Tuesday, July 17, 2018
Did The Chart Tell Us Anything About Netflix?
Did the chart warn us that Netflix was about to drop 13%? Let's go to the chart courtesy of Erlanger Chart Room.
We note that in this chart we are not looking at simple candlesticks. Instead we are looking at Heikin Ashi candlesticks. They turned red a couple days ago.
Next the Erlanger Volume Swing (EVS) turned down and crossed below its 20 day moving average (red line).
Third, the Erlanger Crossover Spread (EC Spread) turned down and is now negative.
However, the Displaced Moving Average which we use to track the bias on any period, in this case weekly, was still positive. So the signs were there of possible top.
Futures Modestly Lower
IPOs on deck of note none but 11 for the week. Secondaries of note none today.
In After Hours Trading: SURPRISES NFLX +.06. MISSES none of note. FLAT: .
Lower Guidance: .
Mixed Guidance: .
Positive Guidance: .
Gold higher with silver and copper lower. WTI Crude and Brent Oil Futures mixed to flat. Natural Gas is higher. $ is higher vs Euro, higher vs. Pound and higher vs. Yen. US 10 year Treasury price 120.19 with yields flat since yesterday. Prices as of 7:40 a.m. EDT.
Top Sectors Conglomerates and Financials.
Weak Sectors Basic Materials and Healthcare as well as Industrials.
One month winners Basic Materials, Utilities, Services and Healthcare.
Three Month Winners Utilities.
Six Month Winners Services, Basic Materials, Technology and Conglomerates.
One Year Winners All except for Conglomerates.
Year To Date Basic Materials, Services and Technology.
Earnings due tomorrow morning: NVS ABT ASML MS USB ERIC MTB NTRS GWW TXT PACW MTG WAFD.
Amazon (AMZN) suffers outage during Prime Day. (Bloomberg)
Blackrock's (BLK) Larry Fink says that clients are not interested in buying Cryptocurrency. (Bloomberg)
Republicans are split on Trump's comments after meeting with Putin. (WSJ)
Goldman Sachs (GS) names David Solomon to succeed Lloyd Blankfein. (WSJ)
Consumers are struggling to pay off debt. (WSJ)
Europe seeks new trade partners besides the U.S. (NYT)
Deutsche Bank (DB) beats with latest earnings. (NYT)
Lower Guidance: MSM.
Current Morning missing: .
Mixed Guidance: JNJ.
Positive Guidance: .
Yesterday saw 968 stocks rise and 1925 fall on the NYSE. NASDAQ saw 1150 rise and 1783 fall.
The SP 500 is back above its 50 day exponential moving average and is above its 200 day exponential moving average. The Russell 2000 is above its 50 day moving exponential average and is above 200 day exponential moving average.
The 10 day spread moving average of breadth is in cash. The Madison Market Timing Indicator is still invested.
YTD 54% of stocks are higher and 54% are lower. Updated 7/6/18 close.
|Goldman Sachs||MTW GNRC GT|
|Citigroup CC Merrill Lynchp|
|Banc of America|
|Robert W. Baird|
|Sun Trust RH|
|Jesup & Lamont|
ALKERMES INC (ALKS)
by Superstock Investor
What Goes Up Must Come Down
Netflix beat estimates by $0.06 but gave poor subscriber growth numbers slowed. 6.2 million were estimated and only 5.2 million were produced. The stock is off -13% premarket. However, remember the stock is up 108.63% through yesterday.
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