The Red Roadmaster’s US Market Monthly Re-cap + Stock Talk ™
6 April 2010
Date Line: Hong Kong (SAR) China
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Red’s Bull Alert
Light volume sends the DJIA towards 11,000, The DJIA and S&P
500 both closed at new 18 month highs + the leading NAS ended at a 19 month closing high.
Re-cap of the US Stock Market Action for the session ending 5 April 2010 The S&P 500 is now up 75.5% from its bottom on March 9, 2009. Last week, the US stock indexes closed their 5th straight week of gains and 4 positive Q running. US stocks rose Monday, and the DJIA tapped at the 11,000 level, on signs of a turnaround in the US labor market the fueled hopes the economy is strengthening, and the profit outlook is brightening. Shares of natural resources companies led the charge on expectations that an improving economy would drive up demand. The DJIA rose 46.48 pts, or 0.43%, to close at 10,973.55, the S&P 500 gained 9.34 pts, or 0.79%, to close at 1,187.44, and the NAS tallied up a + 26.95 pts, or 1.12%, to end the session at 2,429.53. Volume was extremely light, making Monday's session the second-slowest volume day of 2010. On the first trading day after government data showed the economy added the largest number of jobs in three years, investors got separate reports showing that services, the US economy's largest segment, grew above expectations in March and pending home sales rose more than expected in February. On the New York Merc, May US Crude Oil rose US$1.75, or 2.06%, to settle at US$86.62 bbl the highest close since the October 8, 2008, settlement of US$88.95. The yield on the benchmark US 10 yr T-Note rose to touch 4% earlier, a level not seen since June 2009, when it hit 4.01%. Semiconductor shares also stood out, with the semiconductor index .SOXX up 3%. The February home sales data lifted home builders' stocks, with the PHLX housing index was up 1.8%. The Institute for Supply Management said its services index jumped to 55.4 in March, its strongest reading since May 2006, and above February's reading of 53.0. Nonfarm payrolls gained 162,000 jobs in March, below consensus, and many of the jobs were temporary, but more private-sector hiring was seen as further evidence the economy is improving.
Advancing Sectors: Energy (+1.6%), Materials (+1.2%), Consumer Discretionary (+1.2%), Tech (+1.1%), Financial (+1.0%), Industrials (+0.8%), Telecom (+0.7%), Utilities (+0.6%) Declining Sectors: Health Care (-0.3%), Consumer Staples (-0.1%) Volume and Breadth: About 7.04B/shrs traded on the NYSE, the AMEX, and the NAS, below last year's estimated daily average of 9.65B/shrs. Advancers beat decliners by 3 to 1 on both the NYSE and NAS
Market Indexes Technical Analysis
Stocks to Watch Today
E. I. DuPont de Nemours & Co. (DD), Harley-Davidson, Inc. (HOG), Nike, Inc. (NKE), and Las Vegas Sands Corp. (LVS)
E. I. DuPont de Nemours & Co. (DD) Up-date 5
Last Look: March 19, 2010
April 6, 2010
Paul A. Ebeling, Jnr. Analyst Today letâ€™s look at E. I. DuPont de Nemours & Co. (DD), the Giant US Chemical and Agriculture company, from a Technical POV. The overall indications, after Mondayâ€™s (April 5) market action, are Bullish: in the near term Bullish, mid-term Very Bullish, and long term Very Bullish. The recent Candle Stick analysis is: Neutral
**Chart by: http://www.stockta.com
Latest News and Opinion: Lightning Round: Wynn, Owens Corning, Halliburton and More http://www.cnbc.com/id/36176789?__source=yahoo|headline|quote|text|&par=yahoo
Mondayâ€™s Market Action Close 38.42
There is a Bullish Harami on March 30, and one Gap open up on March 5 at 34.63/34.71, the near term resistance is 39.00, support at 37.97, and the 50 day (EMA) exponential moving average is 35.50. This is EI DuPont de Nemours & Co. (DD): (DuPont) operates as a science and technology company in various disciplines, including agriculture, industrial biotechnology, chemistry, biology, materials science, and manufacturing. It operates in five segments: Agriculture & Nutrition, Coatings & Color Technologies, Electronic & Communication Technologies, Performance Materials, and Safety & Protection. The Agriculture & Nutrition segment offers benzene and carbamic acid related intermediates, copper, insect control products, natural gas, soybeans, soy flake, and soy lecithin, sulfonamides, corn, and soybean seeds. The Coatings & Color Technologies segment provides automotive finishes, industrial coatings, and titanium dioxide white pigments. The Electronic & Communication Technologies segment offers a range of materials for the electronics industry, flexographic printing and color communication systems, and various fluoropolymer and fluorochemical products. The Performance Materials segment provides thermoplastic, and thermoset engineering polymers and elastomers to fabricate components for mechanical and electrical systems, as well as specialized resins and films used in packaging and industrial applications, sealants and adhesives, sporting goods, and interlayers for laminated safety glass. The Safety & Protection segment offers specialty and industrial chemicals, nonwovens, aramids, and solid surfaces. The company also has interest in two antihypertensive drugs, the Cozaar and Hyzaar. It serves construction, transportation, communications, industrial chemicals, oil and gas, electric utilities, automotive, manufacturing, defense, homeland security and safety consulting, refrigeration, insulation, aerosol propellants, aerospace, automotive, electronics, chemical processing, and house ware industries. The company operates in the United States, Europe, the Asia Pacific, Canada, and Latin America. DuPont was founded in 1802 and is headquartered in Wilmington, Delaware. Competitive Landscape Demand for agricultural chemicals depends mainly on demand for various crops, which in turn depends on crop prices. The profitability of individual companies is linked to efficient operations and marketing. Big producers have large economies of scale in production. Smaller companies can compete effectively by making specialty chemicals or fertilizer mixtures for local markets. Operations are capital intensive and highly automated: annual revenue per employee at a large plant is close to US$700,000. Chemical Manufacturing - Agricultural Industry Forecast The output of US agricultural fertilizers and chemicals is forecast to grow at an annual compounded rate of 2% between 2008 and 2013. Data Sourced: December 2008 E. I. DuPont de Nemours & Co. (HQ) Chief Exec. Officer & Pres: Ellen J. Kullman 1007 Market Street Wilmington, DE 19898 United States Phone: 302-774-1000 Fax: 302-773-2631 http://www.dupont.com
DuPont Subsidiaries 4
Du Pont China Holding Company Ltd. Du Pont (Thailand) Limited DuPont Agriculture & Nutrition
HARLEY-DAVIDSON, Inc. (HOG) Up-date 1
Last Look: April 17, 2009
April 6, 2010 Paul A. Ebeling, Jnr. Analyst Today let’s look at Harley-Davidson, Inc. (HOG), The USAs quintessential motor cycle maker, from a Technical POV. The overall analysis after Monday’s (April 5) market action is Bullish; in the near term Bullish, mid-term Bullish, and long term Bullish. The recent Candle Stick analysis is: Neutral
**Chart by: http://www.stockta.com
Latest News and Opinion: Pops & Drops: Cree, Harley-Davidson...
Mondayâ€™s Market Action Close 31.37 +2.99 Volume 10,394,500/shrs
There is one Gap open up on April 5 at 28.53/28.64, the near term resistance is NIL, support at 29.90, and the 50 day (EMA) exponential moving average is 26.61. This is Harley-Davidson (HOG): H-D is the only major US maker of motorcycles and the nation's #1 seller of heavyweight motorcycles. The company offers 35 models of touring and custom Harleys through a worldwide network of more than 1,500 dealers. Harley models include the Electra Glide, the Sportster, and the Fat Boy. The company also makes motorcycles under the Buell, MV Agusta, and Cagiva nameplates. Harley-Davidson sells attitude with its brand name products which include a line of clothing and accessories (MotorClothes). Harley-Davidson Financial Services offers financing to dealers and consumers in the US and Canada.
Competitive Landscape Demand for many specialty retail goods is driven by gains in consumer income. Large competitors can offer lower prices because they buy in quantity. Small retailers can compete with large ones by offering different merchandise or providing a higher level of service. Despite the presence of some large chains, specialty retail markets are highly fragmented.
Specialty Retail Industry Forecast
US personal consumption expenditures for specialty retail items, like toys, dolls, games, cameras, film, film processing, guns, ammunition, sporting equipment, boats, and aircraft, are forecast to grow at an annual compounded rate of 5.1% between 2008 and 2013.
Harley-Davidson, Inc. Jim Ziemer Chief Executive Officer/President 3700 West Juneau Avenue Milwaukee, WI 53208 United States Phone: 414-342-4680 Fax: 414-343-4621 http://www.harley-davidson.com
Las Vegas Sands Corp. (LVS) Up-date 8
Last Look: March 17, 2010
April 6, 2010 Paul A. Ebeling, Jnr. Analyst Today, letâ€™s look at Las Vegas Sands Corp. (LVS), the international casino/resort operator, from a Technical POV. The overall indications, after Mondayâ€™s (April 6) market action, are Bullish: in the near term Very Bullish mid-term Bullish, and long term Very Bullish. The recent Candle Stick Analysis is: Neutral
**Chart by: http://www.stockta.com
Latest News and Opinion: Macau Still A Boon For U.S.-Listed Casino Shares
http://finance.yahoo.com/news/Macau-Still-A-Boon-For-indie-3143177383.html?x=0&.v=1 Mondayâ€™s Market Action
There are two Gaps open up on March 5 and April 5 at 17.25/21.56, the near term resistance is 23.46, support at 22.29, and the 50 day (EMA) exponential moving average is 18.89. This is Las Vegas Sands Corp. (LVS): The Venetian Casino Resort (owned by Las Vegas Sands) brings a touch of Venice to the Las Vegas Strip. Replete with gondoliers and a replica of the Rialto Bridge, the Venetian offers a 120,000-sq.-ft. casino and a 4,000-suite hotel, as well as a shopping, dining, and entertainment complex. Las Vegas Sands also operates the Congress Center conference facility that links the casino to the nearby Sands Expo Center trade show and convention center. In addition, the firm operates The Sands Macao casino in China, and The Palazzo Casino next door to the Venetian in Las Vegas. Chairman and CEO Sheldon Adelson and trusts for his family own nearly 70% of the firm. The Competitive Landscape Growth in consumer income and state spending has driven expansion of the US gambling industry. The profitability of individual companies depends on efficient operations and effective marketing. Large operators have the financial resources to make large investments in facilities and efficient computer operations, and have cross-marketing opportunities. Small gambling facilities can thrive by catering to a local clientĂ¨le. The industry is fairly labor-intensive: annual revenue per employee is US$90,000. Gambling Operations Industry Forecast USA personal consumption expenditures for participant amusements and pari-mutuel net receipts, which include gambling operations, are forecast to grow at an annual compounded rate of 5 % between 2008 and 2013. Las Vegas Sands Corp. (HQ) Chairman, CEO, and Treasurer Sheldon G. Adelson 3355 Las Vegas Blvd. South Las Vegas, NV 89109 United States Phone: 702-414-1000 Fax: 702-414-4884 http://www.lasvegassands.com
Nike, Inc. (NKE) Up-date 3
Last Look: March 19, 2010
April 6, 2010 Paul A. Ebeling, Jnr. Analyst Today, letâ€™s look at Nike, Inc. (NKE), the world's #1 shoemaker, from a Technical POV. The overall indications, after Monday (April 5) market action is Neutral: in the near term Neutral, mid-term Bullish, and long term Bullish . The recent Candle Stick analysis is: Very Bearish
**Chart by: http://www.stockta.com
Latest News and Opinion: Is the Tiger Woods Scandal Played Out? 9
http://www.thestreet.com/_yahoo/story/10716704/1/is-the-tiger-woods-scandal-played-out.html? cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA Monday’s Market Action Close 74.11
+ .10 Volume 1,770,400/shrs
There is a DOJI on April 5 and one Gap open up on March 18 at 71.33/73.70,the near term resistance is 74.66, support at 73.83, and the 50 day (EMA) exponential moving average is 69.13 This is Nike, Inc. (NKE): NIKE designs, develops, and markets footwear, apparel, equipment, and accessory products worldwide. The company offers various categories of shoes, including running, training, basketball, soccer, sport-inspired urban shoes, and children’s shoes. It also provides shoes for aquatic activities, baseball, bicycling, cheerleading, golf, lacrosse, outdoor activities, skateboarding, tennis, volleyball, walking, wrestling, and various athletic and recreational uses. In addition, the company offers sports-inspired lifestyle apparel, athletic bags, and accessory items. Further, it provides a line of performance equipment, including socks, sport balls, eyewear, timepieces, electronic devices, bats, gloves, protective equipment, golf clubs, and various equipments designed for sports activities under the NIKE brand name, as well as markets apparel with licensed college and professional team and league logos. Additionally, it offers licenses to produce and sell NIKE brand swimwear, team sports apparel, training equipment, children’s clothing, electronic devices, eyewear, golf accessories, and belts. Nike, Inc. also markets its products under the brand names of Converse, Chuck Taylor, All Star, One Star, John Varvatos, Jack Purcell, Cole Haan, Bragano, and Hurley. The company sells its products to retail accounts, through stores, independent distributors, and licensees, as well as through its Website, nikestore.com. As of May 31, 2008, it operated 296 retail stores in the United States and 260 retail stores internationally. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.
Competitive Landscape Demand is driven by fashion and demographics. The profitability of individual companies depends on their ability to design and market attractive shoe models. Big companies have economies of scale in distribution and marketing. Small companies can compete successfully through superior design or marketing. Footwear Manufacture, Wholesale, and Retail Industry Forecast The output of US shoe and other leather product manufacturing is forecast to grow at an annual compounded rate of 4% between 2008 and 2013. Data Sourced: December 2009
Nike Inc. (HQ) Chief Executive Officer, Exec. Director: Mark G. Parker One Bowerman Drive Beaverton, OR 97005 United States Phone: 503-671-2500 Fax: 503-671-6300 Web Site: http://www.nike.com
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Paul Ebeling on E. I. DuPont de Nemours & Co. (DD), Harley-Davidson, Inc. (HOG), Nike, Inc. (NKE), and Las Vegas Sands Corp. (LVS)