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

The U.S. Dollar is a key variable in all aspects of the marketplace. The strength of the dollar factors into the price we pay for food, gas, and everyday groceries. It also affects the equity and bond markets as investors factor in the risks of a dollar that is too weak or too strong versus the current economic climate. “The facts, Ma’am. Just the facts.” – Joe Friday So today we look at a chart of the U.S. Dollar and highlight why active investors should be watching the greenback right now. As you can see, the US Dollar traded into its 50% Fibonacci level again as its momentum is pulling back ..read more

Now that the FOMC is behind us, And the result was exactly what we expected-stay the course, And most sectors of the market found the obvious as a relief, And the metals rallied, right after I wrote that they would in the last Daily, And Jerome Powell said that most likely the next move won’t be a rate hike, And the Fed announced they will slow the decline of QT, And the idea of 2% inflation is on a back burner, And now we revisit Operation Twist, What are the junk bonds telling us? Junk bonds remain rangebound. But clearly, the bounce post FOMC helped market confidence. However, regarding&nb ..read more

In an op-ed for the Washington Post on November 5, 2010, Ben Bernanke did a victory lap, praising the Fed’s efforts in stemming the financial crisis. In the article, he discusses how QE and other Fed policies eased financial conditions, bolstering investor confidence. And higher stock prices will boost consumer wealth and help increase confidence, which can also spur spending. Increased spending will lead to higher incomes and profits that, in a virtuous circle, will further support economic expansion.  If Bernanke wants credit for his Fed policies that boosted stock prices, he ..read more

The following research was contributed to by Christine Short, VP of Research at Wall Street Horizon. First-quarter earnings have verified well thus far, but rate-sensitive industries continue to face headwinds Berkshire Hathaway’s Q1 results will be released at its annual shareholder meeting this Saturday Costco’s same-store sales figures come out the following Wednesday, and the retailer has received a lot of press for its presence in the gold market​ After a cool spell late last week, springtime is in full bloom around our parts in the Northeast. As the calendar flips to May, Q2 hasn’t com ..read more

There are three things you should rarely ever bet against: the Leaf’s opposing team in the playoffs, the American consumer’s ability to spend, and corporate profits. As we are now about halfway through U.S. earnings season, once again positive surprises remain the norm; 81% have beaten. It’s a bit better than the 20-year average of 75%. The fact is that companies are good at managing analysts’ expectations. At least enough to beat them when the numbers hit the tape. The size of the positive surprises has been encouraging as well, at just under 10%; the highest surprise magnitude in some time ..read more