Weekly Charts Updated

 

We are going to continue making Thursday our chart section in only Superstock. That said, we are changing the format. If you want to follow the S&P 500, then you will need to sign up for www.superstockinvestor.com at the website. Each week in Superstock we track the S&P 500, NASDAQ Composite, Russell 2000, Emerging Markets (EEM), 20 Year Treasury (TLT), U.S. Dollar (UUP), High Yield Bonds (HYG) and Corporate Bonds (LQD). This alone is worth the price of the service as signals on the NASDAQ Composite returned 15.65% versus the index return of 18.93%.

 Last week we focused on Intel (INTC) that potentially looked good as it was approaching the 0 line. It is lower by $0.13 week over week and is still close to breaking out. We remain hopeful.

 intc

 This week we look at Cree (CREE) that deteriorated over the last several weeks and today crumbled on weaker earnings. If you do not respect a break into the red, then be prepared to pay a steep price.

cree 

 

Portfolio Update

The S&P 500 is higher than a week ago despite Friday’s pullback. The Nasdaq Composite is trying to close above 5000. The portfolio remains 50% invested long, 0% short and 50% in cash, net long 50% with profits taken most recently in Red Hat(RHT). We are now at a value of 1004.47% from 1001.47% through Monday’s close. We finished the year at a value of 951.10 up 29.86% for the year. Our current value is 1004.47% which puts us up 4.93% for the year.

Below are the year by year results on a cumulative and absolute basis: 

ssi ytd

It appears for now that 2100 on the S&P 500 has become resistance and 2050 is support. We are now at 2100.40 which is higher from a week ago. A big test for the week is to see if it can clear 2100 and stay above the level for several days if not a week or two.

Remember these returns are total returns with the average change for all winners and losers is 8.93% per idea. Our batting average of closed winners and losers is 72%. The portfolio is up to a value of 1004.47% and from inception when it began at 0% in April of 2008. 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.

The Russell 2000 is still beating the S&P 500 on a daily basis.

The Week Ahead

1.Geopolitical and Fiscal Events. Monday sees Greece’s Foreign Minister meet with U.S. Secretary of State Kerry. Friday sees Greece face a deadline to create reforms to unfreeze monetary aid.

2.Economic Releases. Releases of note this week include the weekly chain store sales, oil/gas numbers, mortgage applications and existing home sales, new home sales and durable goods.

3.Earnings Releases. Notable releases include STI HAL DD YHOO MCD BA MO DOW BIIB TYC.

The Madison Letter Weekly Update

Since inception, our overall timing return is 80.98% versus 48.15% on the S&P 500 for excess return of 32.82%.

Stocks and indexes have moved higher in the past week.

The range between the buy and sell points is now above average. As an example, the S&P 500 range was 68 points at the low and is now 73 from 82 points a week ago. As volatility rises, this expands. Witness at the October low the range was 169 points.

Also, in tracking the range between the 2 year and 10 year is still 140 basis points. Short term rates are on the rise while long term have fallen. 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.

Weekly Charts Updated

We are going to continue making Thursday our chart section in only Superstock. That said, we are changing the format. If you want to follow the S&P 500, then you will need to sign up for www.superstockinvestor.com at the website. Each week in Superstock we track the S&P 500, NASDAQ Composite, Russell 2000, Emerging Markets (EEM), 20 Year Treasury (TLT), U.S. Dollar (UUP), High Yield Bonds (HYG) and Corporate Bonds (LQD). This alone is worth the price of the service as signals on the NASDAQ Composite returned 15.65% versus the index return of 18.93%.

 Last week we focused on Priceline (PCLN) that looked good and as Europe improves so to should this name. Our target is a test of the high last year and week over week it moved higher by $8.65.

hun 

 This week we look at Intel (INTC) that potentially is going to move above the zero line in the next week or two. This will confirm its upside.

 intc1

Been There, Done It

The European Union (EU) is preparing to charge Google (GOOGL) with antitrust violations. Is this a big deal or much ado about nothing? We think it is much ado about nothing and will stick with the stock in our portfolio within Morning Matters.

EU Complaint

Microsoft lived through the same charges paying our $2.34 billion in fines. Google has offered several solutions to solve the existing issues that the EU has with Google.

 

Portfolio Update

The S&P 500 is higher than a week ago despite Monday’s pullback. The Nasdaq Composite is trying to close above 5000. We are now at a value of 1001.47% from 995.84% through Monday. We finished the year at a value of 951.10 up 29.86% for the year. Our current value is 1001.47% which puts us up 5.03% for the year.

Below are the year by year results on a cumulative and absolute basis:

ssi ytd

It appears for now that 2100 on the S&P 500 has become resistance and 2050 is support. We are now at 2092.43 which is higher from a week ago. A big test for the week is to see if it can clear 2100.

Our batting average of closed winners and losers is 70%. The portfolio is up to a value of 1001.47% and from inception when it began at 0% in April of 2008. 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.

The Russell 2000 is still beating the S&P 500 on a daily basis.

#1 Rule of Customer Service

We like to invest in stocks that have good customer service. I learned a long time ago from Michael Store’s founder Michael Dupey who taught a class in entrepreneurship that the worst thing to do if you run a business is make a customer stand in line.

Customer Service

So that is the bad news, the good news is we like the airline that was at the top of the survey, Virgin America (VA). It is a recent IPO that has broken its offered price and is looking for a bottom.

The Week Ahead

1.Geopolitical and Fiscal Events. Monday sees Bank of Japan Governor Haruhiko Kuroda speak. Tuesday sees Federal Reserve Minneapolis President Kocherlakota speak after the close. Wednesday sees Federal Reserve St. Louis President Bullard and Richmond President Lacker speak. Wednesday also sees President Obama meet with Iraqi Prime Minister Haidar al-Abadi. Thursday Federal Reserve Atlanta President Lockhart, Cleveland President Mester and Boston President Rosengren speak.

2.Economic Releases. Releases of note this week include the weekly chain store sales, oil/gas numbers, mortgage applications and retail sales, PPI, industrial production, Empire State Manufacturing, NAHB Housing Index, Federal Reserve Beige Book, housing starts, Philadelphia Fed Manufacturing Survey, CPI, leading indicators and Michigan Sentiment of note this week.

3.Earnings Releases. Notable releases include CBSH OZRK JNJ WFC BAC KMI C TSM GE HON.

Weekly Charts Updated

We are going to continue making Thursday our chart section in only Superstock. That said, we are changing the format. If you want to follow the S&P 500, then you will need to sign up for www.superstockinvestor.com at the website. Each week in Superstock we track the S&P 500, NASDAQ Composite, Russell 2000, Emerging Markets (EEM), 20 Year Treasury (TLT), U.S. Dollar (UUP), High Yield Bonds (HYG) and Corporate Bonds (LQD). This alone is worth the price of the service as signals on the NASDAQ Composite returned 15.65% versus the index return of 18.93%.

 

Last week we focused on  Huntsman (HUN) which needed to move a bit higher and then it would be a buy in the work. It remains slightly in the red but improved weeek over week.. 

hun

This week we look at Priceline (PCLN) that looks good and as Europe improves so to should this name. Our target is a test of the high last year. 

pcln