Oil is bouncing off the $40 per barrel level again. This is the third time it has hit this level and bounced. In terms of technical support, this would be known as major support level. One interesting factor that should be noted as well, in August 2015, oil saw the high thirties briefly. This low remains intact and has not yet been violated. As long as oil holds the $38.25 pivot low, oil stocks should be looked at as long term bargain investments. [more]
The NASDAQ 100 is at a major pivot point on the charts. Based on where we close today (above/below), will determine whether the technology stocks bounce or collapse lower. Should the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) close below the trend line revealed in the chart below, the downside target is $109.85 within days. Remember, this level is important only on a closing basis. Intra day it means nothing. In other words, we are below during lunch today, but can they, will they rally it back above by the market close today at 4pm ET. [more]
After Friday's Non Farm Payrolls shows an increase of 271,000 jobs, almost all economists are expecting a the Federal Reserve to hike interest rates in December. In addition, hourly income jumped a bigger than expected 0.4%. While all this news sounds like the U.S. economy is roaring ahead, there are troubling signals yet unexplained. A major concern should be performance of many major retailers such as Target Corporation (NYSE:TGT), Kohl's Corporation (NYSE:KSS) and Macy's, Inc. (NYSE:M). These are major retailers, generating a majority of their sales in the United States. The reason 'U.S. sales' are stressed here and under performing Wal-Mart Stores, Inc. (NYSE:WMT) was excluded, is because they have a ton of sales outside of the country, thus the currency issue is the major issue hurting them. What is important is the price action of retailers that generate a majority of their sales in the U.S. Target Corporation (NYSE:TGT), Kohl's Corporation (NYSE:KSS) and Macy's, Inc. (NYSE:M) all do that and their stock performance is horrid. Something is very wrong. [more]
Most analysts are still predicting $20-$30 per barrel oil within months (NYSEARCA:USO). As oil falls today, the charts just simply do not show another 50% downside in the next few months. In fact, the fundamentals are showing downside less and less as well. As more and more rigs go offline in the United States, oil production is coming down. In addition, continued stimulus by China and Europe and a 'stable' U.S economy does not show a dramatic decline for crude demand on the horizon. The supply demand curve is easy to read and it is predicting a stable to higher price on crude. [more]
Leading restaurant stock Chipotle Mexican Grill, Inc. (NYSE:CMG) has been declining since early February 2015. Recently, on April 22, 2015 Chipotle Mexican Grill stock dropped by more than 40.0 points after reporting earnings. Today, Chipotle Mexican Grill stock is trading lower by $2.25 to $641.50 a share. The weekly chart has triggered a bearish inside bar pattern which signals further downside for the stock. Traders should now watch the $610.00 area for major chart support. This is a level where the institutional money will most likely support the equity in the near term.
Many stock analysts have cited that Chipotle Mexican Grill is a healthy alternative to other fast food restaurants. Just yesterday, Chipotle Mexican Grill announced that they would no longer use genetically modified foods (GMO). This could force other fast food restaurant chains to follow their lead.