send DOW over S2 but below S1, or 16894. October's pivot line is at 17109, where I can expect another round of profit taking before Thanksgivings. DOW falls into a technical trading range. After all, S&P's p/e is back to the expansion mode. The argument from sell side is weak sales/revenue while the bulls focus on decent earnings. The fact is that corporate America has an ultra strong balance sheet to sustain another global recession starting in 2015. I would pay more attention to domestic economy with a big question mark on how big they as a cluster could be from stock market volume perspective by % of sales from global market (or other than the US economy.) Say, Yahoo has majority of sales from the US, I prefer to stay with my holdings and adding more. IBM had some problems from China due to the fact that Chinese government has suggested a ban on its products and China has been a big customer of IBM server. Microsoft will be less impacted because its sales from China has been in embarrassedly low volume since the start (I have to LOL since it's embarrassedly disproportioned with number of trips Mr. Gates has paid visits to China). MCD got a black eye from its supplier and will not do well in China in near future. CAT? no bounce in China no matter live or dead. The rest is in pharma. Not bright either.
In conclusion, I think it is good time to inject new blood into DOW by replacing some of the components.
It provides comfort on geo-expansion. If food is good for millennia, it is good for their parents. I mean the portion of one order is a little small for me, but two is waste of half. I did realize a bigger pancek might not be heated well, but an order in bowl should solve the issue. Price wise has some rooms. I think $10 of an order is fair price if its size goes 1.5 times bigger.
exercising options of 40 MM shares at 2.59 gave a fair price marking. I am accumulating put option volumes with my Citi's $2000 per month. What am I going to lose? LOL.
They are the drivers of F-150 and nothing else. Bears have the case.
facing another deflation cycle. Innovation is pretty much stopped for a while. M/As can't run forever. The next support to the market or economy is corporate tax code change. So, here comes a big question along with a big economic model, that is, how much tax revenue were vipered during the last crash. The result should include deficit and printed cash for deficit spending. I think it's about 2-3 trillion. Can our government handle a P/L statement as such? Depends on who do you ask. Our voters are not well educated in this regard by any standard.
RE is crashing. Is this still myth on the last housing bubble? A Bubble I mean the deflation killed the housing market other than an "artificial" financial crisis itself. I guess that most of you on Wall Street still don't know what have caused the last market crash. This is not running into a circle of egg or chicken, but parent-child relation. As economy was "over heated" (quoted because it is wrongfully illustrated), the new economy is getting stronger, so it's "over and over heated"? Of cause not. As a brand new product gets worn out, deflation in price shows its path out of the door. At sometime, Ben mentioned deflation is more difficult to be corrected than inflation. I think the last crash offers a fresh lesson in this topic. Obviously, you just don't get IT!
hike expectation should be higher or lower at this point. The myth is higher rate doesn't help RE (RE=real estate) by mathematical value, other than financial value due to expectation of inflation and we know that RE is good at countering inflation. If so, what else stocks share the same virtue?
sentiment and housing sector. The market is in a neutral stand shared with The Fed regarding interest. 4% GDP growth brings high risk to a textbook recession even the whole year's growth remains at 3.5% which is a decent rate. Let the market play out the volatility before penetrating the 200 days moving average.
You didn't read his mind. His words means a bearish mark on CMG as he thought current share price of LOCO justifiable if LOCO is profitable & expanding. So, let's wait for a message from LOCO to confirm his say after the share price is traded below $28.
weaponry stocks are at all time high. let me know if this answer can be simplified further.
price surging this quick is not a slamdunk by an analyst. MCD's problem is of short term memory. Your portfolio has to run a little longer than that.
Dow Jones is trading right below R2. I wouldn't be surprised profit taking as AMZN was dragging down the market. The curve might turning to its monthly pivot, but it will rise again. Customers are leaving Amazon for a good reason. Its "Prime" shipping cost too much to a customer in comparison to most of bulk sales clubs such as COSTCO. In short, I wouldn't take Amazon as an indicator of retail sales.
Darden (DRI) has less growth, but debt of $2 B. In an inflation creeping up environment, I'd hesitate any company with huge debt, or debt to profit ratio. CMG has no debt in this case. anyway, investors are used to compare CMG to MCD whose p/e is 17, the same as that of DRI's. 67 in general is a little high for a restaurant, but not for one who dare to increase price and enlarge customer base at the same time. Eventually, CMG will be replace MCD. having said so, there is a room of space with roughly 5 times of price appreciation in future.