S&P 500: Technical Analysis

The stock market ended flat on Friday. It seems the market is losing a direction. Many stock investors are confused about the market move. Indeed it's very difficult to find a direction in this quite neutral set-up: 1. The RSI is neutral. 2. The current price is around the monthly moving average. However, if we look more closely, we can see that the market has an attempt to move higher in a short term. The double bottom of the RSI and the reversed head-shoulder pattern favor a bottomed correction. The only unconfirmed signal is the unbroken neckline. In addition to those bullish signs, there is a longer term bearish concern: the reversed MACD. This is a very powerful indicator for longer term trend reversal. If the neckline cannot be broken and then the market turns south, it won't be a correction any more, it'll be a beginning of a bearish market for a least a couple of months.

Apple Still a Good Call

Analysts' Recommendation

My Performance This Year

Is Yahoo! a strong buy?

Standard & Poor's issued a strong buy for Yahoo! (Ticker: YHOO) recently. They believe Yahoo's revenue will increase 7% in 2010 and 2011 respectively and they also see the joint venture between Yahoo! and Miscrosoft is a good sign. Is YHOO a strong buy?

Fundamentally, analysts expect Yahoo! to make good earnings in the next couple of years. Here is the earnings estimates:

If the current economy is recovered healthily, Yahoo!'s earnings trend looks promising!

Technically, Yahoo! is in a mid-term downtrend. However, in short term, there is a well formed bottom as indicated by the green arrow in the following figure (Weekly chart of YHOO). The bottom is confirmed by the last week's rally. In short term, it's extremely important to observe whether the blue downtrend resistant line will be broken through. If it's broken, it's a sign of a mid-term trend reversal and also exhibits a possible long term rally!

On the other hand, the contraction of short interests also indicates a bullish trend for Yahoo!, as seen in the following figure.


In summary, the fundamental and technical factors indicate that Yahoo! is on a right track for a bullish run!

Chicken stocks that will be affected by China's tariffs

There is an ongoing chicken war between China and the US now. Those two stocks will be affected. But who is the Chicken Little? :)

Pilgrim's Pride (PPC): duty-fee 80.5%
Tyson Foods (TSN): duty-fee 43.1%

Top 10 hot Tech stocks for 2010 by Kiplinger

1. Applied Materials (AMAT)
2. Autodesk (ADSK)
3. Cisco Systems (CSCO)
4. Hewlett-Packard (HPQ)
5. Microchip Technology (MCHP)
6. Micron Technology (MU)
7. Nice Systems (NICE)
8. Nvidia (NVDA)
9. Vistaprint (VPRT)
10. Yahoo (YHOO)