Wednesday, December 10, 2014
Today I am going to comment on the individual stocks I follow in the daily guesstimate. I last did this is this post.
I have put up the daily bar charts in roughly the order of what I see as the technical strength they show - strongest at the top and weakest at the bottom.
The top two charts are Apple and Visa. Both are in strong bull market trends - above both the 50 day (green) and 200 day (red) moving averages. I think AAPL will reach at least 126 and more probably 140. My immediate target for V is 270 but I think that 300 will be reached as well.
Next strongest stock is Facebook. It is right on its 50 day moving average and still above its 200 day average. My minimum target for FB is 90 but I think that 105 is at least as likely to be reached.
In the middle of the pack is Ali-Babba. This stock has not been trading long enough to have a 200 day moving average. But BABA has dropped to the midpoint of its brief historical range and has touched its rising 50 day average. I think 135 is a good target for BABA and if a frenzy develops 155 won't be far behind.
The two weakest stocks in the group are Google and Twitter. Both are below their 50 and their 200 day moving averages and in each case the 200 day average is in a declining trend. I am inclined to give GOOGL the benefit of the doubt as long as it can hold 520, but if it cannot do this then a bear market will be underway in this stock. Twitter is the weakest stock in the group and I think it is headed for 20.
I still think the US stock market averages have quite a bit further to go on the upside before any drop comparable in size to the September-October decline begins. My upside target for the S&P is 2184 while my target for the Dow is 18,900.