Stock Market Highlights - Week 31
- Uber just beat Facebook's venture-backed company record at over $50 billion.
- WTI was 8/1 at $47.12 and crude oil $52.21. Oil prices continue to decline.
- Frontier Communications to acquire Verizon's wireline operations for $10.54 billion.
- Exxon (52% drop in profit vs. Q2 2014) report worst quarterly result of current decade.
- Expedia Inc. revenue grew 11% Q2 2015 vs Q2 2014 to 1.66 billion.
The Dow Jones Industrial Average (DJIA) closed at 17689.86, which was about a 120 point increase versus a week ago of 17568.53 on Friday, July 24 2015. The market traded below the previously indicated trading range before jumping right back into it. Most certainly this is a choppy market and when there is a choppy market, it becomes a stock picker's market. Pick the right stocks and you will make money versus in an uptrend market most any stock will go up.
At this time it does not look like there are any good risk/reward opportunities to go either long or short on the weekly time frame. Though upon closer inspection, you could argue going short with a stop at the 20 DMA (day moving average) of 17800 is a market play. The fact that it is still trading below the 20 and 50 DMA is a bearish sign.
The S&P 500 closed at 2103.84 on Friday, July 31st 2015 versus a week ago of 2079.65 on Friday, July 24th 2015. This was a 24 point swing upward. Nothing to really write home about here. The chart is in the trading range and trading above the 20 and 50 DMA, which makes it some what neutral. I'd sit and wait to see what happens during the week.
This is a stronger chart than the DJIA and if you wanted to pick stocks that will go up you had a better chance with stocks in the SPX than in DJIA this past week.
The Nasdaq (COMPQ) closed at 5128.28 on July 31st, 2015 versus 5088.63 on July 24th, 2015. The strongest of the three indices is still the COMPQ. After a quick, but painful test of the 50 and 20 DMA, it looks like the COMPQ has resumed its upward trend. However, we'll want to see a break of 5175 to see if that is the case. If not, I suspect range trading similar to that of the DJIA and the SPX to unfold.
Starbucks (SBUX) has been committed to ethically sourcing and roasting the highest quality arabica coffee on the planet. I like to call it the legal drug. Coffee is ridiculously addicting for some people. For some people, they drink Starbucks three times a day and it becomes part of their routine.
My biggest mistake was selling SBUX two year ago as it has what looks like at least doubled in value. In any event, this chart is almost as pure as it comes - a beautiful uptrend following the 20DMA. SBUX recently broke away from that. While I wouldn't be surprised to see it take off, I see a better entry point when it comes back or if it comes back to the 20DMA.
Disclosure: I do not have a position in SBUX.
The information provided on this site is not advice to buy, sell, hold, trade, or invest in any securities. I am not a financial professional. Do your own research before acting on any information provided on this site.
Labels: Weekly Market Reviews