Hello MarketClub members everywhere. The buzz around Wall Street this morning is that Apple is going to buy Netflix. As you probably know, Apple has a huge cash hoard rumored to be somewhere around the $200 billion level. Netflix is worth perhaps 40 or $50 billion, so it doesn't take a lot of imagination to see how a deal like this could work. Apple wants to move into the content and distribution space and Netflix might just be the vehicle to do that.
Apple Inc. (NASDAQ:AAPL): Here is the rundown on Apple, several days ago Warren Buffett purchased Apple stock as he thought it was undervalued. Based on the Trade Triangles I'm on the sidelines in having taken a small loss of $3.39. Technically the $104 level should present a major barrier for Apple. One thing to remember, this is only a rumor and it is not supported by a strong technical picture. The biggest concern I have is the current lack of innovation by the company. In my opinion, without innovation a tech company like Apple is going to have a hard go of it. Continue reading "Is Apple About To Buy Netflix?"→
Hello MarketClub members everywhere! Not sure if you live in the rain soaked mid-Atlantic states, but enough already with the rain! It is depressing. The reason I bring this up is the erratic and somewhat depressing action in the stock market.
On Tuesday we watched a massive rally in stocks and everyone was singing happy days are here again. Yesterday, reality and gravity came into the market and took away practically all of Tuesday's gains.
As I said on Monday when I talked about "The Next Big Swing", I believe that the markets are putting in a major top as both the S&P 500 and the NASDAQ have all flashed red weekly Trade Triangles indicating to be out of the market and on the sidelines.
Apple Inc. (NASDAQ:AAPL)
So sad about Apple, here is a stock that was the "apple of every investors' eye" and now this once super stock is now in the dumpster. The question is, with all the Trade Triangles red and pointed lower for Apple, is it just a false signal or is this really the start of a bigger problem? I believe that Apple has some serious hurdles ahead and as the weeks and months pass these problems will come to the forefront.
The biggest problem for Apple right now is that it is not seen as an innovative growth company. Can anyone say "Nokia" and not wonder what happened to this once-leader in the mobile phone market? The next problem Apple has, and this could well be its number one problem, is perception. Apple is just not perceived as a "cool" company anymore. Apple's third problem is expanding its market for its cash cow iPhone. It very much looks like China wants to put the kibosh on any further Apple iPhone sales as they really want to sell their own smart phones (so much for free trade).
The next big psychological level for Apple is $90.00. Once we see around $89, you will see many more investors throw in the towel. On Thursday the 28th of April, Carl Icahn stated on CNBC that he no longer owned any Apple stock. MarketClub's Trade Triangles exited Apple six days earlier at $104.88. I am guessing Mr. Icahn exited around the same time before he made his big announcement on CNBC.
Yelp (NYSE:YELP) is the go-to app for reviews on restaurants, shopping, local services and the like.
Earlier this year in March, Yelp was trading over $100 a share and looked on its way to the moon. However, just the reverse happened and Yelp lost half its value by early June. Since that time, the stock has recovered and traded as high as $80 in early July.
There are several reasons why I like this stock right now and they're all technical. I have no inside knowledge of what is going on inside Yelp, but I can say that the technicals are looking very positive for the stock. Today, the weekly Trade Triangle kicked in, indicating that the intermediate trend is now inline with the longer term uptrend.
1. All of the Trade Triangles are positive and displaying a +100 Chart Analysis Score.
2. There is a monthly Trade Triangle in place.
3. Pivot Point - measures the move to $85 a share.
4. Weekly Trade Triangle kicked in today at $76.49.
5. The RSI indicator is trending to the upside and is over 50.
6. The MACD indicator has recently turned up.
Just remember, there are no guarantees in trading, even with all the positive indicators. I'm looking for Yelp, Inc. (NYSE:YELP) to trade back to the $85 level in the near-term. As always, please remember to use money management and stops that work for your own trading strategy.
Good luck and every success trading in Yelp shares, Adam Hewison
I was looking over the charts this past weekend and noticed one stock that I wanted to bring to your attention. There are two reasons why I think this stock is worth a look.
1. There was a new monthly Trade Triangle signal on June 27th at $48.04.
2. I like the formation. This chart has a "W" formation, which normally occurs at the bottom of a move and signals a reversal. In this case, it would look as though once we close over $48 a share, we could see a quick pop up to $50.
The stock I am referring to is Coca-Cola Enterprises Inc. (NYSE:CCE), traded on the New York stock exchange. This is a large company and has been around for a long time. While not usually considered a hot stock, the formation is undeniable. As with any position, you should always be using money management stops.