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 above 0. 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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Nike (NKE)

Nike (NKE) will report earnings after the close. Estimates $0.70 versus $0.59. The stock is above its price target and upper limit.

nke

Portfolio Update

The S&P 500 has fallen hard since last week’s update. The Nasdaq Composite fell as well. The portfolio is now 84% invested long, 0% short and 16% in cash, net long 84%. We are now at a value of 901.17% from 954.62% last Tuesday.

It appears for the time being that 1950 on the S&P 500 has become support and 2000 is resistance. Support has dropped two levels.

We have added the price target from the Alpha Intelligence Stock Scorecard into the weekly update. Names above price targets are highlighted in yellow. We will remain with these names as well until technical violations begin.

Remember these returns are total returns with the average change for all winners and losers is 7.97% per idea. Our batting average of closed winners and losers is 72%. The portfolio is up 901.17% and from inception when it began at 0% in April of 2008. We began 2013 at a value of 478.60% so we had a very nice gain for 2013 ending at 732.40%. So far this year we are up 168.77 points or 23.04%. The performance on the Uncommon Wisdom Daily Portfolio Tracker is a bit higher due to dividends which they add in. We have never added in dividends so our weekly results are understated since 2008.

Federal Express (FDX)

Federal Express (FDX) will report earnings tomorrow and is really overvalued.It is well above the price target and upper limit.

fdx

The Week Ahead

1.Geopolitical and Fiscal Events. Wednesday sees the FOMC announce its latest decision Friday sees Federal Reserve Chicago President Evans speak at 10:00 a.m. EST and Federal Reserve Richmond President Lacker at 12:30 p.m. EST.

2.Economic Releases. Releases of note this week include the weekly chain store sales, oil/gas numbers, mortgage applications and industrial production, housing starts, CPI and leading indicators.

3.Earnings Releases. Notable releases include PAY FCEL DRI FDS ORCL FDX NKE CAN PAYX KMX (in order of day’s reporting with Monday first and Friday last among others companies as we continue Q3 earnings.

Fuel Cell (FCEL)

Just because a stock has a low stock price does not make it a buy. Fuel Cell (FCEL) is a good example of this situation. Avoid for now.

 FCEL

Adobe (ADBE)

Adobe (ADBE) will report earnings after the close. Estimates are $0.30 versus $0.32. The stock has anemic earnings growth and a price target that is below current price never a good combination. Avoid for now.

 adbe

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 above 0 with the NASDAQ Composite. The chart below is 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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Autozone (AZO)

Autozone (AZO) will report earnings before the open. Estimates are $7.17 versus $6.29.  Despite the nice earnings growth, the stock is fully valued. Worth a look when the market pulls back.

azo

Portfolio Update

The S&P 500 has risen since our update last Tuesday. The Nasdaq Composite rose as well. The portfolio is now 84% invested long, 0% short and 16% in cash, net long 84%. We are now at a value of 954.62% from 953.44% from last Tuesday.

It appears for the time being that 2050 on the S&P 500 has become support and 2100 is resistance.

We have added the price target from the Alpha Intelligence Stock Scorecard into the weekly update. Names above price targets are highlighted in yellow. We will remain with these names as well until technical violations begin. ETFs recommendations can be found in The Madison Letter. In 2014, this will be updated each Friday with Market Crash Indicators. We added USO on the buy side November, 14th. So far this has yet to work.

Remember these returns are total returns with the average change for all winners and losers is 8.45% per idea. Our batting average of closed winners and losers is 72%. The portfolio is up 954.62% and from inception when it began at 0% in April of 2008. We began 2013 at a value of 478.60% so we had a very nice gain for 2013 ending at 732.40%. So far this year we are up 222.22 points or 30.34%. The performance on the Uncommon Wisdom Daily Portfolio Tracker is a bit higher due to dividends which they add in. We have never added in dividends so our weekly results are understated since 2008.