The Red Roadmaster’s US Market Re-cap + Stock Talk ™
July 14, 2009 Once again the NAS, SP 500, and NAS came alive on a Monday with the Financials and Techs leading the charge North in a move that I discussed in yesterday's Red Roadmaster Market Report ™ What to look for this week and down the line section…
The NAS, DJIA and S&P 500 all posted 2% + gains, the best session since June 1.
Re-cap of the US Stock Market Action for July 13, 2009 and Stock Talk. US stocks rallied yesterday on the lead of the financial and tech sectors, the traditional leaders of a new Bull Market. Strength among regional banks (+6.3%) and diversified banks (+8.0%) helped the KBW Banking Index tally up a + 6.5%, and the broader financial sector also gained 6.5% in its best single session advance by percent in almost two months. The DJIA rose 185.16 pts, 2.27%, to close at 8,331.68, the S&P 500 closed + 21.92 pts, 2.49%, at 901.05, and the NAS tallied up 37.18 pts, 2.12% to close the session at 1,793.21. Stocks finished on the session highs. Volume and Breadth: volume was light on the NYSE, with 1.19B/shrs changing hands, below last year's estimated daily average of 1.49B/shrs, and on the NAS about 1.92B/shrs traded, way under last year's daily average of 2.28b/shrs. Advancing stocks outnumbered decliners on the NYSE by a ratio of 5 to 1 and on the NAS by 20 to 7. Stocks to Watch Today Apple, Inc (APPL), American International Group, Inc. (AIG), Amazon.com, Inc.(AMZN), Cisco Systems, Inc. (CSCO), Google Inc. (GOOG), and Wells Fargo & Company (WFC).
Apple, Inc. (AAPL) Up-date 35 July 14, 2009 Paul A. Ebeling, Jr. Analyst Today letâ€™s look at Apple, Inc (APPL), the creator of the iPhone and other wonderful stuff, from a Technical POV. The overall indications, after Mondayâ€™s (July 13, 2009) market action, are Bullish: in the near term Bullish, mid-term Bullish, and long term Bullish. Recent Candle Stick analysis is Very Bullish.
**Chart by: http://www.stockta.com
Latest News: Google CEO should step down from Apple's board http://www.marketwatch.com/story/schmidt-should-step-down-from-apple-board?siteid=yhoof
Monday’s Market Action Close 142.34
There is a Bullish Engulfing Candle on July 10 and six Gaps open up between Mar 11 and May 27, 2009 at 89.17/130.91, the near term resistance is at 143.52, support at 139.42, and the 50 day exponential moving average is 133.50. This is Apple, Inc. (AAPL): Apple, the world’s computer/gadget innovator has caused a revolution in personal computing and digital media distribution. The company's desktop and laptop computers feature its OS X operating system, they include its Mac mini, iMac, and MacBook for the consumer and education markets, and powerful Mac Pro and MacBook Pro for high end consumers and professionals involved in design and publishing. Apple posted a huge success with its iPod digital music players, and iTunes, its online music store. Other Apple products: iPhone mobile phones, Xserve, servers, Airport, wireless networking equipment, plus publishing and multimedia software. Apple’s FileMaker sub provides database software. Apple, Inc. ranks #103 in the Fortune 500 Companies List. The Competitive Landscape Computer product demand is directly tied to consumer and business income. The profitability of individual computer companies depends on purchasing and production efficiencies, and on technological expertise. Large companies have economies of scale in purchasing and production. Small companies can compete successfully by specializing in certain products or by developing superior technology. The industry is capital-intensive and highly automated: annual revenue per employee is about US$500,000. The output of US computer manufacturing is forecast to grow at an annual compounded rate of 4.7 % between 2008 and 2013. Apple, Inc. (HQ) Steven P. (Steve) Jobs, CEO and Director 1 Infinite Loop Cupertino, CA 95014 United States http://www.apple.com
Apple Subsidiaries Apple Computer (UK) Limited FileMaker, Inc
American International Group, Inc. (AIG) Up-date 17 July 14, 2009 Paul A. Ebeling, Jr. Analyst Today letâ€™s have a look at American International Group, Inc. (AIG), one of the World's largest insurance firms, from a Technical POV. The overall indications, after Mondayâ€™s (July 13, 2009) market action, are Bearish; in the near term Bearish, mid-term Neutral, and long term Bearish. Recent Candle Stick Analysis is: Neutral.
**Chart by: http://www.stockta.com
Latest News: We Called It: AIG's Pricing Advantage http://www.thestreet.com/_yahoo/story/10541828/1/we-called-it-aigs-pricing-advantage.html? cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
Mondayâ€™s Market Action Close
There one Gaps open up on July 13, 2009 at 12.44/12.48, the near term resistance is 19.00, support is 13.83, and the 50 day (EMA) exponential moving average is 25.70. This is American International Group, Inc. (AIG): the Company through its subsidiaries provides insurance and financial services in the United States and internationally. It operates in four segments: General Insurance, Life Insurance and Retirement Services, Financial Services, and Asset Management. The General Insurance segment underwrites various business insurance products, including large commercial or industrial property insurance, excess liability, inland marine, environmental, workers compensation, and excess and umbrella coverageâ€™s. This segment also offers various specialized forms of insurance, such as aviation, accident and health, equipment breakdown, directors and officers liability, difference-in-conditions, kidnap-ransom, export credit and political risk, and professional errors and omissions coverageâ€™s. In addition, it provides property and casualty reinsurance products to insurers; automobile insurance products; residential mortgage guaranty insurance products; and second-lien and private student loan guaranty insurance products. The Life Insurance and Retirement Services segment offers individual and group life, payout annuities, endowment, and accident and health policies, as well as retirement savings products consisting of fixed and variable annuities. The Financial Services segment provides aircraft and equipment leasing, capital market transactions, consumer finance, and insurance premium financing. The Asset Management segment operations comprise investment-related services and investment products, including institutional and retail asset management, broker-dealer services, and spread-based investment products. Competitive Landscape Demand is driven by demographics and commercial transactions. 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. Small companies can compete successfully by specializing in particular products or industries. 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 2008 American International Group, Inc. (HQ) Chairman of AIG Investments and Chief Exec. of AIG Investments Win Jay Neuger CFA 70 Pine Street New York, NY 10270 United States Phone: 212-770-3099 Fax: 212-425-3499 http://www.aig.com
AIG Subsidiaries 21st Century Insurance Company AIG American General Life Companies AIG Annuity Insurance Company
Amazon.com, Inc. (AMZN) Up-date 9 July 14, 2009 Paul A. Ebeling, Jr. Analyst Today let’s look at Amazon.com, Inc. (AMZN), the premier online (AKA World’s Biggest) marketer/seller, from a Technical POV. The overall analysis after Monday’s (July 13, 2009) market action is Neutral: in the near term Neutral, mid-term Bullish, and long term Neutral. The recent Candle Stick Analysis is Very Bullish.
**Chart by: http://www.stockta.com
Latest News: Amazon-Netflix rumors fly http://seattle.bizjournals.com/seattle/stories/2009/07/13/daily11.html?ana=yfcpc
Monday’s Market Action Close 81.74 + 3.84
There is a DOJI on July 10 are two Gaps open up between Jan 30 and Mar 31, 2009 at 51.85/72.12, the near term resistance is 82.27, support is 79.79, and the 50 day (EMA) exponential moving average is 79.59. This is Amazon.com, Inc.(AMZN); Not too long ago, remember?, Jeff Bezos, Amazon.com’s founder/24% owner, opened the World’s biggest book store, since then Amazon.com has become the world’s biggest sell everything and all store, as the expansion pushed Amazon.com in multiple directions. The main web site www.amazon.com offers millions of books, music, DVDs, and videos, which account 60% + of company sales. Amazon.com also sells auto parts, toys, tools, electronics, home furnishings, apparel, health and beauty aids, prescription drugs, groceries, and lots of services like film processing, etc.. Amazon.com has been the model for Internet companies that put market share ahead of profits, and those huge profits led to acquisitions funded by rocketing market capitalization, begetting a model that is now focused on profits. AMZN is ranked #171 in FORTUNE 500 & #301 in FT Global 500. The Competition Amazon.com’s competitors are primarily in the Music, Video, Book & Entertainment Retail industry. Amazon.com also competes in the Apparel & Accessories Retail, Auto Parts Retail, and Camera & Optical Goods Retail sectors. Examples: Barns & Noble, Borders, Columbia House and eBay.
Amazon.com (HQ) Chairman, President, and CEO Jeffrey P. (Jeff) Bezos SVP and CFO Thomas J. (Tom) Szkutak 1200 12th Ave. South, Ste. 1200 Seattle, WA 98144-2734 United States (Map) Phone: 206-266-1000 http://www.amazon.com
Amazon.com Subsidiaries Amazon.co.uk Ltd Amazon.de GmbH Audible, Inc
Cisco Systems, Inc (CSCO) Up-date 9 July 14, 2009 Paul A. Ebeling, Jr. Analyst Today letâ€™s look at Cisco Systems, Inc. (CSCO), the backbone of the Internet, from a Technical POV. The overall indications, after Mondayâ€™s (June 13, 2009) market action, are overall Neutral, in the near term Neutral, mid-term Bearish, and long term Neutral. The recent Candle Stick Analysis is Bearish
**Chart by: http://www.stockta.com
Latest News: Tech stocks flex their muscles ahead of earnings season http://www.marketwatch.com/story/with-earnings-ahead-tech-stocks-get-off-to-a-weak?siteid=yhoof
Mondayâ€™s Market Action
There is Hammer on July 13 and a Gap open down on July 2, 2009 at 18.76/18.73, support at 18.49, the near term resistance is 19.10, the 50 day exponential moving average at 19.10. This is Cisco Systems (CSCO): Cisco Systems routes packets and routs competitors with equal efficiency. The Company dominates the market for IP-based networking equipment, providing routers and switches used to direct data, voice, and video traffic. Some of their other products include remote access servers, IP telephony equipment, optical networking components, Internet conferencing systems, set-top boxes, and network service and security systems. Cisco sells its products primarily to large enterprises and telecommunications service providers, but it also markets products designed for small businesses and consumers through its Linksys division. If you are connected to the internet via a wireless network at home or in your office you likely have Linksys system. Note: The industry sector in which Cisco competes depends on purchases from businesses, telephone companies, cable companies, data communications providers, + TV and radio broadcasters. Competitive Landscape Profitability for individual companies with in the sector is linked to technical innovation and the ability to secure high-volume contracts from large customers. Small companies can be successful if they make highly specialized products. There are large economies of scale in manufacturing standard products, but many products are specialized and produced in small manufacturing plants. Annual revenue per employee in a large plant varies from US$500,000 to US$1M. The output of US communication equipment manufacturing is forecast to grow at an annual compounded rate of 2 percent between 2007 and 2012. Cisco Systems, Inc. (HQ) John T. Chambers, Chairman and CEO 170 WEST TASMAN DR SAN JOSE CA 95134-1706 4085264000 Phone: 408-526-4000 Fax: 408-526-4100 www.cisco.com
Google Inc. (GOOG) Up-date 11 July 14, 2009 Paul A. Ebeling, Jr. Analyst Today, letâ€™s look at Google Inc. (GOOG), the Internet Search Engine leader, from a Technical POV. The overall analysis after Mondayâ€™s (July 13, 2009) market action is Neutral: in the near term Neutral, midterm Neutral, and long term Neutral. Recent Candle Stick Analysis is: Neutral.
**Chart by: http://www.stockta.com
Latest News: Google Volatility Levels Suggest a Big Swing Soon http://online.wsj.com/article/SB124752516561035211.html?ru=yahoo#mod=yahoo_hs
Mondayâ€™s Market Action Close 434.79
There are two Gaps open down between Jun 12 and July 2, 2009 at 428.37/415.41, the near term resistance is 443.79, support at 416.66, and the 50 day (EMA) exponential moving average is 407.05. This is Google Inc. (GOOG): Google operates the leading Internet search engine, offering targeted search results from billions of Web pages. Results are based on a proprietary algorithm -Google's technology for ranking Web pages is called PageRank. The company generates nearly all of its revenue through ad sales. Advertisers can deliver relevant ads targeted to search queries or Web content. Google also operates the Google Network, a network of third party customers that use Google's advertising programs to deliver relevant ads to their own Web sites. Founders Sergey Brin and Larry Page each have nearly 30% voting control of the company. The Competitive Landscape Demand comes largely from corporations that sell consumer products, and telecommunications, entertainment, and financial services. The profitability of individual companies depends on creative skills and good marketing. Large companies are advantaged in being able to serve the varied needs of large customers, but small companies can be competitive through special talent or lower pricing or through special services. The industry is labor intensive, but the high value of the product produces annual revenue per employee of about US$150,000. Advertising and Marketing Industry Forecast The output of US advertising services is forecast to grow at an annual compounded rate of 5.5 % between 2008 and 2013. Google Inc. (HQ) Chairman & Chief Exec. Officer Eric E. Schmidt Ph.D.
1600 Amphitheatre Parkway Mountain View, CA 94043 United States Phone: 650-253-0000 Fax: 650-253-0001 http://www.google.com
Wells Fargo & Company (WFC) Up-date 25 July 14, 2009 Paul A. Ebeling, Jr. Analyst Today letâ€™s look at Wells Fargo & Company (WFC), the Western USA banking Giant, from a Technical POV. The overall indications, after Mondayâ€™s (July 13, 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: Charter creditor Wells Fargo seeks sealed objection http://www.reuters.com/article/marketsNews/idINN1321907920090713?rpc=44
Mondayâ€™s Market Action Close
24.80 + 1.93
There is a Bullish Harami on July 9 and two Gaps open down between Jun 17 and July 2, 2009 at 24.30/23.89 and a Gap open up on Apr 9, 2009 at 15.17/17.42, the near term resistance is 25.71, support at 23.90, and the 50 day (EMA) exponential moving average is 23.23. This is Wells Fargo & Company (WFC): Wells Fargo & Company, through its subsidiaries, operates as a financial services company in the United States. It operates in three segments: Community Banking, Wholesale Banking, and Wells Fargo Financial. Community Banking segment offers deposit products, including checking accounts, savings deposits, market rate accounts, retirement accounts, time deposits, and debit cards; and loan products comprising lines of credit, equity lines and loans, equipment and transportation loans, education loans, residential mortgage loans, and credit cards. This segment also provides receivables and inventory financing, equipment leases, real estate financing, small business financing, venture capital financing, cash management, payroll services, retirement plans, health savings accounts, merchant payment processing, and securities brokerage. Wholesale Banking segment provides a range of commercial, corporate, and real estate banking products and services, including commercial loans and lines of credit, letters of credit, asset-based lending, equipment leasing, mezzanine financing, high-yield debt, international trade facilities, foreign exchange services, treasury management, investment management, institutional fixed income sales, interest rate, commodity and equity risk management, online products, insurance, investment banking, and mortgage brokerage services. Wells Fargo Financial segment comprises consumer finance operations that make direct consumer and real estate loans to individuals and purchase sales finance contracts from retail merchants; and auto finance operations, which purchase sales finance contracts directly from auto dealers and make loans secured by autos. This segment also provides credit cards and lease, and other commercial financing services. As of December 31, 2007, the company operated 5,964 branches and 6,900 ATMs. Wells Fargo & Company was founded in 1852 and is headquartered in San Francisco, California. 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 5.1% between 2008 and 2013. Wells Fargo & Company (HQ) Chairman Richard M. Kovacevich 420 Montgomery Street San Francisco, CA 94104 United States Phone: 866-249-3302 Fax: 651-450-4033 http://www.wellsfargo.com
Wells Fargo Subsidiaries Wachovia Corporation
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