Any Bread to be Made Here?

Head and Shoulder Patterns can be wonderful at times.

We noticed that Panera Bread, symbol $PNRA broke out of a Bullish Head & Shoulder continuation Pattern.

Here is a review of this pattern H&S Continuation

PNRA 7 29 15

 

What adds some juice to this idea, is looking at it when plotted against the S&P 500.

PNRA vs SPX 7 29 15

 

In this case, another Bullish Head & Shoulder but this one is a bottom, not a continuation.

Both are very bullish, looking for 235 based on the measured move if we did our math right.

Thanks for stopping in to our place!

cjsig

Time to Put it in Reverse?

No doubt recent stock market internals have continued to deteriorate. The NYSE Advance / Decline line has been a mess to say the least. New 52 week lows have been increasing and new highs have all but gone away.

So any sign of relief? Here is a chart that shows the price and relative price of the the $TLT, an ETF that represents the 20 year US Government Bond vs. the S&P 500.

TLT 7 27 15

 

If we are to get a bounce for equities, looks like this would be a logical place from a chart perspective!

These resistance lines don’t hold, expect more pain if you are long Equities.

cjsig

 

Can the Whirlpool Eat the Brick?

Whirlpool, symbol (WHR) markets Whirlpool, KitchenAid, ConsulMaytagBrastemp, AmanaBauknecht, Jenn-Air, Indesit and other major brand names in more than 170 countries.

After making an all-time high in February of this year, it has struggled of late, but has appeared to to have found some support on both a Daily and Weekly Chart!

Here ya go:

WHR 7 22 15

At the same time, it finds itself up against a brick of resistance, especially on the weekly longer term chart. Now good news for the bulls could be a possible bullish engulfing pattern on the weekly chart.

If that pattern can complete by Friday’s close and an eventual breakout of resistance takes place, that would get us excited on the long side.

Stay tuned brothers and sisters!

cjsig

logo Deux

Truth or Consequences?

Hope you all had nice weekend!

We took off some of our GOPRO $GPRO off Friday, on the grounds it moved into the 200 day moving average, which also coincided with some resistance on a Logarithmic chart.

GPRO Log 7 19 15

 

We do prefer log charts. Now some folks prefer to watch Arithmetic charts which can work better in shorter time frames.

Here is the same chart in ARITHMETIC!

GPRO ARITH 7 19 15

 

Hmmm…breakout here….

Lets look at this vs. the  S&P 500

GPRO RS 7 19 15

 

Pure RS breakout here, we will look to add back if our Log chart can join these 2 other charts. Earnings expected after the bell on the 21st.

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cjsig

Everyday we write the book!

While we sure don’t get them all right, we have had our fair share of ideas that have played out better than we thought!

Thank you to Kimberly Swartz for taking the time to create this with me. This was a fun project and led us to discussing Perspective.

The average annual return of the S&P500 over the past 100 years has only returned 7% approximately. According to published resources 85% of mutual funds portfolio managers do NOT beat the S&P 500. The average professional experienced trader (non hedge fund) typically earns less than 7% for their clients per year.

The Book

 

We hope you all have been able to generate a few ideas from us, and had a rewarding start to the year!

The core to the strategy is following where the relative strength resides, we build our models around this.

Hope your having a unreal summer! Don’t fight the Fed, don’t fight the tape and don’t screw the the pooch!

cjsig

 

Does it PAY to take a Pay Cut for EBAY?

So what’s in store for eBAY, now that they have spun off their 2002 acquisition of PayPal?

You can make your own judgements, but here is what the charts are telling us!

EBAY 7 16 15

We are working on both relative and absolute breakouts on longer term weekly charts. Further, Point & Figure work suggests a first target of ~ 75.

Check this out, don’t CHECKOUT!

cjsig

 

Current Spread Trades

Thinking it’s a great time for spread trades.

Simply, this is getting long one security and short the other. All your need is one to go up more than the other or visa-versa, as in short go down more than long.

So we haven’t done a lot of these, but we plan on adding more! Here are our current long short positions:

Long $EMCI Short $EMC

EMC 7 6 15

Long $COKE Short $KO

Coke vs KO 6 17 15 (1)

Long $HAS Short $MAT

Has vs Mat JB 1 22 15 2

Nice Numbers here!

cjsig

 

 

 

Massive Base, Launch Into Space!

18 years is a long time for all of us.

Conagra, a food company that can be found in 99% of US households, is rising out of a very long term base!

This is usually a very bullish development and we love to see this for a longer term commitment on the long side.

CAG 7 7 15

 

Not flashy, but working!

cjsig

If you’re Chicken, Here is how to grow a pair!

Here is a spread idea or call it a ratio trade, a hedged trade, whatever!

How about loving EMC Insurance and shorting EMC Corporation? Long one $EMCI and Short the other $EMC.

EMC 7 6 15

 

We think this is a tasty PEAR!

cjsig

Roasting on some Fibonacci and Monthly Support!

$GMCR another 52 week low today!

The point & figure chart has suggested 71 for a target, and we pretty much got there today. The head & shoulder pattern is suggesting more to the downside.

While we remain bearish, might make sense to clear it off here and see if the bulls have what it takes with some long-term support here.

coffee-wink

GMCR 7 6 15

Re Short on a breakdown of 61.8% of Fibonacci and Monthly trendline support!

cjsig