Tyson Foods (TSN)

Tyson Foods (TSN) will report earnings before the open. Estimates are $0.73 versus $0.72. The stock price is above the price target. We would pass on this name for now. A break here could send the stock back to $35 first and then maybe $27.50.

tsn

The Madison Letter Weekly Update

We are invested on our overall Market Call. Since inception, our overall timing return is 73.78% versus 42.26% on the S&P 500 for excess return of 31.52%.

Stocks and indexes have pulled back in the past week.

Also, in tracking the range between the 2 year and 10 year we have seen the spread narrow by 39 basis points since October. The spread is now 122 basis points. This is a big drop for a couple month period. Short term rates are on the rise while long term are not. This needs to be watched. There are implications.

We began to offer a buy and sell strategy via our Madison Market Timing Indicator at the beginning of April of 2007. There are now 24 open and closed winning trades to 8 closed losing trades with our market timing results. We were left with one long position TRF from our original buys before launching with Uncommon Widsom Daily. This column replaces the Morning Matters on Fridays. 

madison market timing

Weekly Charts Updated

Each week we highlight charts below of the SP500, Russell 2000, NASDAQ Composite, UUP, EEM, TLT, HYG and LQD. The charts use the 50 day moving average slope indicator. When it is green we like the instrument we are tracking and when it is red we avoid the name/sector/asset class.

U.S. Equity indexes are mostly in the green despite the chaotic volatility. The S&P 500 is now below 0 however and this is potentially a problem that needs to be watched.

All charts are created from www.erlangerchartroom.com and if interested in using this indicator in Chart Room please feel free to send us an email by using the Contact Us section from the home page. 

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Apple (AAPL)

Not having a sell discipline can cost you dearly. Apple (AAPL) gapped open but closed below its open price by over $2. Is it surprising to us that investors sold. No not really. Our stock scorecard upper target is below Wednesday’s closing price. Fighting the scorecard is a painful way to go through life.

 aapl

Las Vegas Sands (LVS)

Las Vegas Sands (LVS) will report earnings after the close. Estimates are $0.80 versus $0.72. The stock is getting no love from investors and any positive guidance could send it skyward.

 lvs

Graco (GGG)

Graco (GGG) will report earnings after the close. Estimates are $0.83 versus $0.71. The stock  has been range bound since the fall of 2013 and as such there is some nice upside to the price target.

 ggg

The Week Ahead

1.Geopolitical and Fiscal Events. Tuesday sees President Obama visits Saudi Arabia. Wednesday sees the FOMC release its latest update.

2.Economic Releases. Releases of note this week include the weekly chain store sales, oil/gas numbers, mortgage applications and durable goods, consumer confidence, pending home sales, Q4 GDP advanced, January Chicago PMI and Michigan Sentiment.

3.Earnings Releases. Notable releases include MSFT TXN AAPL PG FB QCOM GOOGL BABA CVX NVO.

Rockwell Collins (COL)

Rockwell Collins (COL) will report earnings in the morning. Estimates are $1.11 versus $0.96. The stock price is above the price target and as such this name is a hold for now. In the last year, the stock is up over $17 in price. Hence the full valuation. 

col

Starbucks (SBUX)

Starbucks (SBUX) will report  earnings after the close. Estimates are $0.80 versus $0.71. There is still more than $7 of upside to our price target. I would be will to wager that this quarter will be a blowout as gas price drops may bring in more customers that want to give Starbucks a try.

 sbux

Weekly Charts Updated

Each week we highlight charts below of the SP500, Russell 2000, NASDAQ Composite, UUP, EEM, TLT, HYG and LQD. The charts use the 50 day moving average slope indicator. When it is green we like the instrument we are tracking and when it is red we avoid the name/sector/asset class.

The S&P 500 is still in the green despite the chaotic volatility. The S&P 500 is above 0 on our indicator but still below the actual 50 day moving average. Charts are created from www.erlangerchartroom.com and if interested in using this indicator in Chart Room please feel free to send us an email by using the Contact Us section from the home page. 

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