- Jeff Macke at Breakout53 mins ago
After looking poised to suffer a major breakdown on Monday, stocks have spent the last couple sessions trading in a manner best characterized as being somewhere between irrational terror and inexplicable euphoria. At this point all the bulls and bears can seem to agree on is that the market seems just a little crazy.
When the world of finance starts speaking in the language of self-help it's time to tune out your emotions and study the charts. National treasure and friend of Breakout Louise Yamada of LY Advisors is here to tell us what the technicals are saying about the market's mental health.
“4,000 for the Nasdaq (^IXIC) is critical because that was the February low,” explains Yamada in the attached video. “If you really go below that on a sustainable basis you’ve been in a lower floor for the first time in this progression.”
She’s referring to the entire five-year rally since the famous lows made in March of 2009. Obviously such a dramatic trend break would be troubling to bulls.
- Jeff Macke at Breakout1 hr ago
Shares of RadioShack (RSH) have been getting hammered lately, even by its standards. The stock is down more than 20% in five days and today we found out why. According to the Wall Street Journal RadioShack management is in tense negotiations with lenders over the company's plan to close as many as 1,100 of its 4,300 US stores.
RadioShack announced its store reduction plan in March when it revealed a $191 million loss for the holiday quarter. The plan was the closures would allow the company to focus on its new prototype stores. Now lenders are claiming RadioShack's credit aggreements only allow the company to close 200 stores without agreement from debt holders.
- Pras Subramanian at Breakout4 hrs ago
Another strong day for the market (^GSPC) yesterday has traders in better spirits after an ominous start to the week. Bullish comments by Janet Yellen on Wednesday helped, but one can’t help but feel we’re still in uncharted territory, with most market veterans seemingly grasping at straws to determine where we are in terms of the current bull market.
Many believe we are in the midst of an ongoing bull. Paul Schatz of Heritage Capital is one of these prognosticators, but senses our current bull market is getting close to be sent out to pasture. “The Bull market is old, and it’s wrinkly, but it’s not over yet,” Schatz opines in the attached video. “The bull market is transitioning to its final phase which is normal, bull markets don’t last forever.”
With that in mind, there are 3 sectors Schatz likes as the current bull market heads off into the sunset.
- Jeff Macke at Breakout21 hrs ago
Activist investing has come a long way since Gordon Gekko was explaining the merits of greed to shareholders of the fictional Teldar Paper in 1987. Then it was all about “greenmail” and hot tips but today activist investing is characterized by billionaire investors lecturing CEOs on the art of creating shareholder value.
In the attached clip Jason Trennert of Strategas says the activist investing trend is still picking up steam. “Activist strategies within the hedge fund complex have been among the best performing. As a result they’re attracting enough capital so that it really matters.”
- Breakout Staff at Breakout23 hrs ago
Making the list today as measured by your Yahoo Finance Ticker searches are:
Intel (INTC): The world's largest semiconductor maker higher today after reporting an earnings beat last night. While Intel's execution and margin control is tip top, the company is still heavily reliant on PC-based products. Intel's future is in mobile and that's still a tiny portion of overall revenues. With shares up more than 20% in the last 12 months, investors are taking a slightly guarded approach today.
Credit Suisse (CS): The bank trading lower today after earnings disappointed the street. The second biggest Swiss bank said a drop in debt trading weighed on investment banking profit. Like so many of the banks reporting this week, Credit Suisse is trying to change its business model on the fly in order to de-emphasize trading and reduce leverage risk. Credit Suisse shares are off 2.5% today but still higher for the year to date.
- Jeff Macke at Breakout1 day ago
With less than two hours to go in the trading session on Tuesday it looked like we might be watching the death throes of the five-year old bull market. The S&P500 (^GSPC) was down over 1%, the Nasdaq (^IXIC) was collapsing below support at 4,000 and there seemed as if the last of the dip buyers had finally run out of cash.
Just when all seemed lost the market staged one of the snapback reversals that have been the defining characteristic of 2014 thus far. Cynics would suggest there was something artificial (read: “rigged”) about the start of the rally but that didn’t make it less impressive. Paul Schatz of Heritage Capital says yesterday wasn’t the bottom for stocks in the big picture but says the trading set-up clearly favors the bulls.
“It’s a trading bottom,” opines Schatz in the attached video. “To me it’s pretty clear: if you close below the lows of the reversal day you’re clearly wrong and you get out but I think there’s enough indication to at least warrant a trading rally.”
- Jeff Macke at Breakout1 day ago
Hope springs eternal as stocks came roaring back from steep mid-day losses yesterday. Is the worst behind us? Maybe, but I doubt it. Picking exact lows and peaks is a sucker's game. Your job is to manage your emotions and look for opportunities. Here are three things you need to know and a strategy to handle the pain:
1. The selling will probably get worse. So far the fact that the tech and social media stocks have been pole-axed without taking the broader market with them is impressive, but it probably won't last. Selloffs don't end until the idea of a "rotation" is replaced with panic. We aren't there yet. Running away from a tech selloff by getting long shares of a bank stock is like running away from an oncoming train. The S&P500 is every bit as at risk as the Nasdaq, like it or not.
2. For the S&P 500 (^GSPC), Purple Crayon Support doesn't come in until about 1,740. That's about 3.6% lower and where we bottomed in February.
- Jeff Macke at Breakout1 day ago
On December 9th of last year the U.S. Treasury sold its final 31.1 million shares of General Motors (GM) stock, coming just a year after Treasury announced plans to exit its 500 million share position in the once bankrupt car company. According to a timeline created by NPR, the Treasury department sold out less than one month before GM executives linked a faulty ignition switch to 31 crashes and at least 13 fatalities.
Treasury’s decision to dump its entire stake in GM allowed it to avoid $262 million in potential losses.
Nine days later in New York former SAC trader Michael Steinberg was convicted on multiple counts of insider trading shares of Dell. Steinberg will be sentenced later this month and is facing up to 85 years in prison. Steinberg’s crime was trading based on a chain of evidence including ex-employees and an analyst with a different firm who reportedly had close ties to the company.
- Breakout Staff at Breakout1 day ago
Here are your Trending Tickers for Tax Day, Tuesday April 15:
Herbalife (HLF) - Bill Ackman's favorite stock to hate is down almost 3% today on reports that New York's attorney general, Eric Schneiderman, is launching his own investigation into whether or not Herbalife is a pyramid scheme. The New York Post says the latest investigation began after two whistle blowers came forward. Herbalife is also being investigated by the FBI and the FTC. All of this scrutiny started more than three decades after the Herbalife was founded but just months after Bill Ackman started losing millions on his short position.
Coca-Cola (KO) - The beverage Goliath is up more than 3% today after reporting quarterly earnings that beat revenue expectations and were inline with the street's EPS estimate. As is usually the case, Coke is killing it in emerging markets but its core soda business is actually declining. Diet Coke sales are declining and the U.S. diet soda market as a whole declined 7% in the first quarter.
- Pras Subramanian at Breakout1 day ago
“These aren't the drones that you're looking for…” or so one imagines Larry Page and Sergey Brin whispering into the ears of Facebook (FB) founder and CEO Mark Zuckerberg. Google (GOOG) confirmed on Monday that it had swooped in and acquired drone-maker Titan Aerospace, a company Facebook was reportedly interested in acquiring.
Although Facebook ended up buying U.K. based drone start-up Ascenta, the turf war for drone supremacy is just taking off. Led by their visionary founders, both tech giants are taking to the skies to plant their company’s flags. It’s all about reaching an estimated five billion people worldwide who need access to the Internet, and thus capturing more information and getting in front of ever more eyeballs.
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