SP500 had strongest week in 3 years. Moneyflow on that index, DOW and others has Risen above 22 day moving average...Money is beginning to scale in.
Europe QE has begun....Expansion of Balance Sheet in Europe will further elevate and liquidify markets.
The economy is accelerating based on historical correlations, as reported by an economist on CBS Market Watch web site.
The US Leading Economic Indicators equate to GDP Growth of 4.5%.
Based on historical correlations he forecasts the market rally length for 2+ years, until at least 2016.
This implies Capital Durable Goods and Telecom spending rising as some leading companies such as INFA and distributor AVNT have started to report.
European Central Bank considering Enlargening its QE Program, to include buying Corporate Bonds also. Europe Markets Rising and US Futures Markets Rising as this increases International Business Activity, Business Confidence, and Liquidity released into Markets. Details in UK news sites.
Further news by ECB are forthcoming.
Europe and International Revenue receiving a 2+ Year Tailwind as surprise Upside against pessimists.
Today Began QE Buying Up to $1.3 Trillian Bonds to Stimulate Europe Economy. (Bloomberg).
This Liquidifies & Lifts WW GDP & International Revenue. Good for Europe and WW Revenue deals.
Next Germany begins "soon" and "concrete" Fiscal Stimulus to stimulate spending by the regions's largest economy.
Business activity as European liquidity begins to elevate all boats doing International business.
Today the ECB began QE Bond Buying Program... Markets beginning to awaken and like it.
Channel Web UK site reports double-digit PC Shipments which are beginning significant business upcycle.
Demand for DRAM Chips surprise raising chip prices which have gegun upgrades to outperform for Wintel sector MU Micron Technology.
Company forecasts too conservative. (IBM groundhog-day has-been company flat revenue 10 quarters)
Europe Today started QE... Channel Web UK site reports double-digit PC Shipments which are beginning significant business upcycle. Company forecasts too conservative
Europe Quantitative Easing program begins very soon. Europe & Asia and US Futures Markets are Up Strongly on expectations for this coming within days (see Bloomberg news site). This is likely to have 2+ years duration.
Europe QE within days, German Fiscal Upspending will increase international business activity and strengthen Russell 2000 small cap from gross oversold condition, in the face of strengthening US economy.
Hedge funds are heavily in small caps and growth companies and are due for a significant rally.
Market mayhem pulled down small caps...now bouncing. EU QE within days & German Fiscal Stimulus reverse the international (fear) situation for the better with liquidity. Europe & Asia & US Futures Up Strongly on the QE news even
Most companies are beating Topline and Earnings Growth, reports CNBC. After market mayhem, this factual recovery reality is being noticed. US first 82 S&P 500 companies to report results, 68 percent BEAT earnings estimates & 63 BEAT revenue estimates reports FactSet (CNBC news).
Germany Stimulus Spending, US Fed QE4, & EU QE are being served very soon. This puts three new Bernanke Puts under the market.
Europe's largest economy Germany is preparing a big stimulus that is "concrete and soon" according to German Finance Minister Today .
Wolfgang Schaeuble Finance Minister revealed his push for plans for Germqny to invest "quickly and in a concrete way". Admitted publically in the press that Germany did not yet do enough, and "Germany must invest more" to accelerate growth. The worm has turned.
See the BBC news site Business pg 19 for the interview with Germany's Finance Minister who revealed this push for a larger German concrete stimulus spending soon.
The repentant Germany leader shows urgency and concreteness in this move toward Germany and Europe Acceleration.
August 26 ZHNE at $3.56
Oct 17 ZHNE at $2.15
Shareholder Value Change - 58%
During the conference call Zhone CEO said "I don't watch the stock price too much....it has been in the $3's".
Question: Is this CEO engaged? Does he care about shareholders? The stock price fell in half since he was named! He is hired to INCREASE shareholder value. Not ignore it as it halves in two months.
The glitter and excitement this CEO had faded. He hasn't done anything wrong; just hasn't apparently done ANYTHING. Shareholders have seen no plan or action that inspires. Consequently the stock slide to low $2s as investors were bored and weak hands wandered away.
Zhone CEO needs to get in tune with his company's stock price which shareholders care about, and take action to show steps are being taken to grow this company and elevate it. One analyst covers it.
Investors and potential interested investors seek evidence of anything to the upside:
* growth plan,
* increased funding,
* customer leads, opportunities, orders, shipments,
* new partners, or
* begin to work at a potential sellout deal or hint this is being considered for the right situation
Investment houses are attracted greatly to stocks OVER $5 / share which is their cutoff level.
Allowing it to slide to low $2 shows a CEO who SAYS he invested in in it and joined leadership to grow the company to a higher level, but at least so far.....hasn't DONE anything to grow the stock price higher.
Quite the opposite. So far. Come on Mr. CEO Turnaround show us your stuff.
MU 5 Minute Price Chart shows VAP Resistance at 29, 31, and 33 bounced in past 7 trading days.
MU Since Oct 10 on the same 5 minute chart shows MoneyStream is Steadily Climbing
AMD Analyst Opinion as published on Yahoo Finance by Thompson First Call sourced from 20 Brokers:
Price Target Summary
Mean Target: 3.91
Median Target: 4.00
High Target: 6.00
Low Target: 2.50
No. of Brokers: 20
Market Crazy Mayhem looks to be ending as US QE and Europe Surprise QE liquidify region businesses and markets.
AMD Price Appreciation 47% to 120% based on the 20 Analyst Estimates.
From Barron's Tech Trader:
Raymond James‘s Hans Mosesmann reiterates an Outperform rating with PT $3.30
MKM Partners‘s Ian Ing, reiterating a Neutral rating with PT $3.75
JoAnne Feeney with ABR Investment Strategy believes in AMD's strategy advises take advantage of recent selling with PT 2016 of $4
Draghi comments from "the Telegraph" news site:
Mr Draghi, who has all but ruled out further cuts in interest rates, suggested that FULL-BLOWN quantitative easing was an option if expectations drifted down further.
"The governing council is committed to move forward with other measures depending on the new outlook on medium term inflation expectations," he said on Saturday.
"Monetary policy remains accommodative and becomes more and more accommodative as we assess our medium term outlook."
Increasingly likely say two Fed Presidents... indefinite extension based on being data-driven....may become INCREASED to combat deflation (that europe was too putzy to deal with yet)
Draghi finally doing a Man-Up said more QE is coming within days... including maybe their "big gun"! Markets were positively shocked by it which awoke things this morning. Actual release of it will very much help lift markets.
US Two Fed Reserve Presidents said Fed QE is more likely to continue....one said it should be INCREASED to combat deflation here and abroad.