In a bullish market condition’s and low-yield territory for the bond market’s, equities continue to swing higher, although marking new high level’s after high’s . . Let’s don’t forget that is earning month and stock’s move usually in a group and driving the hole particularly industry to new high point’s . . That been said let’s take a look of a couple of trading vehicle’s that we can appreciate from they’re sentiment change’s . .
Investor sentiment is finally starting to change for Twitter Inc (NYSE:TWTR). After losing well over half of its valuation the last year, TWTR has jumped 22% in the last month.
Revenue growth expectations have been reduced from 30% and 40% to low 20% over the next two years. Thus, the bar is set very low for Twitter. If Twitter can deliver and beat low expectations while having success with the NFL, it would be no surprise for TWTR to double! What’s crazy is that TWTR would still be 50% off its all-time high even if it doubled. .
Bank of America (BAC)
For if interest rates continue doing what they have been doing (going lower) then these banks will continue fighting an uphill battle, which in turn is likely to keep the broader stock market somewhat capped on the upside.
From the yellow line which act as a support for BAC increase with 7.17% till now. Considered in a upside movement.
Intel Corp (INTC)
Semiconductor companies such as Intel Corporation (NASDAQ: INTC) remain an important tell for the tech sector, which in turn is important for the broader market. INTC stock, over the past eighteen months or so has continually narrowed its range, which ultimately will lead to a better directional move. Key resistance is somewhere in the $33 to $34 range while support is in the high $20s.
Amazon Inc (AMZN)
AMZN stock rallied back very strongly from the depths of its February lows. From its late 2015 highs down to the February lows the stock had lost about 30%, which is not an atypical corrective move for a strong trend following stock like AMZN. The rally off the February lows, meanwhile, adds up to about 55% and has also pushed the stock to fresh all-time highs.
NETFLIX Inc. (NFLX)
Unlike AMZN stock, shares of Netflix, Inc.(NASDAQ: NFLX) remain in a well-defined down-trend with a series of lower highs after topping out in late 2015.
While NFLX stock also rebounded sharply off its February lows, it only managed to retrace about 62% (an important Fibonacci measure) before finding resistance in April and moving lower again.
In the bigger picture, this stock remains in a consolidation phase that really has been in place since August of 2015.
FACEBOOK Inc. (FB)
Facebook Inc. (NASDAQ: FB) remains one of the better trending stocks in recent years. While stocks like Netflix and Amazon.com have seen sharper rally bursts, the move higher in Facebook has been much less erratic and thus more orderly. FB stock has been holding nicely above its 200 day simple moving average on both a weekly and daily closing basis.
SPDR S&P 500 ETF Trust (NYSEARCA: SPY)
Much of the reason why this benchmark large-cap index has held up so well year-to-date while most sectors and other equity indices struggled has to do with this current yield-starved environment. Admittedly, a 2% dividend yield from a blue chip stock smells more appetizing than the paltry yields we currently get from the U.S. Treasury market…and let’s not even talk about the negative bond yields we see sprinkled throughout Europe. However, in my opinion even if we were to see a yield-chasing breakout in the S&P 500 in the near to intermediate term, I have serious doubts such a move would be sustainable through a 6-12 month lens.
Thus far, 2016 has been a curious ride. And while this could arguably be said about any period in time, the current ultra-low interest rate environment makes things somewhat trickier than usual.
We live in unprecedented times where bond yields are at near record lows, and increasingly we are even seeing negative yields. This negative-yield environment has been supportive for the S&P 500 thus far, but it doesn’t speak to much economic growth.
J. Mason ♦