The weekly S&P 500 chart suggests retracement to the new support level at 1370. No major deviation on 13-week Twiggs Money Flow indicates this is merely a secondary correction. Respect of 1350 would signal a primary advance. Long-term target for the breakout is 1600*.
* Target calculation: 1350 + ( 1350 – 1100 ) = 1600
Nasdaq 100 Index similarly displays a bearish divergence on 21-day Twiggs Money Flow but no major deviation on the 13-week indicator, suggesting a secondary correction to the long-term rising trendline.
* Target calculation: 2400 + ( 2400 – 2050 ) = 2750
Bellwether transport stock Fedex, however, displays a stronger bearish divergence, on 13-week Twiggs Money Flow. Failure of support at 88.00 would indicate reversal to a primary down-trend; follow-through below 86.00 would confirm. A Fedex down-trend would warn that economic activity is slowing.
I don’t get it. A drop in earnings of Fedex would indicate a slowing retail section but why would a drop in share price of indicate same?
I would think that a drop in share price would reflect the actual costs of delivering goods due to the price of fuel increase in the last quarter lowering profits. The only companies profiting from fuel costs increase are the petroleum companies and the managers of the speculation funds that are driving up the fuel prices. I think crude oil should be traded like a currency and have the nations that have crude oil set the prices for there area. Maybe that would lower our overall costs in the USA by not importing oil and paying the high price that OPEC suggests. We have enough energy in our country to self support our nation. If we took all the people out of work and set them up to build Solar and Wind we would be a leader in energy production. What the our world needs now is a solar ring around the earth that would produce power 24/7 for all the nations of the world. I am short FedEx just prior to the earnings.
Fox, CNBC, NBC etc…. all are saying we are in the new bull market. I see nothing has changed over the last two or three years except for a couple of stocks have rallied parabolic. Apple, Priceline , Lionsgate, Bank of America and some others. I see this as a great time to short play these stocks in the short term move, 1 or 2 weeks on the short side. But with all the hype on the new bull market run, stock should continue to climb higher later this year. Sell in May and walk away might work this year as it has failed for the past two year in a row.