EchoAlphaBravo

EchoAlphaBravo Updated 

The market action this week favored bulls, with SPX taking out resistance at 2743, a level that had rebuffed rally attempts in previous weeks. Strong economic data kept bidders involved throughout the week and the index closed near the top of the week's range, which in turn bodes well for next week. The next resistance to watch is at 2800-2802, a zone derived...

EchoAlphaBravo Updated 

Shares of RAD have been brutal to own, but that may be turning around. After breaking a year-plus downtrend, shares have now moved above their 200 day moving average. With potential takeover catalysts, high short interest (15%), and improving technicals, there may be some room to run. I'm long shares and calls, both of which may be added to if this move is sustained.

EchoAlphaBravo Updated 

Shares of MAR have finally pulled back to their 200dsma, providing an excellent entry point in to this best-in-breed hospitality chain. The aforementioned 200dsma is at $131, a level that coincides with a previous breakout level that has been tested - and held - on three different occasions. That zone is $128-131. Fundamentally, the company continues to...

EchoAlphaBravo Updated 

The bears relentless selling doesn't appear to be abating. Volume remains weak, supports are being broken with ease, but there's yet to be a capitulation. It seems bulls have left the party altogether. As such, the downside prevails and I'm targeting $4200-4450 as the next destination. We may pause at round-number support at $5,000, but technically the price is...

EchoAlphaBravo Updated 

Shares of General Mills (GIS) have been terrible to own lately. But they're finally finding support at a major support level (breakout from 2012-2013) at about $41. They recently acquired Blue Buffalo Pet Foods, which should help drive growth to the bottom line, as the humanization of pets continues to accelerate. At current prices, it's also sporting a solid...

EchoAlphaBravo Updated 

Shares of P look ready to pull back, having broke the upward trend line from the gap higher on the last report. The open gap aligns closely with the 200 day moving average at just south of $6. Shorting this thing via July $7.5 puts.

EchoAlphaBravo

I posted a while back that the "rising rate" mantra may not be as sure as most think. To recap my view in brevity: Rates are up against a multi-decade long falling trend line, so it'll take more than a few sessions or weeks to overcome. I do believe that rates will be higher if you're looking out years or even decades, but shorter- to intermediate- term, the...

EchoAlphaBravo

Shares of KORS appear to be breaking out to the upside from a bull flag formation on the weekly chart. Previous resistance at $70 should act as support to confirm. Longer-term resistance overhead at $75, the 61.8% retracement from the all-time highs north of $100 to the subsequent lows at $33. The target from the flag is around $82-85, which would coincide...

EchoAlphaBravo

I just was surfing charts and wanted to point this out, as the main theme from the media and analysts is that yields are going up. Period. I agree in that I think rates will be higher if measured in years or decades, but shorter term, they are at stiff resistance. This monthly chart going back to the mid 1960's has a very clear downward trend line that we...

EchoAlphaBravo

A few sectors are signaling troubles ahead, with their 50 day MA's crossing below their 200 day MA's. This chart picture shows SPY (upper left) as a broad gauge of market action. It has yet to experience the "death cross." However, the industrial stocks measured by XLI (upper right), materials stocks measured by XLB, and financial stocks measured by XLF have...

EchoAlphaBravo

Gold has been a terrible investment over the past several years, and while bulls expect inflationary pressures to put a bid under the metal, it doesn't appear they're winning. Looking at GLD as a proxy, we've just violated major support. How major? We've broken the trend line going back to GLD's inception in the mid aughts. This monthly chart shows that we could...

EchoAlphaBravo

The QQQ is rolling over, as are most indices. Almost every oscillator is signaling a sell, as is the failure at trend support. Shorting and expecting a retest of the lows, or at least about $160-163.

EchoAlphaBravo

Every time I turn on CNBC, FBN, or the like, I hear a pundit or analyst pounding the table to "buy the banks." The go on to ramble a spiel about low valuation rations (P/B, P/E, P/FCF, etc), rising rate environments, yield curve inversions, and other reasons that they should outperform the markets going forward. But who's biting? A quick glance at the SPDR...

EchoAlphaBravo

I posted about this a while back, so wanted to reiterate given the developments abroad. The HSI appears to have formed a double top (with a potential bull trap, too) and I suspect selling pressure may escalate. A decisive break in price above the top would need a few weeks of closing above to invalidate the pattern. Given the negative catalysts surrounding China...

EchoAlphaBravo

Shares of FB have broken out. Last week, they took out the previous high of $195.32 and then successfully retested the level the following day. Today, bulls continue to validate the breakout, with shares flirting with the $200 level. I expect continued strength in the name, as valuations are reasonable and fundamentals remain strong. Given the lagging performance...

EchoAlphaBravo

Just wanted to look back on some names I've suggested and see how they're performing. The yellow line marks the day I posted a buy suggestion. For reference, I used the closing price of the day I posted to buy (closing price on the yellow line) and then the most recent closing price (Friday, 8 June 2018) to calculate performance.

EchoAlphaBravo Updated 

Shares of REVG are at all-time lows and seem to have a favorable risk/reward ratio. It's trading at about 14x 2017 earnings, and under 10x estimated 2018 earnings. They also have a 100% beat record (over 5 quarters as public company), so estimates may be conservative and imply an even greater value. The PEG ratio is a mere 0.4. Revenues are growing at about...

EchoAlphaBravo

The SPY (SPX) is giving some mixed messages from various indicators. While the general feel seems to be a grind higher, it's important to note that we have stayed under the 61.8% retracement of the correction even after several attempts to push thru. Also, not depicted on this chart, but we failed to maintain the 100 day s.m.a. (I'll try to add that chart in the...