on Monday after Apple supplier Lumentum warned of reduced shipments to a major customer.

“The general history of semis is they go from grossly overbought conditions to grossly oversold conditions, and I don’t think we’re anywhere near the capitulation point,” said Schlossberg. “I think there’s more to come to the downside before it finally washes out.”

The SMH semiconductor ETF has fallen 16 percent since August. A 12 percent drop last month marked its worst October performance ever.

JC O’Hara, chief market technician at MKM Partners, says the charts also point to more trouble ahead for the chips stocks.

“Coming into 2018, a pause was likely — that’s following two years of 35 percent gains, so a pause or consolidation was actually healthy — but as this pause continued to draw out as the year progressed, we started to lose technical strength,” O’Hara said.

The SMH began to ride its 40-week moving average over the summer before breaking sharply lower in September, a move that suggests a broken trend, O’Hara said. The ETF now needs to hold support level.

“We can point to some support at $86, which was those October lows, but a break below that and all bets are off,” said O’Hara.

The SMH still needs to drop another 6 percent before reaching support at $86. It has not traded at those levels in more than a year.


Company: cnbc, Activity: cnbc, Date: 2018-11-13  Authors: keris lahiff, david orrell, carlo allegri, bryan r smith, afp, getty images, pictures ltd, corbis, kcna, thomas barwick getty images
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In the hunt for yield, these Dow stocks could be investors’ best bets

And the biggest blue chip high-dividend stocks like Verizon, IBM, Exxon Mobil and Procter & Gamble are all in the green over the past three months. “One of our favorite charts is the chart of Verizon,” O’Hara said Tuesday on CNBC’s “Trading Nation.” “If you look at the total return, you actually see that bearish-to-bullish reversal, we saw the price broke out,” said O’Hara. The other buy in the group, according to Schlossberg, is Exxon Mobil, another Dow stock he likes for its high dividend. Ver


And the biggest blue chip high-dividend stocks like Verizon, IBM, Exxon Mobil and Procter & Gamble are all in the green over the past three months. “One of our favorite charts is the chart of Verizon,” O’Hara said Tuesday on CNBC’s “Trading Nation.” “If you look at the total return, you actually see that bearish-to-bullish reversal, we saw the price broke out,” said O’Hara. The other buy in the group, according to Schlossberg, is Exxon Mobil, another Dow stock he likes for its high dividend. Ver
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Keywords: news, cnbc, companies, market, stocks, schlossberg, bets, best, verizon, ohara, hunt, return, highs, mobil, yields, dow, total, yield, investors, exxon


In the hunt for yield, these Dow stocks could be investors' best bets

In the hunt for yield, these Dow stocks could be investors’ best bets 3:35 PM ET Tue, 9 Oct 2018 | 03:37

Rising rates are shaking the market to its core as bond yields held at their highest level in seven years, but an unexpected group of winners is emerging.

Bond proxies, often victim to rising rates, have held up surprisingly well. Sectors like consumer staples, utilities and real estate have been outperforming the broader market. And the biggest blue chip high-dividend stocks like Verizon, IBM, Exxon Mobil and Procter & Gamble are all in the green over the past three months.

One of those names looks primed for a breakout, said JC O’Hara, chief market technician at MKM Partners.

“One of our favorite charts is the chart of Verizon,” O’Hara said Tuesday on CNBC’s “Trading Nation.” “If we look at the recent price performance, we saw a bearish-to-bullish reversal here and to us that shows us that the bulls are back engaged in the stock.”

Dow stock Verizon tumbled 25 percent from its peak in mid-2016 to a trough in mid-2017. Its downward trend reversed itself from that July 2017 bottom and it has since rallied back to those 2016 highs, a gain of 30 percent.

On a total return basis, Verizon has also broken out above a key resistance level stretching back to those highs more than two years ago, said O’Hara.

“If you look at the total return, you actually see that bearish-to-bullish reversal, we saw the price broke out,” said O’Hara. “We have a great chart that’s breaking to new highs. That’s something that we like.”

Verizon broke above its 2016 peak on a total return basis earlier this year.

Verizon also finds a fan in Boris Schlossberg, managing director of FX strategy at BK Asset Management.

“Verizon is my favorite name among all those high yielders for a completely different reason — because of 5G,” Schlossberg said Tuesday on “Trading Nation.” The next generation of wireless networks, 5G, “could upend markets in gaming and broadcasting and Verizon is going to be the first player in that space.”

The other buy in the group, according to Schlossberg, is Exxon Mobil, another Dow stock he likes for its high dividend. He says the oil company should ride the energy wave as crude prices hold above more than $70 a barrel.

Verizon has a dividend yield of 4.4 percent, while Exxon Mobil yields 3.8 percent.


Company: cnbc, Activity: cnbc, Date: 2018-10-10  Authors: keris lahiff, andrew harrer, bloomberg, getty images, alex wong, michael nagle, david paul morris, kcna, thomas barwick getty images, source
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GE shares would need to hit this level to mark a bottom

The one-time Dow stock surged 7 percent after Chairman and CEO John Flannery was ousted to make way for former Danaher chief Larry Culp. Piper Jaffray chief market technician Craig Johnson says the stock still has to clear one key level before it hits bottom. GE shares last traded above $15 in mid-May. While the C-suite shuffle did cause the stock to rally, Johnson says the day’s moves had not yet altered the long-term trend. Culp was CEO and president of Danaher from 2000 to 2014, when acquisit


The one-time Dow stock surged 7 percent after Chairman and CEO John Flannery was ousted to make way for former Danaher chief Larry Culp. Piper Jaffray chief market technician Craig Johnson says the stock still has to clear one key level before it hits bottom. GE shares last traded above $15 in mid-May. While the C-suite shuffle did cause the stock to rally, Johnson says the day’s moves had not yet altered the long-term trend. Culp was CEO and president of Danaher from 2000 to 2014, when acquisit
GE shares would need to hit this level to mark a bottom Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-02  Authors: keris lahiff, mandel ngan, afp, getty images, michael nagle, bloomberg, sebastien bozon, odd anderson, ge renewable energy, kcna
Keywords: news, cnbc, companies, need, schlossberg, rally, ge, hit, ceo, johnson, trading, sort, management, change, mark, shares, level, stock


GE shares would need to hit this level to mark a bottom

Another shake-up at General Electric had shares flying on Monday.

The one-time Dow stock surged 7 percent after Chairman and CEO John Flannery was ousted to make way for former Danaher chief Larry Culp. In Tuesday’s premarket, it was up 2 percent at $12.34 a share.

Piper Jaffray chief market technician Craig Johnson says the stock still has to clear one key level before it hits bottom.

“It’s going to take a close above $15 to really make any sort of indication that a low has been set and that perhaps we’re going to see some sort of trend change start to unfold,” Johnson told CNBC’s “Trading Nation” on Monday.

GE shares last traded above $15 in mid-May. It would take a 24 percent rally to regain that level.

While the C-suite shuffle did cause the stock to rally, Johnson says the day’s moves had not yet altered the long-term trend.

“The new CEO coming in is probably the right move for the company, but if you strip aside this change in management, the stock is still making a series of lower lows and lower highs,” he said.

A years-long decline accelerated in 2018 as investors worried about GE’s restructuring plans. In addition, its power business struggled, and fears rose that its dividend would be cut. Its shares are down 31 percent this year.

Boris Schlossberg, managing director of FX strategy at BK Asset Management, is more optimistic a long-term turnaround is in the making after the change in leadership.

“Mr. Culp, who is coming in, is actually very well known as … a guy who brings in very accretive kind of deals, so he’s both a good trader and a very good manager,” Schlossberg said Monday on “Trading Nation.”

Culp was CEO and president of Danaher from 2000 to 2014, when acquisitions expanded its science and biotechnology operations.

“It’s very likely we could still drift back down to $10, but I think on a three- to five-year time basis as an investor it is an excellent opportunity because it is a still a pre-eminent industrial giant,” Schlossberg said.


Company: cnbc, Activity: cnbc, Date: 2018-10-02  Authors: keris lahiff, mandel ngan, afp, getty images, michael nagle, bloomberg, sebastien bozon, odd anderson, ge renewable energy, kcna
Keywords: news, cnbc, companies, need, schlossberg, rally, ge, hit, ceo, johnson, trading, sort, management, change, mark, shares, level, stock


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One group of stocks just hit all-time highs, and traders see more gains to come

As defense stocks hit all-time highs, is the run in these names just starting? 21 Hours Ago | 03:34Defense stocks just rocketed to all-time highs, and some strategists are betting on even more gains to come. The U.S. aerospace and defense ETF, the ITA, hit an all-time high on Wednesday, bringing its 2018 gains to 16 percent. “As a trader, you never ignore all-time highs. He likes Raytheon, in particular, as a standout beneficiary of the broader defense trend.


As defense stocks hit all-time highs, is the run in these names just starting? 21 Hours Ago | 03:34Defense stocks just rocketed to all-time highs, and some strategists are betting on even more gains to come. The U.S. aerospace and defense ETF, the ITA, hit an all-time high on Wednesday, bringing its 2018 gains to 16 percent. “As a trader, you never ignore all-time highs. He likes Raytheon, in particular, as a standout beneficiary of the broader defense trend.
One group of stocks just hit all-time highs, and traders see more gains to come Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-09-19  Authors: rebecca ungarino, thomas peter-pool, getty images news, getty images, ken cedeno, corbis, al seib, los angeles times, george frey, bloomberg
Keywords: news, cnbc, companies, raytheon, come, alltime, defense, trend, stocks, trading, schlossberg, gains, thats, hit, highs, group, maley, traders, week


One group of stocks just hit all-time highs, and traders see more gains to come

As defense stocks hit all-time highs, is the run in these names just starting? 21 Hours Ago | 03:34

Defense stocks just rocketed to all-time highs, and some strategists are betting on even more gains to come.

The U.S. aerospace and defense ETF, the ITA, hit an all-time high on Wednesday, bringing its 2018 gains to 16 percent. The ETF has gained 12 percent in just the last three months, driven in part by heavy defense spending.

The price action in the last week has been particularly notable, as names like Boeing, Raytheon, Lockheed Martin and L3 Technologies have outperformed the market.

“As a trader, you never ignore all-time highs. That’s usually a very, very strong bullish signal that suggests the market is feeling very positive about long-term trends,” Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management, said Tuesday on CNBC’s “Trading Nation.”

He likes Raytheon, in particular, as a standout beneficiary of the broader defense trend. The company is performing well on the bottom and top lines, Schlossberg said, and it’s been growing its dividend.

“For an investor who’s looking for long-term capital appreciation with dividend growth, I think this presents a very interesting trade in the defense sector,” Schlossberg said.

A technical analysis of Raytheon shows the stock has more room to run, according to Matt Maley, equity strategist at Miller Tabak.

“Over the summer, it broke above its multimonth trend line, so that’s positive. But more importantly, it had been bumping up against its 200-day moving average most of the summer, couldn’t break above it, and it finally has just in the last week or two,” Maley said on “Trading Nation.”

The broader group is starting to break out in a more substantial way than it had even just a few weeks ago. Lockheed Martin has seen a similar breakout on the chart, Maley said, though pointed out the stock is nearing an overbought condition.


Company: cnbc, Activity: cnbc, Date: 2018-09-19  Authors: rebecca ungarino, thomas peter-pool, getty images news, getty images, ken cedeno, corbis, al seib, los angeles times, george frey, bloomberg
Keywords: news, cnbc, companies, raytheon, come, alltime, defense, trend, stocks, trading, schlossberg, gains, thats, hit, highs, group, maley, traders, week


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One Dow stock is emerging as the unlikely winner in the trade war

One unlikely Dow stock is surging this month, even as the trade war looms 18 Hours Ago | 03:24As U.S.-China trade tensions escalate, one unlikely winner is emerging: Dow component Caterpillar. Shares of the industrial giant had fallen earlier this year on trade war fears, but they’ve rallied more than 7 percent this month, the best performer of all Dow stocks. “It’s right up to its 200-day moving average,” Matt Maley, equity strategist at Miller Tabak, said Tuesday on CNBC’s “Trading Nation.” Bo


One unlikely Dow stock is surging this month, even as the trade war looms 18 Hours Ago | 03:24As U.S.-China trade tensions escalate, one unlikely winner is emerging: Dow component Caterpillar. Shares of the industrial giant had fallen earlier this year on trade war fears, but they’ve rallied more than 7 percent this month, the best performer of all Dow stocks. “It’s right up to its 200-day moving average,” Matt Maley, equity strategist at Miller Tabak, said Tuesday on CNBC’s “Trading Nation.” Bo
One Dow stock is emerging as the unlikely winner in the trade war Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-09-18  Authors: keris lahiff, george frey, bloomberg, getty images, andrew harrer, patrick endres, design pics, first light, kcna, thomas barwick getty images
Keywords: news, cnbc, companies, war, trading, moving, month, emerging, winner, trade, dow, unlikely, nation, stock, schlossberg


One Dow stock is emerging as the unlikely winner in the trade war

One unlikely Dow stock is surging this month, even as the trade war looms 18 Hours Ago | 03:24

As U.S.-China trade tensions escalate, one unlikely winner is emerging: Dow component Caterpillar.

Shares of the industrial giant had fallen earlier this year on trade war fears, but they’ve rallied more than 7 percent this month, the best performer of all Dow stocks. Some investors see even more gains.

“It’s right up to its 200-day moving average,” Matt Maley, equity strategist at Miller Tabak, said Tuesday on CNBC’s “Trading Nation.” “That’s the level it got up to in mid-summer and pulled back so if it can finally break above that line, it’s going to be positive.”

Caterpillar clawed its way back within range of the 200-day moving average in recent weeks after tumbling below that support line in mid-June. It ended Tuesday less than 1 percent from that longer-term moving average.

“It’s also at the top-end of the downward sloping trend channel it’s been in since those January highs so if it can break higher from here, it’s going to be quite positive,” he added.

The industrials equipment maker remains in a correction, having fallen 14 percent from its all-time high set in mid-January. At the year’s lows in August, its shares were down 25 percent from the peak.

Boris Schlossberg, managing director of FX strategy at BK Asset Management, says trade headwinds continue to obscure Caterpillar’s outlook.

“I am very leery of Caterpillar here,” Schlossberg said Tuesday on “Trading Nation.” “Even if the Chinese don’t place any hard tariffs on Caterpillar, they could do what’s called a soft tariff and kind of direct investment and buying away from them by jawboning.”

Caterpillar, particularly vulnerable to trade, derives more than half its revenue from outside of North America. Europe, the Middle East and Africa comprise 23 percent of sales, while Asia-Pacific accounts for 22 percent.

“At this point I’d rather stand down and let the stock go by,” said Schlossberg.


Company: cnbc, Activity: cnbc, Date: 2018-09-18  Authors: keris lahiff, george frey, bloomberg, getty images, andrew harrer, patrick endres, design pics, first light, kcna, thomas barwick getty images
Keywords: news, cnbc, companies, war, trading, moving, month, emerging, winner, trade, dow, unlikely, nation, stock, schlossberg


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