Retail sales numbers came in today and were up which helped markets to rally upwards. This and the upward swing on the value of the US Dollar probably contributed to gold going downwards today. When people see more opportunity in the market they are less likely to run to safe havens like gold.
Because of the slow economic recovery I still like companies like Dollar Tree (DLTR), Dollar General (DG), Walmart (WMT) and Target (TGT). The ability of people to buy goods is still hampered by the lack of available lending, thus people are still more inclined to look for bargains and spend less.
Showing posts with label DG. Show all posts
Showing posts with label DG. Show all posts
Tuesday, August 13, 2013
Monday, August 13, 2012
Market Update 8-13-12
The market is in a slow choppy pattern so it’s best to hold
off at the moment. A lot of traders are
on vacation and volume is light. It’s a
good time to just practice set ups at the moment with paper money and look to
get in the market at the end of the month.
If you are going to buy anything, I would look at low cost retailers
like COST, WMT, TGT, DG, FDO and yes AAPL because of the back-to-school
season.
Wednesday, July 11, 2012
Market Update 7-11-12
The vibe of the market has changed. There’s been a lot of analysts beating the
drum for a bear market. Thoughts do
become reality and when you have a lot of analysts and commentators talking
about a bear market they are in effect creating it. That said you can create your own market
conditions if you follow trends and the technical setups. Yesterday’s craziness was the release of a
lot of pent up anxiety about the market selling off to a support level. People are now waiting for some encouragement
from earnings numbers this week and the Fed minutes that come out at 2pm today.
Some of the best plays to make during times of anxiety are
in companies that provide comfort and these are companies that sell guns,
cigarettes, candy, sweets, ice cream and cheap household items. My conscience keeps me from buying guns and
cigarettes but ice cream, sweets and cheap household items are stocks I’m
looking at (WMT, DNKN, TGT, DG).
Monday, July 2, 2012
Market Update 7-2-12
The market tried to continue the momentum from Friday but
got stalled after bad manufacturing data came into the mix at around 10:15am. I took a position in WMT and GE early but got
hammered after the data came out. This
is one of those lessons to wait for the market to absorb the morning news and
then trade after 10:30am. I got too
confident after taking my profits on Friday.
I was however saved by my ATT trade that continued to roar higher. Not all was lost. Let’s see how things go tomorrow. I’m not too worried because the technicals on
GE look too good for it to reverse the that up trend it’s in, and WMT has
always grinded higher after pulling back to a support level. Some analysts have put a $79 price target on
WMT so things should pop up this week.
If you took a trade in DG, TWX, CMCSA, or FDO from off my “Stocks
to Watch” list, then you had a good day today.
Those stocks didn’t even flinch after the bad manufacturing data. The other stocks on my list didn’t do too bad
they just went back to break even.
I meant to write about another speculative stock that I read
up late last night after I shut down my blog and it was a monster of a play
today. It was only trading around $1.43
yesterday but went up to $1.56 today.
Nova Mining (NVMN). They mine
lithium. Now of course you mind is
already thinking. Yes lithium is in every
battery that we are using from cars, computers, smartphones and tablets. This company is in talks with Apple who is
trying to lock in supplies at a low price.
This is a strategic move on Apple to keep their costs low and profit
margins high. Check the link to the
article below. As a side note it was also mentioned that Apple may be looking
at Tesla Motors. That would really make
things interesting.
http://finance.yahoo.com/news/nvmn-buzz-aapl-possibly-buying-124000958.html
Sunday, July 1, 2012
Stocks to watch 7-1-12
Entertainment
TWX – Time Warner
Release of “Magic Mike” this weekend exceeded expectations
CMCSA – Comcast
Release of “TED” this weekend exceeded expectations
GE – General Electric
Release of “TED” this weekend exceeded expectations (Comcast
and GE co-own Universal Studios)
SNE – Sony Columbia Pictures
Spiderman release Tuesday may push stocks higher, however
this stock has been on a downward trend since 2001. It has done the typical up and down dance but
I think it has possibly bottomed out. We
may be poised for an upside swing. Sony just
closed on buying half of EMI’s publishing catalog on Friday and tomorrow they
will be offering their music library through Apple’s ipod and ipad. All of these developments may make the stock
a good buy tomorrow.
Yahoo article on publishing
Morningstar article on publishing library
Retail
DG - Dollar General
This stock has been on a run since the beginning of this
year and even when all the other stocks were going south from the news in Europe,
it has continued to grind higher. We had
a retracement on Wednesday last week and it pulled to a support level off the
100 day moving average. It popped up the
typical halfway point between the high and the low of the retracement and is
poised to go either way tomorrow. The
bottom line is, if you think this stock is going to grind higher from positive
news in the market then go long. But if
you think the value of the company is priced all the way in at these highs (which
are the highest this stock has ever been) then go short.
An interesting article talking about DG being overvalued at
these prices:
FDO – Family Dollar
This might be a better play than DG simply because it is
cheaper. I always believe in buying low
and selling high. FDO has gone down to a
support level and is poised to go back up especially if the market as a whole
has a jump tomorrow.
Here’s an article that gives more detail:
I still like Walmart (WMT) even though I took profits on
Friday and I may take another position tomorrow. I also still like ATT (T) because of the
technical setup.
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