BEFORE THE OPEN 12/12/19
The Federal Reserve left interest rates unchanged, in the FOMC meeting minutes released on Wednesday. The “dot plot” of individual members’ future projections indicated, on balance, no hike, in 2020. With the Fed seemingly “on hold”, accommodative Central Banks globally, and technically bullish charts and price action, this sets a favorable backdrop for stocks currently.
CHARTS OF INTEREST
Semiconductor HOLDRS ETF (SMH)
One of my top focus groups for the last few month, SMH made a new all-time high yesterday, after a bullish test of the rising 50-day moving average.
Applied Materials (AMAT)
HIghlighted in this report on December 3, broke out strongly yesterday and is back above all key moving averages, after a successful test of the rising 50-day moving average. One of my focus names in the bullish semiconductor group.
Emerging Markets ETF (EEM)
EEM recently held an exact test of the 200-day moving average.
Gold Miners ETF (GDX)
GDX is showing signs of improvement, and recently held over the key $26 level. A close over $28 would be constructive and is a group I am watching closely here. Miner Anglogold Ashanti, AU, is showing nice strength, closing over all key moving averages for the first time since September 2019.
12/11/2019
Bristol Myers (BMY), a best ideas name from September, continues to breakout, up 30% since clearing the 200-day moving average in August 2019.
“ETF CHART OF THE DAY” FOR 12/11/19
S&P Metals & Mining ETF (XME)
$28.95
Bullish 10/40 week cross, a key long-term signal. Made an 8 month high yesterday, up 8 of the last 10 weeks $26 is key support on any pullbacks – still one of my highest rated longer-term groups here.
“EQUITY CHART OF THE DAY” FOR 12/11/19
HALIBURTON (HAL)
Closed over the 200-day moving average today for the first time since June 2018, a bullish signal.
“CHART OF THE DAY” 12/10/19
HOME DEPOT (HD)
$216.53
Home Depot, coming off an oversold 30 daily RSI reading and rising 200 sma range. The rising 200sma is 3.6% below, the $200 price level is 7.6% below, just below both could be used for stop levels.
METALS AND MINING UPDATE
XME moves into the top RSI spot for core ETFs that I track, at 73.93, indicating strong buying pressure. This focus group is buyable and on pullbacks.
DAILY UPDATE AFTER THE CLOSE 12/09/19
In a follow up to Monday morning’s Weekly Report, industrial metals and energy names were strong today.
FCX closed +3.95%, AKS +2.79%, X +1.08%, XME + .94%. I took a new position in US Steel, X, just over the 40 week moving average at 14.11, with a stop under 12.39. Haliburton, HAL, closed over the 40 week MA today for the first time since June of 2018 and Schlumberger, SLB, also closed over the 200-day MA. Bullish price action in metals and energy, two key focus groups. Kraft Heinz, KHC, a recent Trade Ideas name and long-term turnaround prospect, held the recent test of the 200-day MA and is working on a bullish 50/200 MA cross.
