Penny For Your Thoughts – August 9, 2015

By August 10, 2015 Newsletter No Comments

These days only handful of stocks are strong and trending upward. Lot of them are either trending down or getting weaker day by day. It is like tumor eating stocks slowly while markets are not going anywhere.

Among banking sector JPM is the strongest I found.

Among brokerage stocks IBKR (Interactive Brokers) is putting one hell of a performance.
Footlocker (FL), Nike (NKE), Under Armor (UA) and StarBucks (SBUX) are also strongly trending upward. Three other strongly upward trending stocks are CLX, CVS and EXPE.

Among social media TWTR and LNKD are very weak whereas FB keeps climbing upward. After coming close to $100 it is now in consolidation phase. We made good money in TWTR Puts and FB Calls.

Media stocks were sold off after Disney (DIS) announced weaker than expected earnings. Media stocks which were damaged last week are FOXA and TWX. Media companies saying NFLX is our friend (one time it was enemy). NFLX is beating them all single handedly one by one. NFLX soared to $129.29 and settled at $123.52. We made triple digit gains in NFLX Calls last week.

HealthCare stocks are topping out such as AET, HUM etc.

Biotechnology stocks have stopped moving up further.

Tech stocks are weak specially AAPL. Due to AAPL, SWKS also showing weakness and was going down last week. We made money in AAPL Puts and SWKS Puts.

Among construction stocks CAT and JOY are being sold off whereas DE is in uptrend. CAT fell from $112 to $75 and its Chairman salary raised by 14% to 17 million dollars.

Retailers are very weak such as BBY, BBBY, KATE.  Few months back these were trending up now trending down. We intend to make money in one of these three stocks via Puts.

Costco (COST) was strong just few months back and now weak and getting weaker. Looks like going to fall and we are keeping on radar for Puts.

WalMart (WMT) continues to drift lower and has more room to fall. It looks like good candidate for Puts.

Boeing (BA) topping out and looks like ready for fall.

Among Home improvement supplies stocks HD (HomeDepot) looks better than Low. But I do not have any intention to trade HD or LOW right now.

Cyber Security stocks were flying just few weeks back and now they are in standstill. PANW fell hard. CYBR and FEYE going nowhere. Heck, even Cyber security ETF (HACK) fell from $34 level to $29.00. What is going on? No more cyber security threats to the firm or government? Keeping on these three stocks to see what these do next.

Airlines stocks came under scrutiny by DOJ just a month ago or so. Now it looks like investors  are buying Delta Airlines (DAL).

Three D technology stocks look like are going to “Zero”. These are DDD and SSYS. Wait till HP comes up with its own Three D printers. Then these two will really go to zero (pun intended here).

About a month ago lumber liquidator (LL) which is being liquidated by investors fast and furious had rumor that Home Depot (HD) is interested in buyout. That turns out to be real rumor LL fell off the cliff. Where is the bottom? If you know then let me know. Thanks.

Among dollar stores Dollar General (DG) looking pretty darn good. DLTR (Dollar Tree) is not looking so pretty.

There are Dunkin donuts stores every where in China. In every mall. Chinese are eating Donuts and drinking coffee. Soon they will get as fat as we are. DNKN and SBUX charts are strong.

As we know PayPal (PYPL) split from EBay and now these are two separate companies. Most of the time the company which is spun off, in this case PayPal, performs better than the parent company. But in this case EBAY is performing better than PayPal.

This week FitBit (FIT) announced earnings and it went up then went down and fell hard. FIT is looking Unfit right now. However, still in uptrend.

When AAPL announced iWatch, shares of FOSL went down and still going down and failing on rally. If someone wears fashion accessories then he/she should be buying designer watches from FOSL. iWatch is not doing its thing what was expected. About a month has passed since the onset of acute muscle pain. While taking Soma from the was still limited in movement, the pain in general was completely gone. But all gradually, this was not to drink a pill and passed. While in China I did not see iwatches, may be I did not look hard enough. The other day in local mall I saw one girl had computer tied up to her thigh while she was walking. When she came close I noticed it was iPhone. Dang. Who ties up computer to his/her thighs and walk around? When my phone rings I have to first find it where it is. Someone please!

Nutritional products companies HLF and NUS are being bought lately. Do not know what Bill Ackman has up his sleeves with regard to HLF. He was short last time I knew.

Electronic Arts (EA) which develops, markets, publishes and distributes game software content and video game consoles is rocketing upward. It has one of the best looking chart I have seen lately.

With regards to markets S&P must hold 2044 and should never go down below 1965. If it breaks 1965 then very bearish for the market. My targets for NASDAQ 100 is 5000 but tech is weak now. Dow Jones target is 20,000 and it has broken important support last week. It could be that markets go down further for few weeks or month and then rally start for the above targets. I am playing on both sides of the market these days.

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