FB Is A Buy

Face Book （FB）broke above 50 day and  100 day moving averages and is forming a bullish Round Bottom chart formation. It's trend has turned up. Target is 70.

Reasons To Buy Apple (AAPL) Stock

Reasons to buy Apple (AAPL) stock:

.Price broke above 600, bullish Cup and Handle pattern, target 700.

.Stock to split 1 to 7 in June.

.Company announced additional $30B to a total of $90B stock buy back through next year.

.Corporate raider Carl Icahn increased his AAPL ownership by 2.8 million shares to a total of 7.5 million shares.

.iPhone 6 and other new products to be introduced starting August.


AAPL Weekly Chart: 

Mid-Session Market Comment 05-15-14

U.S. stocks fell this morning at the open and have been trending down. At the present major indices are falling more than 1% on average.  U.S. April consumer price index came in higher than expected ,industrial production fell 0.6% in April and fell the most in five years, 10 year Treasury yield has fallen below 2.5 percent indicating skepticism on US economic recovery.  Technically, earlier the S & P 500 fell slightly below the 50-day MA 1867 , Dow fell to about 18 points to the 50-day MA at 16400, Russell 2000 touched February low of 1082 level and they are all rebounding . These important supports are the basis for a short-term market bounce. Russell 2000 may bounce towards 1116. Although market's bullish sentiment has weaken after today's fierce selling. The above mentioned support levels will likely be retested after a brief bounce. 

Mid-Session Market comment 05-14-2014

U.S. stock market opened down this morning, it then slipped more and have been maintaining its decline. The Russell 2000 decrease of approximately 0.8%, while other indexes fell by an average of about 0.2%. U.S. April PPI came in at 0.6%, substantially higher than 0.2% estimate raised worry of  Fed tightening is to accelerate. Yield of the 10 year Treasury fallen below three and a half month trading range low makes people to think the US economy might not be as well as expected. Meanwhile, the Ukraine tension continues and the territorial dispute in South China Sea between China and Vietnam has led to violent riot against Chinese and Taiwan citizens in southern Vietnam. Two are reported death and thousands of Taiwanese and Chinese factory were destroyed. Technically, the Russell 2000 today continues to plunge and has fallen below its 200-day moving average 1115 level again. Its bearish trend continues. It is looking like the divergence between Dow and S & P 500's up trend and the Nasdaq Russell 2000's down trend may have resolved with the down trend being the winning side. Down side action likely continues today with the Russell 2000 support at 1091 and Dow support at 16585.

Thoughts On The Market

Dow broke out to new high. High momentum growth stocks are having oversold bounce but their trend is still bearish. The divergence in the stock market is a concern. The negative trend may eventually win out as we consider the situation in Ukraine is intensifying, whether the Dow is able to close above its previous intra-day high at 16631, will the S & P 500 able to follow Dow and break through its 1897 high, both the Nasdaq and the Russell 2000 have only 1 more day of bounce before hitting their 50-day moving average resistances and VIX visited 11.88 multi-month low today and is showing extreme optimism.

Mid-Session Market Comment 05-09-2014

U.S. stock market opened this morning slightly down, turned up and is now trading mixed. Ukrainian pro-Russian rebels planned to held referendum on May 11 in Donetsk and Luhansk regions may lead to more tension , Chinese low inflation implies economic slowdown and weak European stock markets are negative factors for US stocks.  Technically Russell 2000 is still below its 200-day moving average 1115, the trend is down. It may go down and test February low at 1082. S & P 500 is very close to its 50 days moving average 1865 level, it may fall below at any time. If that happens, it may fall toward 1842. So today's main focus is whether the S & P 500 can hold 1865. Due to referendum in Ukraine this coming Sunday, investors will be cautious ahead of the weekend and it is likely that the stock market will bias to down for the rest of the session. 

Mid-Session Market Comment 05-07-2014

U.S. stocks rose this morning at the open, they then fell, and are now rebounding. Major indices are now trading mixed with Dow and S&P 500 up and Nasdaq and Russell 2000 down. Putin's intention to solve the Ukrainian crisis and Federal Reserve Chairman Janet Yellen's optimism on the economy and willingness to continue maintaining accommodative policy are positives for the stock market . But significantly weaker social network SOCL, Internet FDN and biotechnology IBB sectors dragged down NASDAQ Composite and are weighing on the general market. Technically, the Russell 2000 fell below its 200-day moving average at 1114  caused it to drop again early this morning . However, when it  dropped to about 11 points near its February low of 1082, it started to bounce. As for the Dow , after testing its 50 day moving average 16363 level earlier, it bounced up strongly again and have gone from negative to positive. The stock market may have bottomed out short-term and likely begin a rebound. Dow may challenge its record high at 16,631 level again.

Stock Sectors That Are Dragging The Market Down

Want to know why the stock market is not doing well? Take a look at the charts of a whole variety of stock sectors that are not doing well. Some of them are already in bear market (price below 200 day moving averages) while some of them are in solid down trend (price below 50and 100 day moving averages). These weak sectors are Social Media SOCL, Cloud Computing SKYY, Internet FDN, Software IGV, Home Builders XHB, Retailers XRT, Biotechs IBB, Financials XLF, Consumer Discretionary XLY , Brokerages IAI, Networking IGN and Solar TAN.                                                                                                                                        
                                                                                                                                            

Mid-Session Market Comment 05-06-2014

U.S. stocks fell this morning at the opened, Dow was down about 100 points earlier, rebounded and is now falling again . Major indices fell by about 0.5% on average. Tense situation in Ukraine continues and downside actions of the the  European stock markets negatively impacting US stocks. Weakness in Social network SOCL, home builders XHB, Financials XLF, Internet FDN, and retailers XRT sectors also weighed on the market. Technically, the Dow and S & P 500 are above the 50 day moving averages, their trends are up but the Nasdaq and the Russell 2000 are below their 50 days and 100 days moving averages, their trends are down. For the last couple of days the Dow has been trying to hold its 50-day MA at 16358 while the Russell 2000 attempt to hold above its 200 day moving average at 1114 , if these support levels got pierced to the down side, indexes will continue to test their lows. Due to  increasing tensions in Ukraine and the S & P 500 VIX volatility index display overly optimistic investor sentiment, coupled with May is a weak month for stock, the chance of these support levels breaking down is high.

Banks Will Be Drags For the Market Next Week

JP Morgan Chase (JPM) sees 2nd quarter revenue to drop 20% from the same time last year. JPM is down 1.15% during after hour trading. Looking at charts of  major banks and they are not looking good. Bank of America (BAC), JP Morgan Chase (JPM), Citibank (C) and Goldman Sachs (GS) are all below their 50,100 and 200 day moving averages and trends are all down. The banking sectors will likely be drags for the stock market next week.

Is The Treasury Market Telling Us Something?

In the face of a strong Non Farm Payroll Report, US Treasuries dropped initially but rallied sharply mid-session and have been staying strong. 10 year yield rose to 2.666% intially then dropped back down to 2.574%, a 6 month low. Why are they behaving this way? Are bond traders seeing something they don't like in the Non Farm Payroll Report or they are seeking safe haven as the Ukraine tension escalates? Who knows, it may be because of both. The only concern I have is the 10 year yield is on the verge of breaking down after 3 months of side way actions. When the break down happens, stock investors may get scare and sell stocks off. This may be one of the reason why stocks reversed from up to down today.

Stock Market Likely Coming Down

$DJIA ,$COMPQ ,$SPX ,$RUT Dow's reversal to the downside after making new high this morning, continue weakness in internet ,social media and biotech sectors, big rally in gold and treasuries as safe haven all are bearish factors for the general market. It is likely the general market will turn down.