Advisory | Investor Signals

Google Shares Drop On Lower Income

Posted on July 25, 2017 | by Todd | Leave a Comment

Shares of Alphabet, parent company of Google, are down over 3% to $967.00 in aftermarket trade.

After the close of trade today, the tech giant posted a 27.7% drop in quarterly profit compared to a year ago.

The company beat expectations on both the top and bottom line with earnings of $5.01 per share on $26 billion in revenue, compared to earnings of $4.49 per share on $21.5 billion a year ago.

However, a dip in net income from $4.88 billion a year ago to $3.50 billion this quarter offset the better-than-expected earnings.

Our ALGO engine triggered a buy signals on Alphabet on June 30th at $908.00. We will look for initial support at or near the $945.00 level.

Alphabet (Google)

Algo Buy Signal – Sonic Healthcare

Posted on July 25, 2017 | by Leon Hinde | Leave a Comment

On 12th July, our Algo Engine triggered a buy signal in Sonic Healthcare, at or near $22.20.

We see this as a level of price support and our base case is that Sonic trades sideways, at or near the current price.

Sonic reports earnings on the 16th of August and we expect underlying EPS growth of 8%, which will support a forward dividend yield of 3.8%.

When combining a covered call option, we’re generating 10 – 12% cash-flow per year.

Algo Buy Signal – Seek

Posted on July 25, 2017 | by Leon Hinde | Leave a Comment

Our Algo Engine triggered a buy signal in SEK back in mid-June, when the stock was trading at $16.15, since then the price action has rallied to $17.50.

We consider the current price level as full value and investors should consider either taking profit, or selling covered call options.

Seek reports their earnings on the 16th of August and the market is expecting underlying EPS growth of 10 – 15%, delivering NPAT of $192 million.

Algo Sell Signal – Bank of Queensland

Posted on July 25, 2017 | by Leon Hinde | Leave a Comment

Our Algo Engine triggered a sell signal in BOQ at or near $12.15.

The price action is making a “lower high” formation and the short-term momentum indicator is rolling over.

NCM Meets Gold And Copper Output Targets

Posted on July 24, 2017 | by Todd | Leave a Comment

Shares of Newcrest have opened 1% higher at $19.80 as their quarterly production report reflected a uptick in production going into the second half of the year.

The company said that its Q4 gold production fell 7.7% from a year ago after the closure of its Cadia mine, but overall output was just enough to meet its full-year target.

Overall production of 551,815 ounces in the quarter helped the gold miner reach an annual output of 2.38 million ounces, which is at the lower end of their 2.35 to 2.60 million ounce forecast.

NCM also posted copper production of 83,900 tons, which is within the guidance of 80,000 to 90,000 for the year.

With spot Gold now trading at one-month high of $1255.00, we expect NCM to move back into the mid-June range of $21.50 to $21.75.

Newcrest

IAG – Price Retracement

Posted on July 24, 2017 | by Leon Hinde | Leave a Comment

As IAG share price retraces from the recent $7.00 high, investors should expect our Algo Engine to generate a buy signal.

Buying support is likely to develop in the $6.25 to $6.50 range.

Chart Update – XJO

Posted on July 22, 2017 | by Leon Hinde | Leave a Comment

The S&P ASX 200 index finished the week down 0.7%. The best performer was the Property Trust sector, up 0.9% and the worst performer was the Telecoms sector, down 4.1%.

The XJO continues to trade below the 5836 “lower high” formation, as indicated on the chart below.

VIX Index Posts All-Time Low

Posted on July 22, 2017 | by Todd | Leave a Comment

The VIX Volatility Index was introduced to investors in 1993. Today the index posted an all-time low weekly closing price of 9.31.

The price of the index reflects the market’s expectation of 30-day volatility in put and call options on the SP 500 stocks. It’s a widely used measure of market risk and often referred to as the “investor fear gauge”.

A price on the VIX greater than 30.00 is generally associated with high market volatility driven by investor uncertainty, while a value of 20.00 or lower corresponds to complacency in the market.

As a point of reference, the VIX has not posted a closing value above 20.00 in over 8 months.

With the SP 500 index trading near all-time highs on declining volume, it’s reasonable to expect a material increase in market volatility over the medium-term.

VIX Index