Short term, T Is very bullish. Support is at 35.99 and resistance is at 36.74. Long term T is also bullish and hence remains a good long term hold in a conservative stock portfolio.
Running scams on seniors is fun and games for most businesses doing direct contact with the public. It comes about because seniors have money to spend and are primarily disrespected by younger people.
There is so much emphasis on youth and beauty in our country that billions of dollars are spent annually on products promising to enhance them. Also keep in mind that many seniors are slower, trusting and hence more gullible.
Because T was trading in a narrow range the Bollinger bands were compressed. When a stock exceeds the Bollinger band the band is adjusted that's all-in this case adjusted higher. An RSI of 70 is getting up there but usually it could take an RSI of 80 to sound the alarm. If T was to trend sideways here for awhile the RSI would come down some even though the price was not rising.
It is possible that a new high will be reached soon. Looks like accumulation started after the x dividend date and this triggered off buying and short covering as the momentum built. The chart pattern shows that from the bottom to the next trading top takes about 6 days. We should have a couple of days more on the upside which agrees well with your estimate of a possible new high by the end of the week.
You are so right. You saw the flaw in the argument, namely you would have to pay the dividend. There seems to be no free lunches!
The idea is simple enough and it seemed always to work before -short a stock like T just before the x div date and buy it back a day or 2 later. Usually down by the dividend amount when bought back and a nice safe profit is made in a very short time. A short had to be quite nimble this time as T started to rally quickly and now if a short missed the narrow window of opportunity to buy back could now be looking at a loss. This loss could get worse as T seems to be in gear and is surpassing 36 in price. I notice lots of negative comments coming from blurbs like Zacks. Could it be that the short position is larger than we knew?
Utilities lead the flight to safety again as new highs on the NYSE drop again to 65. Of the nearly 8000 stocks on the NYSE the average new daily highs has been about 300. This indicator has worked in the past as an early warning of a possible correction in the market. I read that about 1 in 6 males in the US is unemployed or underemployed. The economy can't find traction without the creation of more middle class jobs. Congress seems paralyzed. The president is losing the support of the people. Corporations are using their overseas cash to buy certain foreign companies to receive a more favorable tax situation thus making it unavailable for US expansion. Tensions in the Israel/Hamas situation is causing concern that a full scale war may break out (this could be good for gold). T should be a bright spot in these circumstances because it pays a good dividend as the 10 year government bond is falling to near 2.5%. T also has the possibility of decent growth if the merger with DirectTV is approved.
New highs for the NYSE were only 100 today. The only time recently they were lower was back on May 20 when they were 96. Also note that they were 577 on Jul 1, 240 on Jul 2 and 306 on Jul 3. You might say so what- but often this sharp drop off is indicative of a tiring market. Is the market in general overextended and is due for a mild correction? What do you think?
Sorry about the typing errors in the Heading. I spilled a coffee down my keyboard and the letters are sticking!
As T approaches the x dividend date, it is showing some interesting technicals. Firstly, the RSI has been climbing and is now at 80 This usually signals an approaching top. On the other hand the candle chart showing some white candles followed today by a doji is thought by some to be bearish, but actually shows a continuation 59% of the time and bearish only 41% of the time. It would appear that we will continue moderately higher until the x dividend date and once again see our sell off.
It was only my best guess as to what might happen. The 1/3 pullback of a range is a reasonable expectation. A Fibonacci examination of the alternatives might yield a similar result.
A 1/3 pullback of the range 31.8 to 36.7 would yield about 35.1. If you could get the stock around this price I think you would be ok considering the approaching x div date. Of course if you wait till after the x div date the price could be as low as 34.5 which is the 200 day moving average. I know of pay life insurance policies that are paying nearly 5% without the same amount of risk. It all hinges on whether T can come up with some growth possibilities. No stock equity is without risk but some are more risky than others. Right now there is a flight to safety in the market like utilities and higher paying DJIA stocks. The Telecoms have not been participating in this except they have not been going down much either. Buying T is a personal decision which only you can make for yourself. Remember that a well balanced portfolio of 5-10 stocks will be safer than putting all your eggs in one basket. Dollar averaging over time say putting so much in every month insures a good average price for a stock. If you can watch enough, lightening up a little on stocks when they get very high (RSI values approaching 100) can help even more.
Watching T plug along day after -up a little down a little- can give one the idea that this stock is just too boring to own. But then one would forget the reason for owning stocks in the first place-to make some money with reasonable risk. T has all the right stuff, good earnings, good dividends, reasonable risk and a good chance at higher growth in the future. What's not to like about boring?
I have both T and VZ but to tell the truth neither seems a ball of fire right now. Some would like to get these established companies out of the way to make tons of money with a bunch of "fly by nights". When Ma Bell was broken up to make more competition and lower rates, we ended up with this mess and higher rates.
The red skin potato now under the pressure of possible name change. Some suggestions please!
For 3 days now the candle chart shows a bearish pattern where the stock closes below the open. The trading range is probably between the 50 day moving average 35.5 and the 200 day moving average of 34.5. The RSI is slightly above the neutral point of 50 showing that for the moment the stock is fairly priced. However, as we approach the x div date there should be a pick up in interest and most likely a test of the 35.5 area.
As we age our immune systems deteriorate over time and many ailments occur in old age. Some probably do happen more frequently due to over exposure to environmental factors. My skin cancer was caused by too much exposure to the sun. But I loved golf. What would have been better, to stay indoors and watch others play or get out there and take the consequences. I was born with a fair complexion and was genetically more susceptible to skin cancer. There are going to be people more susceptible to electromagnetic fields than others I think. But what are they to do, not use any TV's, phones and computers?
An old broker friend of mine (remember when we all had brokers?) once told me that the longer a stock stays in a sideways move the higher it goes when it breaks out. Now, it seems to me that T fits this pattern and could move much higher especially if earnings start to improve.