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SHORT TERM POSITIVE STX broke out in July 2016 and again yesterday on the back of stronger than expected earnings. The volume on breakout day (7.8x average daily volume) makes it a very significant move - One of the main invitations to buy the shares even after they have propelled upwards. Yesterday's shooting star could be construed as a bearish reversal, but it...

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FUNDAMENTALLY SOLID - A global leader in its sector - Sector with significant growth potential: Gaming - Consensus very bullish with a BUY recommendation - Average target upside of 30% - Has consolidated some 20% since the historical high - Consolidation partially due to earnings disappointment - Market likely to have since revised estimates down - Positive...

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THE BACKDROP ON FB: A STOCK WE LIKE TO OWN The stock is up some 7.5% since we recommended to buy at $118.69. We are currently in the middle of the up-channel and the stock looks overbought and ready for a consolidation, probably until earnings are out (expected Feb 1). Owners should hold on to positions (see earlier idea "Three times lucky?") Non-holders of the...

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TOO MUCH BAD NEWS IN THE PRICE? All it took was a positive comment from the Pacific Crest analyst yesterday, about the upcoming earnings and the prospects for Karma, to take the stock 10% up in 3x average volume. Short interest has been so high on GPRO and the stock has been so neglected in the recent rally that any marginally positive presumption (not even news)...

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Yesterday's session produced yet another intraday breakout above the previous historical high. This market remains very strong and refuses to go down, notwithstanding a rich valuation and still supported by abundant central bank liquidity. We have had a noticeable "time consolidation" for the past month, where the index did nothing since December 20. This new...

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Since late October, there has been some fear about the long term FB uptrend being compromised. This scenario is increasingly unlikely since the recent, triple rebound around 114. In this context, FB has also been registering higher lows (another positive). Short term momentum pickup looks healthy and deserves to be played. Look for strength confirmation upon close...

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Banks -> Asset Managers -> ?? ==> BROKERS ! SECTOR THEME FOR 2017 ? Main street banks flew first, and we are betting that asset managers will follow (LM, BX). And then what? The logical step down the sector will be the brokers: Smaller, less visible, less owned, yet sure to benefit from the pickup in trading volume of the bull market. They will be equally served...

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Yesterday's close >$106.75 gives breakout signal I was waiting for. Impressive turnaround since last earnings publication (stock up c. +17%): - Mr. Iger's suggested that ESPN worries might be overdone; - This gave the impulse the market was looking for. Currently positive on most time frames. Encouraging 50/200 MA cross (Golden cross). BUY here. Initial target...

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If you own European Insurance, hold on to it! AXA has been breaking out repeatedly, in sequence. Very healthy sign, for a stock which has been showing momentum strength on all time frames. Non holders should look at getting long towards the bottom of the current range, at about 23.50. This should be feasible as the stock is looking slightly overbought at the...

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After a +22.6% performance since late June 2016, this index has been looking stretched and bound for a consolidation. The long and medium term pictures are still looking positive, a testimony of the general bullish configuration we are still in. However, the short term (daily) has been consolidating form an overbought condition. Would not put new money to work...

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THE TECHNICAL SITUATION: BREAKOUT ON Index still in bullish breakout mode, technically positive on most time frames. There is a general view -which I share- that a consolidation is long overdue. "Time consolidation" for now: Index flat while it works away its overbought condition. Valuation currently 50% > historical average... MANY POSITIVE INDICATIONS Still...

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GOOD FUNDAMENTALS Rated buy by analysts with 20% upside Less volatile than the market (Beta 0.89) Sensible valuation (P/E 15.72x, P/BV 2.18x) Healthy growth (5 yr avg revenue +10%, ROE +14%) TECHNICALLY IMPROVING Has been on a downtrend since the historical top of July 2015 Long and medium term technical pictures still negative Has retraced 53% of major move...

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POOR FUNDAMENTALS CONFIRMED Macy's just released disappointing sales figures and guidance. Announcing 68 store closures and the layoff of 10,000 employees. The stock is indicated 10% down to 32.20. Consensus is already quite down-beat on the story, and likely to become even more so. Expect downgrades on the back of the news. VOLATILITY PICKUP EXPECTED The...

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Same story as Macy's: - Disappointing Christmas sales - Disappointing, revised guidance - Double broker downgrade Stock indicated down 15% Wide gap (46-49) to be bridged Volatility should spike accordingly Opportunity to sell 10% OTM puts on the 20 Jan maturity

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Many signs point to the start of a consolidation in the S&P500: - High triangle formation has failed to produce a breakout; - Price has broken the MA20 to the downside; - RSI trend has turned negative; - MACD has turned negative. This confirms my recent view that the main US Equity index has been overbought and ready for a consolidation. Main levels from...

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This thread/idea takes over from the previous one, where we initiated a long position at 55. We assume a long position at $60/share to take into account the call conversions (please see related idea below). FUNDAMENTALS ON THE UP AND UP LULU surprised positively on both top and bottom lines Most notable improvement = Gross margin expansion by 4.2% Fundamental...

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CCL SHOWING DIVERGENT SIGNS: - Long and short term negative trends, while the medium term is still up trending; - Golden cross in mid November suggesting upside on the uptrend; - Multiple rejections at/above 53 suggesting more downside; - Down trending MACD and RSI; - Mildly positive consensus (closer to a HOLD); - Some 10% upside on the consensus target price; -...

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HAWKISH YELLEN Rate hike confirmed as expected 3 hikes this year instead of 2 --> Faster yield curve steepening than expected SOME EXPECTED THEORETICAL OUTCOMES Stronger USD --> Bad for exporting companies (negative for equities) Higher rates --> Bad for equity valuations (negative for equities) Higher inflation anticipation --> Good for inflation hedges...