Superstock Investor
Morning Briefing

Tuesday, July 17, 2018

Morning Matters:

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.

[Image 1]

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.

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Market Matters:

Futures Modestly Lower

In After Hours Trading

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: .

What's Happening This Morning

U.S. futures: S&P -2.75, Dow Jones -30, NDX -3.50 and Russell 2000 +0.70 with fair values modestly positive. Asia up and Europe lower.

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 Expected

Earnings due after the close (by avg. trade volume): CSX IBKR UAL FNF WTFC PNFP MLNX ADTN.

Earnings due tomorrow morning: NVS ABT ASML MS USB ERIC MTB NTRS GWW TXT PACW MTG WAFD.

Rags & Mags: Inside Wall Street

Support for President Trump and Prime Minister Theresa May both fall post meeting. (Bloomberg)

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)

Reported Earnings This Morning

Reported Earnings This Morning (Best to Worst absolute beats/misses [+.02 or greater/-.02 or worse]): SURPRISES CMA 0.22 GS 1.33 JNJ +.03 OMC +.06 PACW +05 UNH +.10. MISSES .

Missing: .

Lower Guidance: MSM.

Current Morning missing: .

Mixed Guidance: JNJ.

Positive Guidance: .

Data Points

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.

Economics

June Industrial Production is due out at 9:15 a.m. EDT and is expected to rise to 0.5% from -0.1%.

Politico

Federal Reserve Chairman Jerome Powell begins two days of Humphrey Hawkins testimony as he starts with the Senate Banking Committee.

Conference & Analyst Meetings

Meetings, Conference Calls or Announcements of note, CYDY.

Conference of Note

Farnborough International Airshow

M & A News

Key Upgrades and Downgrades

Firm Upgrades Downgrades
JP Morgan    
Goldman Sachs   MTW GNRC GT
Morgan Stanley    
Deutsche Bank    
Citigroup CC Merrill Lynchp    
Merrill Lynch    
Wachovia/Wells Fargo    
Credit Suisse    
Banc of America    
UBS    
Stifel NFLX  
William Blair    
Jefferies AUTL  
RBC    
Needham    
Raymond James    
Stifel    
Friedman Billings    
Bernstein    
Nomura    
Robert W. Baird    
Cowen    
Sun Trust RH    
MKM    
Sandler O'Neil    
Keefe Bruyette    
Cantor Fitzgerald    
CIBC    
Dresnder    
Nomura    
HSBC Securities    
Cowen  
William Blair    
BNP Paribas    
B. Riley    
Kaufman  
Brean Murray    
JMP Securities    
Wedbush    
Argus    
CLSA    
BB&T    
ING    
Roth    
Janney Montgomery  
Susquehanna    
Think Equity    
Merriman    
Cantor Fitzgerlad    
BMO Capital  
Benchmark    
Jesup & Lamont    
Macquarie    
Canaccord Adams    
Evercore    
MKM    
Bernstein    
CLSN    
Guggenheim    
Auriga    
Stephens    
BTIG    
Global Hunter    

 

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Today's Superstock Investor Stock Scorecard:

ALKERMES INC (ALKS)
by Superstock Investor


 

Alkermes(ALKS) peaked in February at $71.22 and recently bottomed at $39.54. The current price is $44.57. So the question is with the drop is there some value?

Company Information

Company: ALKERMES INC
Sector: Pharmaceuticals
Industry: Biotechnology
Market Cap:  $8,900 (Millions)

Targets

  Price %Gain  
Current Price $58.49    
Price Target $41.45 -29.1%  
Upper Bound $54.71 -6.5%  
Lower Bound $32.35 -44.7%  

Fundamental Variables

P/E Ratio 67.0    
Sales Growth 47.8%    

Valuation Variables

  Past Current Future
Profitability (CFROI) 2.0% 11.2% 9.1%
Growth (in Assets) 5.2% 2.3% 2.3%
 
Color Legend
Company
Rating
Company
Rank
Excellent Top 10%
Good 11- 30%
Average 31- 70%
Fair 71- 90%
Poor Bottom 10%

Stock data last updated 01/10/2017.

Data provided by QPI, Inc. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. QPI, Inc. is not liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing this page, you agree not to redistribute the information found herein.

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Articles That Matter:

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.

Neflix

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