Sorry, but this content is restricted to our members.
Please login with your account or register for a free trial. If your trial has expired, then you may renew it here.
If you are having an issue with your account, then please get in touch with us.
Nike is expected to report EPS of $0.18, down 70% from the prior quarter. Revenue down 20% to $8bn.
We see Nike as a shorting opportunity coming into the June quarter earnings result.
The above post was made on the 29th May and since then, the US market has pushed higher. With retail likely to fall short of earnings estimates, we remain cautious heading into next month’s earnings.
The below chart shows the updated price action in Nike, and of importance, the close below the momentum indicators.
For regular readers of our blog and viewers of the Monday night webinars, you would be very familiar with the earnings table below.
The S&P500 index is trading at an assumed $170 of earnings per share for FY21 and $180 of EPS for FY22. We feel these targets are too optimistic and the range could be more like $125 to $150, with a slower rate of recovery into 2022.
The close on Thursday and Friday now has the major US indices trading below our short-term momentum indicators.
Our target for the S&P500 is 2500 support and 3300 resistance.
Berkshire Hathaway is under Algo Engine buy conditions and is a current holding in our US S&P100 model portfolio.
We see the recent sell-off from $230 down to $160 as an opportunity for long term investors to accumulate the stock.
Investor Signals can establish a broking account for you to buy US stocks. We can advise and execute the orders on your behalf. For more information on our US broking account, please call 1300 614 002.
A strong performance from Amex and ConocoPhillips overnight, both names are current holdings in our US managed fund.
We continue to watch the NASDAQ for a break below the current uptrend, at which time we’ll increase index hedging.
The recording from Monday’s webinar is available below:
Raytheon, (listed on the New York Stock Exchange) is now under Algo Engine buy conditions and was added into our US S&P100 model portfolio, prior to last week’s earnings result.
Raytheon is a major U.S. defense contractor and industrial corporation with core manufacturing concentrations in weapons, military and commercial electronics. In 2020 the company will merge with United Technologies and we anticipate the merger will help unlock value for shareholders and underpin the growth story for many years to come.
The stock trades 19x earnings and a 2 % dividend yield. A combination of the upcoming merger and the large scale of future share buybacks has Raytheon on our “high conviction” buy list.
The NASDAQ index is under Algo Engine buy conditions following the higher low in May. Since the signal was generated, the index has rallied 15% and remains the only major index still under buy conditions.
The instrument to take advantage of the above trade is best represented in the Betashares Nasdaq 100
Global markets are in the early stages of rolling over, as a combination of weaker data from China, Europe and the US weighs on investor confidence.
The U.S. economy added just 20,000 jobs last month, marking the weakest month of job creation since September 2017. Economists polled by Dow Jones expected a gain of 180,000.
Data out of China showed its exports slumped 20.7 percent from a year earlier, far below analyst expectations and wiping out a surprise jump in January.
The European Central Bank slashed its growth forecasts for the euro zone and announced a new round of policy stimulus.
As readers will be aware, we’ve been tracking the XJO to break the 10 day moving average as a confirmation of the short-term indicators supporting the longer-term Algo Engine “sell” signal. If we apply the same analysis to the Dow Jones, we see a more advanced break in price action.
Caterpillar was removed from our US model portfolio back in September last year. The lower high formation was punctuated last night following the weaker-than-expected quarterly earnings guidance.
The company pointed to tariffs and a slow down in China as major factors in its disappointing fourth-quarter result.
Revenue for the quarter was up 11% to US$14.34bn and adjusted earnings came in at US$2.55 per share.
Caterpillar said it now expects 2019 profit to increase to a range of $11.75 to $12.75 per share.
The results were largely below street estimates, which explains the 9% sell-off in the stock.
We’ll wait for the next Algo Engine buy signal before building a new position in CAT.
Level 17 Chifley Tower
2 Chifley Square
Sydney, NSW 2000
1300 614 002
Investor Signals Pty Ltd
ABN 44 143 555 453
Or start a free thirty day trial for our full service, which includes our ASX Research.