The following research was contributed to by Christine Short, VP of Research at Wall Street Horizon. The spin-off ETF has outperformed the S&P 500® lately as major companies seek leaner operations Pressure from activist investors may also be stirring up spin-off volume As stock splits sour and IPO activity remains light, executives might continue to seek to add value through crafting spin-offs. Stocks sank in April as inflation fears continued to permeate investors’ psyche. Spice in a few weak economic reports on the growth side of the ledger, and the dirty s-word is being tossed around ..read more

Yesterday we covered the Retail Sector XRT and how important the consumer is to the health of the US Economy. Furthermore, we have been commenting on the transportation sector through IYT and how that plays a crucial role in the U.S. economy.  That sector has been underperforming. Key aspects: Economic Contribution: Transportation services contribute approximately $1.2 trillion (equivalent to 5.4% of the U.S GDP) This sector encompasses various modes such as road, rail, air, and maritime transport, as well as logistics and warehousing services ..read more

On the heels of Apple’s latest earnings report, the Wall Street Journal shared an article discussing how Apple became such an oversized investment of Warren Buffett’s company, Berkshire Hathaway. Given their success with Apple shares we think it is worth understanding the logic that drove Buffett to accumulate such a large position in Apple. Unbeknownst to most, Todd Combs, a member of the Berkshire portfolio management team, is responsible for bringing Apple to Buffett’s attention. However, not all credit goes to Combs. Buffett presented Combs with a challenge that ultimately highlighted Appl ..read more

The choices we make as consumers collectively shape the economic landscape. Our spending patterns influence the well-being of our communities and the nation. And the Retail Sector etf XRT always has a lot to say about the consumer and the markets. Consumer Spending and Economic Growth: Consumer spending constitutes approximately two-thirds of the U.S. economy. When consumers buy goods and services, it directly contributes to economic growth. A robust and self-sustaining recovery relies on solid growth in consumer spending.  However, during the post-recession period, con ..read more

Precious metals have enjoyed a huge rally that has seen gold reach new all-time highs and silver reach new multi-year highs. There are a lot of tailwinds working for gold and silver today… global warfare, geopolitical instability, and inflation. Today we look at a long-term “monthly” chart of Silver futures to analyze the current rally and highlight where it might go next. As you can see, Silver futures are trading at an important support/resistance line (support 10 years ago and resistance 5 years ago and today!). This heavy resistance has kept silver from breaking out. Perhaps it won’t hold ..read more

The following research was contributed to by Christine Short, VP of Research at Wall Street Horizon. Q1 earnings continue to come in better-than-expected, pushing the overall S&P 500 Index EPS growth to 5.0% Outlier earnings dates for the week ahead: Loews Corp (L), Williams Companies Inc (WMB), Vertex Pharmaceuticals (VRTX), Assurant Inc (AIZ), Arista Networks (ANET), Rockwell Automation (ROK), Jack Henry & Associates (JKHY), MarketAxess Holdings (MKTX) and NiSource Inc (NI) The final peak week of earnings season concludes with 3,507 companies expected to report First quarter earnin ..read more

I have used monthly charts to determine support and resistance levels. Moreover, this timeframe is often the best indicator for either the end of a countermove or the start of a bigger megatrend. The 23-month moving average (blue) and the 80-month moving average (green) are my go-to’s. One is a shorter 2-year business cycle while the other is about a 6–7-year business cycle. Here are a bunch of monthly charts that have my attention. Often, a picture says 1000 words. Alibaba (BABA)-the end of the correction or the start of a much bigger move? BABA has traded below the 23-month moving average s ..read more

Why does Warren Buffett continue to hold a massive stake in Apple? From a technical perspective, it’s because this is a stock that continues to show strong long-term momentum characteristics, with pullbacks to an ascending 150-week moving average often serving as perfect entry points. Using multiple time frame analysis, we can relate the short-term movements in AAPL to the medium-term rangebound pattern. We can then focus on the long-term uptrend that has defined Apple over the last 5-10 years. In today’s video, we’ll use multiple time frame analysis to show why the recent pullback may se ..read more

This is the 5th weekend in a row I have covered the Economic Modern Family of important stock market ETFs as my weekend update. From 5 weeks ago when the Retail Sector ETF (XRT) and the Russell 2000 ETF (IWM) sold off hard after failing to take out the weekly channel highs- To 3 weeks prior when both held key weekly moving averages- To 2 weeks ago, when the Semiconductors Sector ETF (SMH) took the lead again as the only member ETF to clear back through the weekly channel lows. To This past week when ½ the ETFs cleared back through the weekly channel lows. The Family of ETF ..read more

A big story last week was that AI is fueled by natural gas, which should increase demand. That story did little for the futures price. Then this week other stories came out that:  Prices were supported by higher feed gas flows to Freeport LNG and lower U.S. production. Chesapeake Energy’s decision is to maintain output curtailments. NatGasWeather.com says that a hot forecast for Texas could also lift demand for power generation. We also just learned that the weekly build in inventories came in roughly in line with expectations which was received with a rise in prices as of today. Year ..read more