Mr. Sensitive

May 31, 2013

FSX Friday Update

Filed under: Uncategorized — lbej @ 16:53

No Fed news = no market move.  ‘Taper’ talk accelerating into the Friday close=Dow down 200 points.  Any questions?

The Family Stock Index outperformed the broader market despite joining in Friday’s selloff into the close.  The FSX held on to a weekly gain until the final ten minutes of trading only to close down 0.5% to 15,604.  Breadth was fairly tight, with decliners edging advancers 15 to 10.  The rally’s momentum has clearly stalled, but this hardly classifies as a reversal of the bullish trend—the FSX is just 3.2% below its all-time intraday high set last week.  We could easily break the 50-day SMA (15,387) without causing me any concern; the 15,000 level is more significant, as it represents both the 100-day moving average and a key psychological level.  More broadly, the bull trend remains intact so long as we stay above the 200-day SMA, and that’s still 1,600 points below the current level.  So there’s nothing to worry about—yet.  That being said, if we get a blowout jobs report next week and the 10-year Treasury yield pushes toward 2.5%, we could easily test that 15K level in the next two weeks.

Advancers

  • Lee (TGI) +3.5%.  I can relate to Ben Bernanke; what secondary-market Treasury and MBS purchases are to him, Effexor is to me.  If $20 billion a month isn’t enough, double it; if that’s still not enough, double it again.  I don’t think I’ll have to go as high as 85 billion, but when the alternative is deep depression—economic or otherwise—you can’t afford to be stingy with the stimulus.
  • Ruby (RJET +2.8%.) and Zondro (ZQK +1.4%).  Ruby and Zondro are locked in a vicious battle for the #1 ranking among FSX performers this year, with RJET leading ZQK +88.9% to +85.2%.  Zondro took the lead midweek, but Ruby caught him yet again, none of which should be surprising in light of how much the two combatants have in common.  Think about it: both are mammals, both live in states ending in ‘Carolina,’ both prefer to sleep at night rather than during the day—it’s uncanny, really.  I’m pulling for Ruby in this titanic struggle, even though everyone knows Reagan’s going to win in the end.
  • Charlotte (ICE) +2.1%.  The big news this week is that Charlotte’s going back to school, evidently to become a Plant Master.  The market sniffed this one out months ago—ICE was up 35% YTD prior to this week’s announcement—so the fact that investors didn’t sell the news after buying the rumor so aggressively is a strong endorsement of her decision.  Here’s what investors are buying:

atom1

I’m sold.

  • Justin (SCI) +1%.  Justin shelled out $1.1 billion this week to buy rival funeral services firm Stewart Enterprises as he drives consolidation in the death industry (that’s the Street’s take—I swear I didn’t make it up).  I’m not sure how he decided how much he should pay; I tend to think Death+Death=Death.  If Justin can get to Death3, well, then he’ll have something.

death3

Something bad.

Decliners

  • Brinkley (BCO) -1.5%.  Speaking of death, BCO has been dead money in 2013, down 5% while the S&P 500 has climbed 14%.  Not only that, but BCO recently formed a ‘death cross’ chart pattern, with the 200-day moving average crossing over the 50-day—a notoriously bearish technical indicator.  How can Brinky turn this around?  An improved approach to investor relations would be a good start—growling doesn’t make the best first impression.
  • Ed Winston (ED) -2.7%.  Neither does sharp, sudden barking.
  • Reagan (REGN) -3.4%.  This may not come as a surprise, but Reagan didn’t win the tug-of-war at Field Day today.  As slight as she is, Brinky might have made a stronger showing that Reagan could.
  • Mario the Elder (MGEE) -4.2%.  Has Grandpa found time to work on his delts and his lats while he’s been house-sitting for Dustin and Lisa in Blacksburg?  Investors are clearly worried.  I don’t know precisely when Brinky will hit the beach this summer, but I know he’ll hit hard.  Also, the growling can be disorienting when you’re not expecting it.
Name Ticker 5/31/2013 Change
Brinkley BCO $26.83 -0.40
Charlotte ICE $171.21 +3.55
Dustin DST $68.18 -0.01
Ghost Marisa MOLXA $24.56 -0.18
Icarus FAST $52.18 +0.27
Jenny JNY $14.57 -0.14
Jodi Ann JOY $54.08 -1.34
Justin SCI $17.98 +0.16
Katie CATY $20.29 -0.08
Lee TGI $77.65 +2.64
Lisa LNCE $25.92 -0.51
Lucas LEI $1.34 +0.02
Lulu LULU $77.81 -1.08
Marcus MCS $12.85 -0.38
Mario T.E. MGEE $53.37 -2.33
Mario T.Y. MAR $42.01 -0.76
Namilita NL $11.68 -0.03
Nicole E. NICE $36.90 +0.33
Nicole M. COLM $60.22 +0.97
Reagan REGN $241.88 -8.43
Ruby RJET $10.73 +0.29
Wilson WILC $6.83 -0.12
Winston ED $57.07 -1.59
Zero ZAGG $5.05 +0.03
Zondro ZQK $7.87 +0.11

 

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1 Comment »

  1. That comic is perfect. My path is even clearer now, thank you.

    Comment by Charlotte — June 3, 2013 @ 12:39 | Reply


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