S&P 500: Not A Rocket!

Posted on by Aibek Burabayev

Back in May, I posted the alert about the upcoming rally of the index in case of the breakup of the triangular consolidation. Indeed, the S&P 500 already booked more than a 100 points gain from that day ($2679) but what I see in the chart now is not inspiring me these days.

Below is the new daily chart where I made the annotations to express my concerns.

S&P 500 Daily Chart: The Index Loses Steam Within A Possible Large Complex Correction

S&P 500 Daily Chart
Chart courtesy of tradingview.com

First of all, let me tell you why I gave the title “Not A Rocket” to this post. Usually, a good rally has a sharp angle of the trend, and anyone could easily identify it with the naked eye. This is what I was looking forward to giving the title for the earlier post using the proverbial phrase “Fasten Your Seatbelts.” Continue reading "S&P 500: Not A Rocket!" →

Weekly Futures Recap With Mike Seery

Posted on by The INO.com Team

We've asked Michael Seery of SEERYFUTURES.COM to give our INO readers a weekly recap of the Futures market. He has been Senior Analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets.

Michael frequently appears on multiple business networks including Bloomberg news, Fox Business, CNBC Worldwide, CNN Business, and Bloomberg TV. He is also a guest on First Business, which is a national and internationally syndicated business show.

Gold Futures

Gold futures in the August contract is trading at 1,229 an ounce finishing lower by another $12 for the trading week continuing its bearish momentum. I've talked about this market for quite some time as I remain bearish and I think there's a lot of room to run to the downside as 1,200 is in the cards possibly this week. The entire precious metal sector continues to melt away on a daily basis, and I sound like a broken record as I see no reason own gold or any of the precious metals at this time as the U.S. dollar continues its bullish momentum as fundamentally & technically speaking the gold market has nothing bullish at this time. Gold prices are trading far under their 20 and 100-day moving average telling you that the short-term trend is to the downside, and if 1,200 is broken, we could test last year's low around 1,125 as I still think prices look expensive. The NASDAQ 100 and Russell 2000 hit another all-time yesterday as that's where all the money flows are flowing, and all of the interest lies in the equity market and not in gold. I think this trend will continue throughout 2018 coupled with the fact that the commodity markets remain extremely weak as the uncertainty about the Trump tariffs have certainly put the kibosh on prices in the short term and if you are short stay short.
TREND: LOWER
CHART STRUCTURE: POOR
VOLATILITY: LOW
Continue reading "Weekly Futures Recap With Mike Seery" →

AMC Looks Compelling With Record-Setting Box Office Numbers

Posted on by Noah Kiedrowski

Introduction:

AMC Entertainment Holdings Inc. (AMC) is looking compelling in the midst of record-setting box office numbers, a robust slate of movies thus far in 2018 and through 2019, strong consumer demand, dividend yield of over 5% and accelerating revenue and EPS growth. AMC’s stock price is nearly 30% below its 52-week high despite coming off record first quarter numbers across all categories. Additionally, AMC is reengaging the consumer via digital, mobile and loyalty program options, reformatting theaters to enhance the user experience and international expansion augmented by a healthy share buyback program. AMC will report its Q2 earnings in early August, and the stock looks very attractive considering its depressed valuation, industry strength forecasted through the remainder of 2018 and through 2019 coupled with a slew of company initiatives to drive the consumer experience.

2018 Record-Setting Box Office Numbers:

Major theatrical releases continue to break U.S. box office revenue records thus far in 2018. Yearly box office revenue already topped $6 billion outpacing 2017 by 10% and the 2016 record year by 11%. Thus far 2018 has posted the second largest first quarter and record second quarter at the box office. U.S. box office revenues hit a record $3.3 billion in the second quarter due in large part to Disney’s (DIS) “Avenger’s: Infinity War” and “Incredibles 2” with domestic grosses of $673 and $440 million, respectively. The previous record was set in the second quarter of 2015 when the domestic box office drew $3.1 billion in revenue. It’s noteworthy to point out that April and June were record months at the box office and revenue from April to June was up ~23% compared to the same period in 2017 ending the second quarter on a strong foot. Furthermore, summer 2018 is currently pacing 19% ahead of 2017 with the third largest summer on record at the same point in the season. Overall, June brought in a record $1.269 billion in domestic box office receipts besting the previous record set in 2013 at $1.246 billion. Translating these numbers into actual ticket sales to normalize for inflation and actual demand, 2018 has seen the most ticket sales since 2010. Ticket sales for 2018 are estimated to be 675 million through the end of June, and compared to the previous two decades this is the seventh largest number of tickets sold and the most since 2010 when the number of tickets sold was 679.7 million. Continue reading "AMC Looks Compelling With Record-Setting Box Office Numbers" →

Earnings Outweigh Trump's Trade Remarks

Posted on by The INO.com Team

Hello traders everywhere. Solid earnings results for the likes of Microsoft Corp. (MSFT) and Honeywell International Inc. (HON) have helped to offset the latest round of tough trade war talk from President Trump.

President Donald Trump said he’s "ready to go" with tariffs on $500 billion of Chinese imports, saying the U.S. has been taken advantage of for too long.

"I'm not doing this for politics. I'm doing this to do the right thing for our country," Trump said in a CNBC interview with Joe Kernen on "Squawk Box" that aired Friday. "We are being taken advantage of and I don't like it."

Microsoft Corp. (MSFT) was rising 2% on Friday after the software giant posted better-than-expected fiscal fourth-quarter earnings on the surging strength of its cloud computing business. Microsoft reported adjusted earnings of $1.13 a share in the quarter, topping forecasts of $1.07. Revenue in the period rose 17.5% to $30.09 billion and also beat analysts' estimates. Driving the earnings beat and the revenue jump in the fourth quarter was a 93% increase in sales for Microsoft's flagship Azure clouding computing business, and solid growth for its productivity and business processes unit, which includes its Office 365 suite, where sales rose 13.1% to $9.67 billion.

Trumps Trade Remarks

Honeywell International Inc. (HON) reported better-than-expected results for second-quarter 2018. Adjusted earnings in the reported quarter came in at $2.12 per share, outpacing the analysts' estimate of $2.01. The bottom line also improved 18% year over year. This upside primarily stemmed from the company's stellar operational performance during the quarter. Revenues of $10,919 million in the second quarter surpassed the Zacks Consensus Estimate of $10,776 million. The top line also grew 8% year over year. Organic revenues improved 6% on an annualized basis. Continue reading "Earnings Outweigh Trump's Trade Remarks" →

Promising Cannabis Biotech Jumps 23%

Posted on by The INO.com Team

Analysis originally distributed on July 11, 2018 By: Michael Vodicka of Cannabis Stock Trades

June 26 was a groundbreaking day for the US cannabis industry.

That’s the day the FDA, the US agency responsible for approving new drug candidates, approved its first-ever cannabis drug.

The first-ever medical treatment derived from a marijuana plant will hit the U.S. market in a few months after regulators on Monday gave the epilepsy treatment the green light.

The Food and Drug Administration approved GW Pharmaceuticals Plc’s Epidiolex to treat two rare forms of childhood epilepsy, according to a statement from the agency. The liquid is made from a compound in the marijuana plant called cannabidiol, a different chemical from tetrahydrocannabinol, or THC, which gets users high.

First Marijuana-Based Medicine Is Approved for Sale in U.S.

This ruling is important for two reasons. Continue reading "Promising Cannabis Biotech Jumps 23%" →