Sunday 28 February 2016

Glencore showing some strength

Much has been written on the negative side about Glencore. But the stock chart tells a different story. Something has changed!
image1

Yes the web has negative stories of Glencore derivative, CDS and copper bear market issues, true, but why are money manager buying it? Is it the distress asset play? Is it pure short covering? Who knows! This stock is one to watch. A break out to new ground will confirm strength, any pullbacks should be considered from the long side. Of if it is short covering then supply will surely have another go at pushing this stock down to all time low support.

Wyckoff terms
SC = Selling Climax
AR = Auto reaction
ST = Secondary test
SOS = Sign of Strength, ? is to be confirmed.

GLEN



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Wednesday 24 February 2016

Best low stress stock winner over 15 years

Who cares about 20% pullbacks, who cares about recessions, well not this stock!
image1

The Stock : MacDonald's (MCD)

A great performer, WOW! Selling high carb and sugar burgers to the masses is a real winner. However with Price to Sales at 4.2 it should not attract new money. In fact profit taking should be considered.

Look at the low volatility of MCD versus the NYSE Index, this stock should be considered when the wider stock market sinks greater than 20%.

Wyckoff investors love fantastic relative strength and MCD is a winner here. One to watch if 2016/17 is a bad year for stocks. And they even pay a dividend!

The Chart ...


MCD



From Yahoo

Valuation Measures  
Market Cap (intraday)5: 106.39B
Enterprise Value (Feb 24, 2016)3: 122.88B
Trailing P/E (ttm, intraday): 24.16
Forward P/E (fye Dec 31, 2017)1: 19.29
PEG Ratio (5 yr expected)1: 2.30
Price/Sales (ttm): 4.22
Price/Book (mrq): 12.92
Enterprise Value/Revenue (ttm)3: 4.84
Enterprise Value/EBITDA (ttm)6: 13.79


Top Institutional Holders
Holder Shares % Out Value* Reported
Vanguard Group, Inc. (The) 55,214,277 6.01 6,523,014,629 Dec 31, 2015
State Street Corporation 44,446,859 4.84 5,250,951,877 Dec 31, 2015
Capital World Investors 30,881,418 3.36 3,648,330,691 Dec 31, 2015
BlackRock Institutional Trust Company, N.A. 24,713,706 2.69 2,919,677,202 Dec 31, 2015
Bank of America Corporation 17,755,749 1.93 2,097,664,169 Dec 31, 2015
BlackRock Fund Advisors 16,792,490 1.83 1,983,864,751 Dec 31, 2015
Wellington Management Company, LLP 16,625,667 1.81 1,964,156,282 Dec 31, 2015
Bank of New York Mellon Corporation 16,394,515 1.79 1,936,847,985 Dec 31, 2015
FMR, LLC 15,956,460 1.74 1,885,096,168 Dec 31, 2015
Northern Trust Corporation 12,869,997 1.40 1,520,461,432 Dec 31, 2015





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Wednesday 17 February 2016

Power of Mean Reversion with the Aussie ASX

Many use this method of price estimation for the long and short term price targets.
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Previous post: Australia to enter a very sad period

The site would bet that that Charles Nenner use a similar formula to make the Dow 5000 call. As you can see statistically it is a very accurate formula.


ASX Mean


A reminder of the AORD as at 2013.

AORD elliot




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Friday 12 February 2016

Power of Mean Reversion

The power of reverting to the mean. Life time buys, or miserable bust! The rubber band does smack back eventually!
image1

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Thursday 11 February 2016

SP500 Gann Angle Update

Gann Angles and Cycles guide the market like road signs! Read the Mark Twain quote in the image, are you one of the fooled and still holding your FANG (Facebook,Apple, NetFlix and Google) portfolio!
image1

Here is the latest view.

Gann Angles


SPY1



Hurst and Fixed (Kitchin Cycles)

SPY2




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Friday 5 February 2016

Value Investing with help from Wyckoff Logic

Buying something at good value is a good approach, however it is another approach to know when to enter and exit the market, enter Wyckoff logic.
image1 If You 'know nothing' of Wyckoff logic is a good time to start.

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