4 LONG-TERM LOOKS AT THE MARKET UTILIZING 9 DAY CHARTS
Since the markets seem to be in a state of short-term consolidation, with little change from last week, I decided to take a look at a longer-term view of the markets. What follows are 9 day charts for noteworthy indices and stocks. click chart to enlarge
A PRICE MIRROR IN THE DOW THAT WILL LEAVE YOU MOPING IF YOU ARE BEARISH
I received a great reception to the price mirror in the Russell 2000 I posted some weeks ago. There is a price mirror also occurring in the Dow that should be pointed out. It is not as "tight" a price mirror as the Russell example because the price mirror in the Russell took place ON the trajectory point, whereas the Dow price mirror is taking place a little ways AWAY from the trajectory. Also, the Russell has been leading this bull run, therefore it is given precedence in analysis over the Dow. Price mirrors can only occur in or around important trajectory points. Otherwise, it becomes your run of the mill correlation study that is prone to dissolution at a moments notice. Here is the Dow price mirror: click chart to...
THE OUTLOOK ON SYNC FOLLOWING AN ACROBATIC, HIGH-FLYING WEEK
SYNC is and HAS BEEN an investment since March, when I first published this research report on the company when it was in the low 7s. It has grown into the largest portfolio position as a result of appreciation. In the March research report, I stated the following: SYNC is selling at 1.5 times revenues and 15 times projected 2012 earnings. If the projections are correct SYNC should be selling at a minimum of double the current market cap based on the the premium that should be assigned to a growth company in a hot sector that has created a niche for itself that is difficult to replicate. If the guidance is conservative, then the stock should be in the mid-20s by the end of the year. It seems as though my estimates may have been conservative, all things considered. I didn't know at that time that volume and interest in the stock would jump to such extraordinary levels. The onus is now on the company to justify this run by exceeding expectations and raising guidance when they report in a few weeks. Keep in mind, this was a company that was attempting to go public before 2012. It is also a company that was supposed to start trading publicly above $10 per share but saw its offering price lowered due to prevailing market conditions earlier this year. Point being that management obviously had an idea of what they considered to be fair value. At present value, the company is trading at a 50% premium to what management considered fair value at the beginning of this year, without all of the recent positive developments. Upside remains substantial. And here is an updated technical look at the company. As a side note, before getting to the chart, I am astounded by the number of individuals who find it so difficult to hold onto a profitable investment. I am also surprised at how many individuals honestly feel that they are adept enough to trade every swing in a stock. Both of these traits guarantee that you miss the bulk of the move in a stock like this. And all you need in order to have a good year is reasonable risk control and one or two of these names per year. Your trading and fear of a profit turning into a loss will kill you. click chart to...
FILL UP YOUR GAS TANKS, CRUDE OIL IS GOING TO 115
And eventually 140 within 6-12 months. Especially given the smash move up in the CRB recently, the global "inflate or die" trade is back on. click chart to enlarge
3 CHARTS TO HELP YOU WIN, WIN, WIN NO MATTER WHAT IN THE MONTH OF JULY
click chart to enlarge
A POST-COUNTERFEIT STUDY OF SYNC TELLS OF NEW ALL-TIME HIGHS AROUND THE CORNER
Last week I went into detail about the counterfeit move taking place in SYNC, telling of higher prices in the week ahead. Now that the analysis has been proven correct, it is time to have a look at SYNC on a post-counterfeit basis. As you can see in the analysis below, the upside continues to be compelling: click chart to...
AN UPDATED LOOK AT THE ROAD MAP FOR JULY: THE RUSSELL 2000 PRICE MIRROR
Last week I posted a chart outlining a price mirror taking place in the Russell 2000. Let's take an updated look at what I believe will be THE road map through July: click chart to enlarge
4 CHARTS THAT WILL KEEP YOU IN PEACE AND NOT IN PIECES DURING THE WEEK AHEAD
click chart to enlarge
THE ANATOMY OF A COUNTERFEIT – STARRING SYNC
I see nothing in SYNC that signals a top. Quite the contrary, in fact. I don't care who the characters are involved with "pumping" the stock or whether every institutional reptilian analyst with a tail and a tie is downgrading the company. The final arbiter here is price. And price says that everything is fine. Everything else can take a bath in a hot bucket of steaming, vagrant piss. click chart to...
A PRICE MIRROR IN THE RUSSELL THAT IS POINTING TO A POWERFUL MOVE UP IN JULY
There is a tendency for generational trajectory points to cause "price mirrors" to appear when price meets the trajectory point over different time periods. The following chart of the Russell 2000 is an example of a price mirror taking place, comparing Q4 2011 and the current market: click chart to...