Pre-opening Comments for Tuesday May 8th
U.S. equity index futures are lower this morning. S&P 500 futures are down 6 points in pre-opening trade. Index futures are responding to news that political parties in Greece have been unable to develop a coalition to control the Greek parliament.
Electronic Arts is down $0.62 to $14.51 despite an upgrade by Needham from Hold to Buy and a target of $22. The company reported lower than expected fourth quarter revenues and lowered guidance for the current fiscal year.
Wendy’s/Arby’s fell $0.12 to $4.75 after lower guidance for 2012.
OfficeMax fell $0.30 to $4.10 after reporting less than consensus first quarter earnings and after announcing store closures.
McDonald’s fell $2.41 to $93.10 after reporting lower than expected sales in April.
Electronic Arts, Inc. (NYSE:EA) – $14.51 fell 4.1% despite an upgrade by Needham from Hold to Buy. The company reported lower than consensus fourth quarter revenues and lowered its guidance for the current fiscal year. The stock has a negative technical profile. Intermediate trend is down. Resistance is at $17.70. The stock trades below its 20, 50 and 200 day moving averages. Short term momentum indicators are neutral. Strength relative to the S&P 500 Index has been negative since the beginning of November. Better opportunities exist elsewhere.
Wendy’s/Arby’s Group (NYSE: WEN) – $4.75 fell 2.5% after lowering guidance operating earnings and revenues for 2012. The stock has a negative technical profile. Intermediate trend is neutral. Support is at $4.67 and resistance is at $5.33. The stock trades below its 50 and 200 day moving average and is expected to open below its 20 day moving average. Short term momentum indicators are trending down. Strength relative to the S&P 500 Index has been negative since November. Seasonal influences have just turned negative. Better opportunities are available elsewhere.
Wendy’s Arby’s Group Inc. (NYSE:WEN) Seasonal Chart
OfficeMax Inc. (NYSE: OMX) – $4.10 fell 6.8% after announcing lower than expected first quarter earnings and selected store closures. The stock has a negative technical profile. Intermediate trend is down. Support is at $4.09 likely will be broken today. The stock trades below its 20, 50 and 200 day moving averages. Short term momentum indicators are trending down. Strength relative to the S&P 500 Index has been negative since November 2010. Seasonal influences are peaking. Better opportunities exist elsewhere.
OfficeMax Incorporated (NYSE:OMX) Seasonal Chart
Reactions to news from the French and Greek elections were muted yesterday with exceptions. Strongest response was recorded by Greece’s equity market.
Although U.S. equity indices were virtually unchanged yesterday, only two S&P 500 stocks broke above intermediate resistance levels (Berkshire Hathaway and Equity Residential Properties Trust) and 14 stocks broke support (Accenture, Alcoa, American International Group, AmerisourceBergen, Citigroup, Cognizant, DaVita, Freeport McMoran Copper & Gold, Frontier Communications, Lockheed Martin, Molex, Oracle, Owens Illinois, Textron and Tiffany)
Keith Richards’ Blog
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FP Trading Desk Headline
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Disclaimer: Comments and opinions offered in this report at www.timingthemarket.ca are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered in this report is believed to be accurate, but is not guaranteed.
Don and Jon Vialoux are research analysts for Horizons Investment Management Inc. All of the views expressed herein are the personal views of the authors and are not necessarily the views of Horizons Investment Management Inc., although any of the recommendations found herein may be reflected in positions or transactions in the various client portfolios managed by Horizons Investment Management Inc
Horizons Seasonal Rotation ETF HAC May 7th 2012
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