IAG – Time to Sell Call Options
We were buyers of IAG from $5.50 to $5.75 and with stock now trading at our price target of $6.00+, we look to sell call options to boost the return.
XJO & Dow Jones – Index Chart Update
US stocks pulled back from Wednesday’s records while the dollar strengthened on positive US data and growing expectations the Federal Reserve will soon raise interest rates.
XJO is under pressure from both resources and banking stocks.
Ansell – Buy Signal
Our Algo Engine triggered a buy signal on ANN a few months back when the stock was last on the $21 support level.
With the stock retesting this level and increased buying interest occurring, we again are willing to look at ANN with a tight stop-loss under the $21 support.
XJO – Chart Update
The XJO is creating a higher low formation with new support at 5640.
Algo Short Signal – Time to Take Profit
In July last year, we highlighted one of our preferred US equity short signals on the blog. Target was triggered by the Algo Engine as a short signal on the 26/07/2016 at $77.
Target is now trading $57.
Walmart has recently been triggered as a short from $72.80.
US Banks – Breakout
After consolidating from mid-December to mid-February, we’re now seeing US financials breakout again to the upside.
Using Goldman Sachs as a leading indicator to US financials, we form a view that it’s best to stay with the upside momentum until we see a downturn in price which takes-out the recent minor higher low at $245.
Whilst we struggle to see the EPS support for US equity valuations, momentum remains very strong. March quarter earnings to be announced in 4 weeks may provide a reason for investor’s buying enthusiasm to pause.
Newcrest – Algo Signal
On the 8/2/17 our Algo Engine generated a short signal in NCM at $23.95. The stock is now trading $21.50 and the short term momentum indicators continue to track lower.
Value Emerging in AMC and BXB
Following the sell-off in both AMC and BXB , we now are looking for buying support at or near the current levels. Our short-term momentum indicators have not yet turned positive but we’re likely getting close to valuation support, where increased buying will occur.
We see value in AMC at $14.00.
We see value in BXB at $9.25
XJO – Chart Update
The XJO is now off 158 points from the 16/02/17 high of 5833. The resource sector has been the main drag, in particular, BHP and RIO.
Chart – BHP
Harvey Norman
Harvey Norman announced a record H1 result after property valuations and strong furniture and appliance sales lifted the company’s net profit by 39% to $257.3 million.
Underlying pre-tax profit rose 20.6% to 290.49 million, which is the highest first-half result in the retailer’s 30-year history.
The company declared an interim dividend of 14 cents (fully franked), which is up 1 cent on the same time last year.
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