some global glitches but for uranium demand and and over the next 18 months nothing has changed....shortages in supply continue to increase..... to understand why...you have to understand the markets and the global economy
A sleepy and abbreviated week wrapped up in relatively dramatic fashion, as the major market averages recoiled lower on Friday's poorly received nonfarm payrolls report. When all was tallied up, the Dow was off 0.8% for the week. Todd Salamone does "remain bullish," however, thanks to technical support on major indexes and -- perhaps more importantly -- a backdrop of significant skepticism, especially as earnings season gets ready to begin. Speaking of earnings season, Rocky White looks at how Alcoa (AA) may set the stage for the overall market and reviews how stocks have collectively fared on their earnings reporting dates. Finally, we look at this week's economic and earnings events and review a few sectors of note.
Notes from the Trading Desk: Dissecting the Technicals Before Earnings Begin By Todd Salamone, Senior VP of Research
"...major equity benchmarks come into the week near areas of resistance. For example, after the SPX pulled back to the 1,315 area on Thursday -- a 50% retracement of the June high and low -- it rallied to 1,362.16, which is just below the 2011 high, its peak earlier this month, and the index's 80-day moving average.... the S&P 400 MidCap Index (MID - 941.64) comes into the week trading just below 950 -- a support level in April which acted as resistance in May. Meanwhile, the Russell 2000 Index (RUT - 798.49) enters the week just below the round-number 800 century mark, which is where a trendline connecting lower highs in March and May is currently sitting... The sentiment backdrop remains one in which these benchmarks can power through their respective resistance levels"
- Monday Morning Outlook, June 30, 2012
"The upcoming earnings season isn't expected to be great."
- The Wall Street Journal, July 3, 2012 After a Friday setback related to a lower-than-expected employment number, little has changed relative to last week. The S&P 500 Index (SPX – 1,354.68) comes into the week below resistance at 1,362.16 -- near its 2011 high, its April low, and a 61.8% Fibonacci retracement of the April 2012 high and last month's low.
Situated just below the 1,362 area is the 80-day moving average at 1,358, which capped a mid-June rally. The SPX moved through these resistance areas early last week, but failed to close the week above these levels. Should a pullback from resistance continue, the 1,333 area -- site of the March 2009 "double low" -- could act as support.
Meanwhile, the S&P 400 Midcap Index (MID – 947.27) is still slightly below resistance in the 950 area. The Nasdaq Composite (COMP – 2937.33) made a run at the 3,000 millennium level on Thursday, but sold off after getting within 13 points of this round number that acted as short-term resistance and support in March and April, respectively. The COMP's peak last week in the 2,980 area is roughly a 61.8% Fibonacci retracement of the index's March high and June low. One plus last week was the Russell 2000 Index (RUT) moving above the round-number 800 level and taking out a trendline connecting lower highs in March and April.
Most sentiment indicators continue to indicate that there is sideline money available to push the major benchmarks through resistance, most notably from the underweight hedge fund group. Moreover, last week we observed that SPX component short interest was back to levels that preceded a 25% rally in the SPX from October 2011 into April. We also noted a couple of weeks ago that sentiment among equity options players had hit an extreme in pessimism consistent with major bottoms, as surveys suggested a slow move into the bullish camp among retail players and advisers.
One sentiment indicator that showed a notable increase in optimism this past week (relative to the prior week) was the National Association of Active Investment Managers (NAAIM) survey, which saw its reading jump from a neutral 44.8 to a more bullish 63.3, above the 2012 average of 57.4. Readings in the 75-80 area have preceded major short-term pullbacks going back to May 2010.
Next week is the official beginning of earnings season, with companies such as Alcoa (AA), JPMorgan Chase (JPM) and Wells Fargo (WFC) set to report. For the second quarter, estimates for S&P 500 companies are for growth of 8%, down from 10% at the beginning of the year. The fact that estimates are lower is a positive for bulls, as a lower bar can create more positive surprises. That said, the bar has not been lowered as much as the first quarter, when 6% percent growth was projected in late 2011 but only 2% growth was expected by the time earnings season began.
While we remain bullish, there are overloved, underperforming stocks that have rallied into resistance levels, most notably in the coal and financial sectors. If you are looking to hedge your long exposure, you can look to these groups for short positions or put option plays. continue reading
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all this is related to the demand for power generation and nuclear is the cheapest form of power..and new nUwclar power plants are the safest and environmentally friendly....the greens have as usual GOT IT WRONG...SO VOTE THEM OUT.......
LOOK FOR THE LOW... the big holders in the top 20 have the bulk of the stock and want it all......
wait and be rewarded.......
PDN Price at posting:
$1.27 Sentiment: Buy Disclosure: Held
(20min delay)