Morning Comment: Netflix (NFLX) at a Key Technical Juncture


We continue to get a lot of earnings reports…so although the broad stock market did not do much yesterday, some individual stocks did see some big moves. One of those was Netflix (NFLX)…which fell over 3.5% after they reported yesterday. So where does this leave the stock…and what should investors do right now? Well, sometimes the best thing to do on a specific stock is nothing…and we think this is the case with NFLX at the present time. However this “do nothing” strategy will almost certainly change pretty quickly. The reason we say this is because NFLX is at a key juncture on the technical side of things.

The stock is approaching its 200 DMA. The last time it touched that level (back in very late December/early January), it bounced nicely. However, we’d also point out that when NFLX broke below that line back in July, it began a decline that took the stock down by more than 20%.

Therefore, if NFLX breaks below that line again in any significant way, it’s going to be quite negative for the stock. HOWEVER, if it can hold that line once again and bounce, it should be very positive for the stock…because it is getting close to seeing a “golden cross.” Since the financial crisis, NFLX has seen five other “golden crosses” and they have been followed by rallies of 8%, 21%, 103%, 107%, and 35%. Thus, since a bounce off the 200 DMA would almost certainly coincide with a “golden cross,” it should be very bullish for the stock.

In other words, there is no need to make a big bet right now. The next substantial move should be a very big one, so there is no need to be “early” in the trade…especially since it is ...

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JNJ Testing Key Resistance


The healthcare group continues to do well…and the recent rally has taken one big cap name from this group up to a key technical juncture: Johnson & Johnson (JNJ). Back in the fall, JNJ was able to successfully test its ...

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Morning Comment: How Far Can Liquidity Take Us?


  • New uncertainties have developed in the market place.
  • However, the last round of “uncertainty” didn’t cause any problems, so complacency is high.
  • This rally is liquidity fueled, not fundamentally fueled (just ask Drunkenmiller & Tepper).
  • The Fed knows they’re creating ...
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Wells Fargo (WFC)....Traders should consider cover shorts.


In our "Morning Comment" on Friday morning, we highlighted WFC...and turned bearish on the stock. Since then it has fallen over 8%.

That's a very big move over just three trading days, so any short-term traders who might ...

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THE WEEKLY TOP 10


Every weekend, we write a piece we call "The Weekly Top 10". However, this is NOT a regurgitation of Barron's or the weekend edition of the WSJ. Instead, we try to cover the issues most people are not focusing ...

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Are the Biotech Stocks Due For Another Leg Higher?


Back in late October, we turned much more bullish on the biotech sector when the IBB biotech ETF broke back above its summer highs. The IBB rallied 16% over the next two months…outperforming the S&P 500 (which has rallied 7 ...

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Does an Overbought S&P 500 Index Matter???


We have stated several times in recent days that the broad stock market is overbought. However, we have not shown WHY we believe this to be true. Our apologies. Here is a chart that supports our case:

The S&P 500 ...

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Mornin Comment: Much more near-term rally in stocks doubtful....Gold....Tesla.


  • Yesterday’s bounce was quite understandable, but a lot of upside follow-through near-term is doubtful.
  • The situation with Iran has been pushed to the sidelines…which is obviously positive, but it’s far from over.
  • Besides, the stock market is overbought…and earning season ...
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Morning Comment: Investors Should Still Keep Some Powder Dry.


  • No casualties means President Trump will not escalate the situation in Iraq/Iran further at this time.
  • However, the bounce could/should be limited…because the decline was very muted.
  • There are still a lot of unanswered questions…with earnings guidance & ...
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Morning Comment: HD's Chart Now Looking Dicey


In our full edition of the "Morning Comment," we touched on the following subjects:


  • Most people liked yesterday’s midday bounce. We did not. It shows there’s too much complacency out there.
  • The market is overbought after its big 2019 & ...
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Morning Comment: Iran & North Korea are Connected.


  • Iran is one of the reasons the U.S. does not want North Korea to become a nuclear power.
  • Since N. Korea is connected to the Iran issue, so is China.
  • These new uncertainties should keep oil elevated for longer ...
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Morning Comment: Update on the FAANG Charts


Morning Comment: Update on the FAANG charts.


  • Yesterday’s decline was meaningless. Today’s action should be equally meaningless.
  • The FAANGs continued to be leaders early in 2019, but lost that status in the spring.
  • However, those FAANG stocks have regained A ...
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