Wednesday, February 25, 2015
Here are charts of the six stocks I have been following on this blog. They are displayed in the order of technical strength with the strongest a the top.
Apple and Visa are still two of this bull market's leaders. I expect AAPL to soon reach 140 but I think 160 is within reach over the next couple of months. Visa is headed for 290 or so.
Twitter turned bullish by gapping back above its 200 day moving average (red line on all the charts). I think TWTR will rally into the 66-70 range but stay below its all-time high near 75.
Google is currently trading below its 200 day moving average but above its 50 day average (green line). GOOGL shows a sequence of higher lows which suggest it is going to reestablish itself above the 550 level. If it does and then moves above its 200 day moving average (currently 559) I will turn bullish on this stock.
Alibaba is the weakest of these six stocks and is currently trading near its historical low of 84. I think this drop will continue and BABA is likely to fall below its IPO price of 68.
The broader US market averages continue to creep higher. I think the bull market which began in March of 2009, six years ago, has further to go. As I explained a couple of weeks ago my Lindsay methods are suggesting an important top in the April-May time frame. By that time I think the S&P will be trading near 2250. Regardless of whether the bull market ends then and there I do think a drop of at least 10-15% will become very likely.