Thursday, April 24, 2014

stock updates

Here are daily bar charts of the five stock market favorites on which I have frequently commented. With the exception of Twitter (TWTR) they have all reacted to their 200 day moving averages (red lines) and have rebounded. This by itself suggests that the recent drop was just a reaction in an ongoing bull market.

Apple (APPL) has traded as high as 570 today and so far has held onto the gains it made in response to yesterday afternoon's earnings announcement. Alone among these five stocks AAPL has moved above its 50 day moving average (green line). I think AAPL is headed for 600-610. This still would put it 100 points below its all time high at 705 which I think will remain its all time high for some years to come.

Google put in its biggest reaction of the past two years but held above its 200 day moving average as well as above the gap made on last October's earnings news. The question now is whether GOOG has enough gas left in its tank to rally back to the 50 day moving average. I think it does but if it rallies and cannot move back above its 50 day average I think substantially lower prices will follow over the next 6 months.

Facebook looks pretty solid to me. It held above its 200 day moving average and at chart support (horizontal green line) and is now trading right below its 50 day moving average. I think FB will move back above this moving average. I am sticking with my upside target of 90 for FB. 

Twitter has the most bearish looking chart among these five. TWTR found support just above 39 where I thought it would and is now rallying. The biggest rally on the way down has been 11 points and that big a rally from 40 would put TWTR right at its declining 50 day average. So I am looking for a rally to 51 or so and then a move down below 40 in TWTR.

Visa put in a reaction about twice as big as the biggest of the past two years and broke a little below its 200 day moving average. It did hold support (green horizontal line) and has rallied back to a level just below its 50 day moving average. I think V will rally further to 250 or so but that may well be it for its current bull market run.

The general market is still in good shape with the Dow, the S&P, and the NYSE advance-decline line all holding above their 50 day moving averages. Until at least two of these indicators drop back below the 50 day average I will expect the market to move still higher. Upside target for the S&P is 1960.

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