Nazzy Now Confirming Positive Reversal, New Closing High For Dow

Last night I talked about the need for the Nazzy to get above and close above that 50-day moving average in order to instil some confidence.  Today it managed to do so, and the volume was better than yesterday.

Yesterday's close could have represented a textbook fail spot, but today it managed to clear that resistance.  The QQQ closed at 140.70 today, so now the next target would be around 142.25, then maybe the old all-time highs around 144.

For you technical geeks, it also looks like the MACD curled positive today on QQQ. It will be important to see the Nazzy hold and not give it back now.

The FANG stocks all had good days and FB made new all-time highs.  AAPL still looks a little soft if you want to include it in the FAANG.

Biotech was up a percent today and I still love that daily pattern.  As you can see below, XBI tried poking its head above that bull flag.  There was some good action in some individual names today and the volume on XBI was very good.

FOLD has been a pleasant surprise, but just a heads up, they announced a secondary after the market closed, so it may open down a few percent tomorrow.

AKAO may have found its mojo again as it popped 9% on the best volume in a while.

New name PBYI is trying to break out of that coil.  Once it gets through 90-91 it can take off.

I had a couple chances to take a couple of bucks out of SOXS, but I didn't and I stopped yesterday. I hope you did better.  The dip buyers in this market are insatiable and unless you take the trade quickly on the short side there is a good chance you take a stop.

Last night I mentioned that I liked the look on SGMO.  Today I added it as new long to the portfolio.  Once through the 9.70 level, I can see 11 bucks.

Hopefully, we can see some good trading action going forward even with a low volume market.

Earnings Are Coming, Here's Some Info

  • Second-quarter earnings season kicks off this week. The outlook for S&P 500 earnings remains bright after earnings growth accelerated to the highest level since the fourth quarter of 2011 last quarter.
  • According to FactSet, second quarter earnings are expected to grow 6.3% year-over-year with sales up 4.7% year-over-year. Last year, second quarter earnings fell 2.8% with sales up 0.1% as earnings fell in commodity and financial sectors.
  • Last quarter, earnings growth accelerated to 13.8%, with sales up 7.7%. That was the third consecutive quarter of growth at the highest level since the fourth quarter of 2011.
  • Earnings tend to come in better than Wall Street's forecast, which are generally based on guidance from conservative company management.
  • Earnings are expected to grow 3.7% excluding the 364% growth (off a low-base) expected from the energy sector. Earnings growth was 9.7% in Q1, excluding the energy sector.
  • Breaking down the rest of second quarter earnings per share growth estimates by sector:
    • Technology +10.3%, Financials +5.5%, Materials +4.2%, Real Estate +3.9%, Consumer Staples +3.2%, Industrials +2.5%, Telcos +1.2%, Healthcare +0.5% (with large-cap Biotech down 8.7%), Utilities -1.5% Consumer Discretionary -2.3%

 

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