The Red Roadmaster’s US Market Re-cap + Stock Talk ™
21 Decem ber 2009 (SAR) China
Date Line: Hong Kong
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Red’s Bull Alert At Friday's close, the DJIA rose 20.63,or 0.2% to close at 10,328.89. Broader indexes also traded on the Plus side. The S&P 500 added 6.39, or 0.58%, to close at 1,102.47, and the NAS gained 31.64, or 1.45%, to end the session at 2,211.69. US Stock Market Re-cap for the week ending 18 December 2009 W all Street gained on Quadruple W itching Friday US Stocks got a lift from the Tech sector on BlackBerry maker Research In Motion’s reported strong Q-3 results, and better than expected Q-4 guidance + software giant Oracle's Q-2 profit topped Wall Street's estimate. Research In Motion jumped 6.54, or 10%, to US$70/shr, and Oracle rose 1.46, or 6.4%, to US$24.34/shr. (Both covered in Stock to Watch Today). Tech stocks and financial stocks were hammered during the prior session, but rebounded to respective gains of 1.6% and 1.4% in Friday's session. The two leading sectors provided the leadership as the best 2 performing sectors joined up to make up about 35% of the total weight in the S&P 500. Trading volume on the NYSE hit its highest level of this year by eclipsing 3B/shrs, largely the result of this year's last Quadruple Witching Options Expiration Friday. NAS Adv/Vol/Dec 1663/2.86B/1094 NYSE Adv/Vol/Dec 1774/3.16B /1242 The S&P 500 is also due for a re-balance. Ordinarily high trading volume suggests heavy participation and a sense of conviction among participants, but since the surge in volume this session was fueled by traders concerned with squaring their positions the general sentiment of the market is not really effected. Advancing Sectors: Tech (+1.6%), Financials (+1.4%), Consumer Discretionary (+0.5%), Utilities (+0.5%), Energy (+0.3%), Health Care (+0.3%), Telecom (+0.2%), Materials (+0.1%) Declining Sectors: Consumer Staples (-0.3%), Industrials (-0.2%)
Stocks to W atch Today The ALLSTATE Corp. (ALL), Intel Corporation (INTC), International Business
Machines Corp (IBM), Microsoft Corporation (MSFT), Oracle Corp. (ORCL).
The Allstate Corporation (ALL) Up-date 2
Last Look: October
23, 2009 December 21, 2009 Paul A. Ebeling, Jnr. Analyst Today, let’s look at The ALLSTATE Corp. (ALL), the large US insurance company, from a Technical POV. The overall indications, after Friday’s (December 18, 2009) market action, are Neutral: in the near term Neutral., mid-term, Neutral. , and long term Neutral.. The recent candlestick analysis is: Neutral.
**Chart by: http://www.stockta.com
Latest News and Opinion: Allstate to Auction Recovered 1965 Volkswagen Bus, Donate Proceeds to Charity http://finance.yahoo.com/news/Allstate-to-Auction-Recovered-prnews-3802400294.html?x=0&.v=1 Friday’s Market Action
28.72 + .51
There are two Gaps open down between November 5 and 27, 2009, the near term resistance is 29.40, support at 28.73, and the 50 day (EMA) exponential moving average is 29.00. This is The Allstate Corporation (ALL): the company engages in the personal property and casualty insurance business, as well as in the life insurance, retirement, and investment products business in the United States and Canada. It operates in two segments: Allstate Protection and Allstate Financial. The Allstate Protection segment sells private passenger auto and homeowner’s insurance under ‘Encompass’ and ‘Deerbrook’ brand names primarily through agencies. Allstate Financial segment provides life insurance, retirement and investment products, and voluntary accident and health insurance products to individual and institutional customers. Its principal individual products comprise deferred, immediate, and indexed fixed annuities; interest-sensitive, traditional, and variable life insurance; and voluntary accident and health insurance. This segment markets its products through multiple intermediary distribution channels, including agencies and financial specialists, independent agents, banks, broker-dealers, and specialized structured settlement brokers. The Allstate Financial segment also offers various banking products and services consisting of certificates of deposit, money market accounts, savings accounts, checking accounts, and agency loans. The Allstate Corporation was founded in 1931.
Competitive Landscape Demand is driven by demographics and commercial transactions. Demand is also driven by legal or financial requirements. Consumers are usually required by states to buy auto insurance and by lenders to buy homeowners insurance, for example. The profitability of individual companies depends on effective marketing and on the ability to accurately estimate future payments. Large companies have big economies of scale in administration and in access to capital, as well as advertising and marketing. Small companies can compete successfully by specializing in particular products or industries. Average annual revenue per worker is around US$400,000, the industry is not labor-intensive. Insurance Carriers Industry Forecast The output of US insurance, which is an indicator for insurance carriers, is forecast to grow at an annual compounded rate of 1% between 2008 and 2013. Data Sourced: December 2009
Allstate Corp. (HQ) Thomas J. Wilson II, Chairman, Chief Exec. Officer and President,
2775 Sanders Road Northbrook, IL 60062 United States Phone: 847-402-5000 Fax: 847-402-2351
International Business Machines Corp (IBM) Up-date 11 Last Look: December 2, 2009 December 21, 2009 Paul A. Ebeling, Jnr. Analyst Today let’s look at “Big Blue”, International Business Machines Corporation (IBM), the World’s #1 provider of computer products and computer services, from a Technical POV. The overall indications, after Friday’s (December 18, 2009) market action, are Bullish : in the near term Neutral, mid-term Very Bullish , and long term Very Bullish . The recent Candle Stick analysis is: Very Bullish
**Chart by: http://www.stockta.com
Latest News and Opinion: I.B.M. Buys Lombardi Software
http://dealbook.blogs.nytimes.com/2009/12/18/ibm-buys-lombardi-software/? partner=yahoofinance Friday’s Market Action
There a Homing Pigeon on December 18, and two Gaps open up between July 15 and 17, 2009 at 103.62/113.16, the near term resistance is 132.66, support at 127.86, and the 50 day (EMA) exponential moving average is 125.76. This is IBM (IBM): “Big Blue” is the world's top provider of computer products and services. IBM is a leader in every market in which it competes, the company makes mainframes and servers, storage systems, and peripherals. Though perhaps still best known for its hardware, IBM's growing services business now accounts for more than half of its sales. Its IT services arm is the largest in the world and the company is also one of the largest providers of software, ranking #2, behind Microsoft, and semiconductors.
The Competitive Landscape Demand for IT services is driven by rapid technological advances, but spending for these expensive products depends on the health of the US economy. The profitability of companies in the industry depends on maintaining technical expertise and on good marketing. Small companies can compete effectively by specializing in market niches or by partnering with larger companies that want to offer a broad array of services. Only the large companies can provide outsourcing services to big corporate customers. Average annual revenue per employee is close to US$200,000. Information Technology Industry Forecast The output of US computer and data processing is forecast to grow at an annual compounded rate of 6.1% between 2008 and 2013. Data Sourced: December 2009 IBM (HQ) Chairman, President, and CEO Samuel J. Palmisano New Orchard Rd. Armonk, NY 10504 United States Phone: 914-499-1900 Toll Free: 800-426-4968 http://www.ibm.com IBM Subsidiaries Cognos ULC IBM Australia Limited IBM Canada Ltd.
Intel Corporation (INTC) Up-date 12
December 7, 2009 December 21, 2009 Paul A. Ebeling, Jnr. Analyst Today let’s look Intel Corporation (INTC), the World’s #1 manufacturer of semiconductors, from a Technical POV. The overall indications, after Friday’s (December 18, 2009) market action, are Neutral : in the near term Neutral , mid-term Neutral , and long term Bullish. The recent Candle Stick analysis is: Neutral
**Chart by: http://www.stockta.com
Latest News and Opinion: Stocks' 'Nightmare' Decade http://online.wsj.com/article/SB10001424052748704786204574607993448916718.html? ru=yahoo&mod=yahoo_hs Friday’s Market Action Close 20.46 + .59 Volume 86,301,900/shrs There is a Homing Pigeon on December 2, and 1 Gaps open up on July 15, 2009 at 16.89/17.72, the near term resistance is 19.87, support at 19.61, and the 50 day (EMA) exponential moving average is 19.61. This is Intel Corporation (INTC): Intel is #1 in semiconductors. The company holds the lion’s share in the market for microprocessors that go into desktop and notebook computers, and also into computer servers. For a time rival AMD took some of Intel’s market share, but Intel fought back with faster processors and advanced manufacturing technology and ate AMD. Intel makes embedded semiconductors for the industrial equipment and networking gear markets. Most computer makers use Intel processors; PC giants Dell (18% of sales) and Hewlett-Packard (17%) are the company’s largest customers. The Asia/Pacific region generates more than half of Intel’s revenues.
Competitive Landscape The industry depends highly on demand from the computer industry and makers of telecommunications products, which can vary sharply from year to year. Companies can be successful producing standard parts at low cost or by producing highly specialized components. Small companies can compete effectively with large ones by producing specialized products or developing new applications. Technological expertise is extremely important. The industry is highly automated: average annual revenue per employee is about US$250,000.
Intel Corporation (HQ) Chairman Craig R. Barrett 2200 Mission College Blvd. Santa Clara, CA 95054-1549 United States Phone: 408-765-8080 Fax: 408-765-3804 Toll Free: 800-628-8686
http://www.intel.com Intel Corp. Subsidiaries Havok.com Inc. IM Flash Technologies, LLC Intel (China) Ltd.
Microsoft Corporation (MSFT) Up-date 14
November 13, 2009 December 21, 2009 Paul A. Ebeling, Jnr. Analyst Today letâ€™s look at Microsoft Corporation (MSFT), the World's #1 software company, from a Technical POV. The overall indications, after Fridayâ€™s (December 18, 2009) market action, are Bullish : in the near term Neutral, mid-term Very Bullish , and long term Bullish ,. The recent Candle Stick analysis is: Bullish
**Chart by: http://www.stockta.com
Latest News and Opinion: Cramer's Stop Trading! The Best Conference Call of the Quarter (12/18/09) http://seekingalpha.com/article/178998-cramer-s-stop-trading-the-best-conference-call-of-thequarter-12-18-09?source=yahoo Fridayâ€™s Market Action Close 30.36 +. 76 Volume 94,099,700/shrs There is a Grave Stone Doji on December 16, is are two Gaps open up between October 8, and 23, 2009 at 25.18/27.88, the near term resistance is NIL, support 29.84 and the 50 day (EMA) exponential moving average is 28.67. This is Microsoft Corporation (MSFT): The World's #1 software company provides a variety of products and services, including its Windows operating systems and Office software suite. The company has expanded into markets such as video game consoles, server and storage software, and digital music players. Microsoft has reached settlements to end a slew of antitrust investigations and lawsuits, including agreeing to uniformly license its operating systems and allowing manufacturers to include competing software with Windows. In 2008 Microsoft made repeated efforts to acquire Yahoo! but was rebuffed by that company's board of directors.
Microsoft Corporation (HQ) Steven A. Ballmer Chief Exec. Officer and Exec. Director One Microsoft Way Redmond, WA 98052-6399 United States Phone: 425-882-8080 Fax: 425-936-7329 http://www.microsoft.com
Microsoft Subsidiaries Avanade Inc. ContentGuard, Inc. Ensemble Studios
Oracle Corp. (ORCL) Up-date 10
Last Look: December 11,
December 21, 2009 Paul A. Ebeling, Jnr. Analyst Today let’s look at Oracle Corp. (ORCL), the Giant enterprise software company, from a Technical POV. The overall indications, after Friday’s (December 18, 2009) market action, are Bullish; in the near term Neutral, mid-term Bullish , and long term Neutral. The recent Candle Stick analysis is: Neutral
**Chart by: http://www.stockta.com
Latest News and Opinion: Oracle Expects Sun Deal Approval Next Month
Fridayâ€™s Market Action
There are two Gaps open up between December 10 and 18, 2009, the near term resistance is NIL support at 23.98, and the 50 day (EMA) exponential moving average is 22.28. This is Oracle Corp. (ORCL): Oracle is an enterprise software company, engages in the development, manufacture, distribution, servicing, and marketing of database, middleware, and application software worldwide. The companyâ€™s New Software Licenses segment provides licenses for database and middleware software, including database management software, application server software, business intelligence software, identification and access management software, analytics software, content management software, development tools, and data integration software; and applications software that offers enterprise information for customer relationship management, financials, insurance, human resources, maintenance management, manufacturing, marketing, order fulfillment,
product lifecycle management, procurement, projects, sales, services, enterprise resource planning, and supply chain planning sectors. It’s Software License Updates and Products Support segment offers customers with rights to unspecified software product upgrades and maintenance releases, and Internet access to technical content, as well as Internet and telephone access to technical support personnel. The company’s Consulting segment designs, implements, deploys, and upgrades database, middleware, and applications software. Its On Demand segment provides multi-featured software and hardware management, and maintenance services for clients deploying its software products; and support centers, assistance, technical account management, configuration and performance analysis, personalized support, annual on-site technical services, and other related services. The company’s Education segment offers online courses and self paced media training on CD-ROMs. It distributes its products and services to resellers, system integrators/implementers, consultants, education providers, Internet service providers, network integrators, and independent software vendors. Competitive Landscape The US economy heavily influences business spending for software products. The success of programming companies depends heavily on strong technical expertise. The success of packagedsoftware companies depends on technical expertise and good marketing. Small software companies compete mainly by developing packaged products in small niches or producing custom products for individuals. Many small companies form alliances with larger ones to market their products. Computer Software Development Industry Forecast
The output of US software publishers is forecast to grow at an annual compounded rate of 6 % between 2008 and 2013. Data Sourced: December 2009 Oracle Corp. (HQ) Co-Founder, Chief Exec. Officer: Lawrence J. Ellison 500 Oracle Parkway Redwood Shores, CA 94065 United States Phone: 650-506-7000 Fax: 650-506-7200 http://www.oracle.com
Oracle Subsidiaries Crystal Ball i-flex Solutions Limited Oracle Corporation Canada Inc.
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