Intermediate-Term Traders Report
Traders say we are in the I.O.U market. Interest rates, oil, and
uncertainties are scaring investors away from the market. Come to think of it,
non of my friends are talking about the stocks these days. They are very happy
with their real estate investment. If the average individual investors are not
actively participating in the market, who are we competing with? No wonder it is
so tough to make money.
A couple of days ago, I heard on the radio that more than 52% of the people gave
up low carb diet because it is not easy to follow. I knew it. It was only a
matter of time. People want to enjoy food. Eating has to be a pleasant
experience. Don’t torture yourself with low cab diet anymore. Let’s eat whatever
we want!
Anyway, if low carb is fading, this must be a good time to buy Krispy Kreme
Doughnut (KKD). Let’s see the weekly chart. No, I can’t buy it yet. Do I want to
short it? No, MACD histogram is improving in spite of the falling price.
How about Panera Bread (PNRA)? It operates bakery-cafe business in 35 states. As
you can see on the daily chart below, PNRA is bouncing off the support level,
and appears to be heading to the 200-day EMA. Again, eating has to be a pleasant
experience.
Now I want to review two weekly charts:
Both Diamonds Trust (DIA) and Nasdaq-100 Index Tracking Stock (QQQ)
violated the support level and finished near the week’s low. Notice, the RSI
closed at the year’s worst level. It is safe to assume that we will be seeing
more selling next week, but don’t forget FOMC meeting on Tuesday.
Economic Calendar:
| Date | Time | Release | For | Consensus |
| Aug 09 | 10:00 | Wholesale Inventories |
Jun | +0.5% |
| Aug 10 | 14:15 | FOMC Meeting | ||
| Aug 12 | 08:30 | Business Inventories | Jun | +0.4% |
| Aug 12 | 08:30 | Retail Sales | Jul | +1.0% |
| Aug 13 | 08:30 | PPI | Jul | +0.2% |
| Aug 13 | 09:45 | Michigan Sentiment | Aug | 98.00 |
Notable stock of the week:
Oil Service HOLDRs (OIH) closed just above its rising trendline, but look
at volume and RSI. Clearly, the stock is in trouble. Declining prices are met
with increasing volume, and RSI is recording lower highs. Look for a breakdown.
Best performing industries of the week: Mining, Water Utilities, Soft
Drinks.
Worst performing industries of the week: Internet Services, Consumer
Services, Retailers.
Good night and see you next week.