24th July, 2009
Paul A. Ebeling, Jr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highlyregarded financial market letter, read by opinion makers, business leaders and organizations around the world. Ebeling has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/ Support Levels.
Paul A. Ebeling, Jr. firstname.lastname@example.org
The Red Roadmasterâ€™s US Market Re-cap + Stock Talk â„˘
Alert: The Leading NAS tallied up its 12th straight winning day, it longest streak since 1992.
Re-cap of the US Stock Market Action for July 24, 2009 + Stock Talk The DJIA is back above 9,000
US Stocks ran North Thursday, sending the DJIA above the Key 9,000 Level for the first time since January 2009, as all 10 S&P 500 benchmark sectors finished in the Green, and sliced through the Key technical resistance level at 960. Savvy market observers note that the breakout is an indication that the S&P 500 will look to the 1,000 level in the near to mid-term. The S&P 500 is now up 44.3% since its 12 yr closing low on March 9, 2009 The DJIA ran North 188.03 pts, or 2.12% to close at 9,069.29, the highest close since November 2008, and the 1st close above 9,000 since January 2009, the S&P 500 gained 22.22 pts, or 2.33% to close at 976.29, and The leading NAS tallied up a + 47.22 pts, or 2.45% to end the session at 1,973.60. 3M (featured in Stock Talk yesterday) rose 7.4% to US$69.43 and contributed the most to the Dow's gain, as it beat most analysts' expectations, and lifting its revenue outlook for 2009. Asian stock markets are climbing today as I write this column as economic data and company earnings reinforced confidence that a recovery from the global recession is now clearly under way. Today's Big Q: Red, how do I find stocks to buy? The Big A: "Simple, find the best ideas (check Stocks to Watch Today daily) and adjust the target price for risk, eliminate your fear and greed." Stocks to Watch Today
Bank of America (BAC), Baidu, Inc. (BIDU), The Walt Disney Company (DIS), Fifth Third Bankcorp (FITB), IBM (IBM), and
Bank of America (BAC) Up-date 54 July 24, 2009 Paul A. Ebeling, Jr. Analyst Today let’s look at Bank of America (BAC), the USA’s big brand bank, from a Technical POV. The overall indications, after Thursday’s (July 23, 2009) market action are, overall 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: New Issue-Bank of America sells US$2.5B 7-yr Sr notes
http://www.reuters.com/article/marketsNews/idINN2362793020090723?rpc=44 Thursday Market Action Close 12.69 + .46
There is one Gap open up on Mar 10, 2009 at 3.77/4.20, the near term resistance is 13.72, support at 12.59, and the 50 day (EMA) exponential moving average is 11.96. This is Bank of America (BAC): This Company has operations in 32 states, the District of Colombia and 44 foreign countries. In the US it has more than 6,000 retail banking centers and 18,500 ATMâ€™s. Two key areas of business for this company are Global Consumer and Small Business Banking. Global Corporate and Investment Banking provide comprehensive financial solutions to their institutional clients. Global Wealth and Investment Management offers banking and investment services to more than 3 million individual and institutional customers World Wide. Recent Major developments have afforded the opportunity to purchase various marquee businesses such as Countrywide Financial, LaSalle Bank, U.S. Trust Corp, MBNA, and FleetBoston. Acquiring of these businesses will provide BAC a strong presence in their mutually respective core markets. Competitive Landscape Leveraged loans, collateralized debt obligations and subprime-related assets will continue to be a source of uncertainty for the entire sector. Government intervention has played a role in strengthening bank balance sheets and consumer confidence. The government recently released a framework for the purchase of the aforementioned toxic assets. The industry is heavily tied to the extension of credit to credit worthy consumers. As deterioration in consumer based businesses continues in the US coupled with tighter lending standards, banks will find it difficult to identify lucrative investment opportunities. Bank of America (HQ) Chairman and Chief Director: Walter E Massey 100 North Tryon St. 18th Fl Charlotte, NC 28255 United States Phone: 704-386-5681 Fax: 704-356-6699 http://www.BankofAmerica.com
Baidu, Inc. (BIDU) Up-date 1 February 11, 2009 Paul A. Ebeling, Jr. Analyst Dear Reader, Today, letâ€™s look at Baidu, Inc. (BIDU), the leading China search engine, from a Technical POV. The overall indications, after Thursdayâ€™s (July 23, 2009) market action, are Neutral; in the near term Neutral, mid-term Neutral, and long term Bearish. The recent Candle Stick analysis is:
**Chart by: http://www.stockta.com
Latest News: Baidu sees new ad system boosting Q-3 sales http://finance.yahoo.com/news/Baidu-sees-new-ad-system-rb-1943366982.html?x=0&.v=1
Thursdayâ€™s Market Action
There is a DOJI on July 17 and five Gaps open up between Mar 4 & Jul 15 , 2009 at 147.00/302.50, the near term resistance is 350,97, support at 328.47, and the 50 day (EMA) exponential moving average is 263.45. This is Baidu, Inc. (BIDU): Baidu.com provides Chinese language Internet search services primarily in the People's Republic of China. The company offers a Chinese language search platform, which consists of Web sites and online application software; and Baidu Union, a network of third-party Web sites and software applications. Its products include Baidu Web Search that allows users to locate information, products, and services using Chinese language search terms; Baidu Post Bar and Baidu Knows, which provides users with a query-based searchable community; and Baidu News that provides links to local, national, and international news. The company also offers Baidu MP3 Search that provides algorithmgenerated links to songs and other multimedia files; Baidu Image Search, which enables users to search various images on the Internet; Baidu Space to create personalized homepages in a query-based searchable community; Baidu Encyclopedia; and various online search products. In addition, it provides Baidu Desktop Search that enables users to search files without a Web browser; Baidu Sobar, which makes search function available on every Web page that a user browses; and Baidu Anti-Virus that provides anti-virus software products and computer virus-related news. Further, the company offers Japanese search services, including Web search, image search, video search, and blog search capabilities. Its services enable users to find relevant information online, including Web pages, news, images, and multimedia files. The company also offers online marketing services to its P4P and tailored solutions customers directly, as well as through its distribution network. It serves small and medium enterprises; corporations; and e-commerce, information technology services, consumer products, manufacturing, health care, entertainment, education, financial services, and real estate industries.
Industries Where Baidu.com Competes Media: China Internet Search & Navigation Services: China
Baidu, Inc. (HQ) Founder, Chairman and Chief Exec. Officer Yanhong Li 12th Floor Ideal International Plaza No 58 West-North 4th Ring Beijing, 100080 China Phone: 86 10 8262 1188 Fax: 86 10 8260 7007 http://www.baidu.com
The Walt Disney Company (DIS) Up-date 7 July 24, 2009 Paul A. Ebeling, Jr. Analyst Today let’s look at The Walt Disney Company (DIS), Mickey’s World, from a Technical POV. The overall indications, after Wednesday’s (July 23 2009) market action, are Neutral: in the near term Neutral, midterm Neutral, and long term Neutral. The recent Candle Stick Analysis is: Neutral.
Latest News: Disney's Bob Iger on Digital, Monetization, and the Consumer
http://www.cnbc.com/id/32108350/site/14081545?__source=yahoo|headline|quote|text|&par=yahoo Thursdayâ€™s Market Action Close 26.80
There is a Bearish Engulfing Candle on July 15, and two Gaps open up between July 15 & 15, 2009 at 23.21/24.36, support is 25.87, the near term resistance NIL and the 50 day exponential moving average at 23.56. This is The Walt Disney Company (DIS): The King of the Magic Kingdom is a mouse, we all know him as Mickey. The Walt Disney Company is the world's #2 media conglomerate, # 1 is Time Warner (TWX) with assets encompassing movies, music, publishing, television, and theme parks. Disneyâ€™s TV holdings include the ABC TV network + 10 broadcast stations, and a portfolio of cable networks including ABC Family, A&E Television Networks (37%-owned), and ESPN (80%). Walt Disney Studios produces films through imprints; Walt Disney Pictures, Touchstone, Pixar, and Miramax. In addition, Walt Disney Parks and Resorts is one of the top theme park operators in the world, we all know them as Walt Disney World and Disneyland Resorts. Disney competitors are primarily in the Film & Video industry, DIS also competes in the Internet Content Providers, Music, and Publishing sectors, the competition is; CBS Corp, News Corp, and Time Warner. The Competitive Landscape In the motion picture production and distribution sector consumer spending drives demand. The profitability of individual companies depends on creativity, marketing, and distribution. Large companies have the advantages of long term contracts with key actors and directors, a permanent staff of technical employees, and wide distribution networks. Small companies compete by creating marketable movies, often for niche audiences, on low budgets. Although production work is labor-intensive, the value of the product results in high average annual industry revenue of US$300,000 per employee. The Walt Disney Company (HQ) Robert A. Iger, President, CEO, and Director 500 S. Buena Vista St. Burbank, CA 91521-9722 United States Phone: 818-560-1000 Fax: 818-560-1930 http://disney.go.com/
Fifth Third Bancorp (FITB) Up-date 2 July 24, 2009 Paul A. Ebeling, Jr. Analyst Today, letâ€™s look at Fifth Third Bankcorp (FITB), the large regional full service customer friendly bank, from a Technical POV. The overall indications, after Wednesdayâ€™s (July 23, 2009) market action, are Neutral: in the near term Neutral, mid-term Bullish, and long term Neutral. The recent Candle Stick analysis is: Very Bearish.
**Chart by: http://www.stockta.com
Latest News: Fifth Third reports Q-2 profit on sale of controlling stake in processing business, shares soar
Thursdayâ€™s Market Action Close 8.01 + 1.00 Volume 70,484,300/shrs There is a Bearish Doji Star on July 23, and one Gap open up on July 23, 2009 at 7.21/7.77; the near term resistance is 8.67, support at 7.53, and the 50 day (EMA) exponential moving average is 6.70. This is Fifth Third Bankcorp (FITB): The Company operates as a diversified financial services holding company. The companyâ€™s Commercial Banking segment offers banking, cash management, and financial services; traditional lending and depository products and services; other services, including foreign exchange and international trade finance, derivatives and capital markets services, asset-based lending, real estate finance, public finance, commercial leasing, and syndicated finance for business, government, and professional customers. Its Branch Banking segment provides a range of deposit and loan, and lease products to individuals and corporations. Its products include checking and savings accounts, home equity loans and lines of credit, and credit cards and loans for automobile and personal financing needs. The companyâ€™s Consumer Lending segment involves in mortgage and home equity lending activities, such as origination, retention, and servicing of mortgage and home equity loans; other indirect lending activities, which include loans to consumers through mortgage brokers, automobile dealers, and federal and private student education loans. Its Investment Advisors segment offers a range of investment alternatives for individuals, companies, and not-for-profit organizations. This segment also offers investment, trust, asset management, retirement planning, and custody services, as well as retail brokerage services to individual clients and broker dealer services to the institutional marketplace. Its Fifth Third Processing Solutions segment offers electronic funds transfer, debit, credit, and merchant transaction processing services; and data processing services. As of March 18, 2008, Fifth Third Bancorp. operated 1,227 full-service banking centers, including 102 Bank Mart locations and 2,211 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Pennsylvania, Missouri, and Georgia. The company was founded in 1862 and is headquartered in Cincinnati, Ohio.
Competitive Landscape Demand for banking services is closely tied to economic activity and the level of interest rates. The profitability of individual banks depends on marketing skills, efficient operations, and good risk management. Large economies of scale exist in some segments of the industry, which has encouraged industry consolidation. Smaller banks can compete successfully in segments where customer service or knowledge of the local market is more important. The industry is capital-intensive and highly automated: annual revenue per employee is close to US$300,000.
Banks and Credit Unions Industry Forecast The output of US banks and credit unions is forecast to grow at an annual compounded rate of 1% between 2008 and 2013. Data Sourced: December 2008.
Fifth Third Bankcorp (HQ) Chairman, Chief Exec. Officer, Pres, Kevin T. Kabat Fifth Third Center 38 Fountain Square Plaza Cincinnati, OH 45263 United States Phone: 513-534-5300 Fax: 513-579-6246 http://www.53.com
International Business Machines Corp. (IBM) Up-date 14 July 24, 2009 Paul A. Ebeling, Jr. 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 indicators, after Thursday’s (July 23, 2009) market action, are Neutral: in the near term Neutral, mid-term Neutral, and long term Very Bullish. The recent candlestick analysis is Very Bullish.
**Chart by: http://www.stockta.com
Latest News: Zacks Earnings Trends Highlights: General Mills, McCormick, Walgreen, Apple, Google, IBM, Corning, Goldman Sachs, Family Dollar, TJX Companies, Tesoro and Valero
http://finance.yahoo.com/news/Zacks-Earnings-Trends-zacks-2522430788.html?x=0&.v=1 Thursday’s Market Action Close 117.06 + 1.49
There is a Bullish Engulfing Candle on July 23 and three Gapsopen up on Mar 31 and July 17, 2009 at 94.74/113.16, the near term resistance is NIL, support at 116.30, and the 50 day (EMA) exponential moving average is 106.13. 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 both 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. 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.
JP Morgan Chase & Company (JPM) Up-date 22 July 24, 2009 Paul A. Ebeling, Jr. Analyst Today letâ€™s look at JP Morgan Chase (JPM), the # 3 financial services firm in the USA from a Technical POV. The overall indications, after Thursdayâ€™s (July 23, 2009) market action, are Neutral: 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: JP Morgan appoints new Asia debt capital markets head http://www.reuters.com/article/marketsNews/idINHKG22080720090723?rpc=44
Thursdayâ€™s Market Action Close 38.15 + 1.32
There is a DOJI on July 20 and a Gap open up on Apr 9 at 27.83/30.02, the near term resistance is 38.94, support at 37.24, and the 50 day (EMA) exponential moving average is 34.33. This is JP Morgan Chase & Company (JPM): JPM is the #3 financial services firm in the USA behind Citi and Bank of America with more than 3,000 bank branches and growing. It is also among the nation's top mortgage lenders, automobile loan writers, and credit card issuers. JPM is also into investment banking and asset management. The company's subsidiaries include JPMorgan Private Bank and institutional investment manager JPMorgan Asset Management with US$1.6T in assets under management. In 2008 JPMorgan Chase bought Bear Stearns and Washington Mutual. The Competitive Landscape Demand for banking services in the USA is closely tied to economic activity and the level of interest rates. The profitability of individual banks depends on their marketing abilities, efficient operations, and good risk management. Large economies of scale exist in some segments of the banking industry, which has encouraged industry consolidation. Smaller banks can compete successfully in segments where customer service or knowledge of the local market is more important. The industry is capital intensive and highly automated: annual revenue per employee is about US$300,000. Banks and Credit Unions Industry Forecast The output of banks and credit unions in the USA is forecast to grow at an annual compounded rate of 5.1% 2008 and 2013. JP Morgan Chase & Company (HQ) Chairman, President, and CEO James (Jamie) Dimon
270 Park Ave. New York, NY 10017 United States Phone: 212-270-6000 Fax: 212-270-1648 http://www.jpmorganchase.com
JPMorgan Chase Subsidiaries Bear Stearns Merchant Banking Bear, Stearns Securities Corp. Bear Wagner Specialists LLC Chase Co (formally Washington Mutual) Disclaimer DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS WEBSITE OR IN OUR NEWSLETTERS. Red Roadmaster is not registered as a securities broker-dealer or an investment advisor either
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Red Roadmaster Stock Talk featuring BAC, BIDU, DIS, FITB, IBM