Despite an acceleration of the uptrend the market is not showing any signs of wanting to pull-in as the indices drift to new highs once again. Investors are taking China’s rate hike in stride, perhaps because most other central banks are pursuing inflation rather than trying to curtail it. Apple Inc. (AAPL) has continued to push to new highs to lead the market after another price target upgrade.
Gold got a boost overnight and trending higher intrday. JP Morgan Chase & Co. (JPM) announced today that it would start accepting physical gold as collateral against securities lending and repurchase obligations (repos), reinforcing gold’s role as an alternative currency. Silver continues to outperform gold, and took out a significant resistance level today. The second place metal now has nothing in its way to get back to highs.
Hot Apparel
Two tight fitting clothing companies, Lululemon Athletica inc. (LULU) and Under Armour, Inc. (UA) are extending recent breakouts, up 2.5% and 1.75% today respectively. These apparel makers carry lofty valuations for the industry, both coming in with PEG rations near 1.70. But so far, momentum players have continued to get paid buying breakouts in these high-fliers.
Intel Moves to Reassure Investors Over Chip Snafu
Intel Corp (INTC) has become a slow moving value stock, but that doesn’t mean technical traders can’t get in on the action when a compelling pattern forms. INTC has formed an almost year-long reverse head and shoulder pattern with a neckline at $22 and measured move to the $26-27 area. In addition to having a compelling technical pattern, Intel carries a very attractive valuation and pays a healthy 3.3% dividend.
Today, the stock was weak early but has began to recover. The weakness is being attributed to problems experienced with the 6 Series chipset, but the company has moved to quell fears by revealing manufacturing has begun on a new version of the chip that will be shipping shortly.
Wynn Knocking on Breakout’s Door
As noted this morning, Wynn Resorts International (WYNN) has become an even more clear-cut leader in the casino group after Las Vegas Sands Corp (LVS) missed an opportunity to break out of its long term consolidation with a weak earnings report. Wynn was up more than 4% in early trading this morning before pulling off somewhat, but has held the morning gap up. The stock is still knocking on the door of new highs, and looks like it will break out ahead of its own earnings report in a couple weeks.
*DISCLOSURE: Scott is long AAPL, GLD, INTC. John is long WYNN, AAPL, JPM.
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