Opportunities
Today’s commentary is being written by Brice Wightman.
Personal incomes rose 0.5% in
July, but that may have been the only thing up
today, as the Dow dropped 171 points and closed below 10,000 for the first time
since April 9. The Nasdaq followed suit, falling just over 51 points. Not even
Michael Jackson’s ringing of the opening bell on the Nasdaq helped this market.
In other news, industry figures show investors pulled $1.23 billion out of
stock mutual funds in July, broker Charles Schwab is laying off over 2000
employees because of sinking trading volume, the dollar sank 1/2 percent in part
because of falling stock prices, stalwart insurer Lloyd’s of London is
projecting losses of $2.9 billion, and the Nikkei is at the lowest level since
1984.
Given this scenario, are there any stocks to look at?
Well, maybe a few.
Applebee’s
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APPB |
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PowerRating) posted a nice gain on a strong same-store sales report. The
company said its new menu, introduced in Q2, helped out. Today’s action has the
stock rallying out of a cup and handle, or an inverted head and shoulders
pattern, depending on which way you look at it. Applebee’s has a EPS rank of 64
and a RS of 90.
Action Performance
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ACTN |
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PowerRating) rallied out of a 1 1/2 month base earlier this
week, and closed down slightly today. The stock of the Phoenix-based maker of
motorsports products also looks good on the weekly chart (not pictured); the
stock is breaking out nicely from a symmetrical triangle. ACTN has an EPS rank
of 88 and an RS of 99.
Frontier Oil
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FTO |
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PowerRating) has rallied to complete a saucer pattern. The oil refiner
has an EPS rank of 90 and an RS of 97, but today’s bar looks suspect. Look for
the start of a possible cup and handle here.
United Health
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UNH |
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PowerRating) is consolidating near its highs in a flag pattern.
Today’s close indicates a pullback here, but the stock has demonstrated very
good relative strength, trading just below its 52-week highs. UNH has an EPS
ranking of 73 and an RS of 88.
Greg will be back tomorrow.