Johnson & Johnson (JNJ)

Johnson & Johnson engages in the research & development, manufacture and sale of healthcare products worldwide. Price action is currently forming a seemingly bull flag pattern which should see a price target of approx $68 towards prior 52-week highs. A price target is derived by projecting the height of the Flag Pole formation from the base of the Bull Flag formation. Stop-loss and failure of the formation upon breakdown of current OBV support.

Merck & Co. Inc. (MRK)

Manufacturer of pharmaceuticals, Merck, has completed the corrective part of an Elliot wave cycle which saw stock price decline 52% in a 3-month period with wave 5 marking a 52-week low. Coinciding with the 50-day moving average, impulse wave A has found resistance at the 23.6% Fibonacci extension level; a sell signal indicated by a crossover of overbought stochastics may see the beginning of a corrective wave B before price action resumes an uptrend as part of wave C. Earnings announcement expected 21 April 2008.

General Motors Corp. (GM)

Founded in 1908, based in Detroit, Michigan with 266,000 full-time employees; automotive manufacturer General Motors has seemgly formed Double-Bottom pattern over a 21-month period. Long position towards the 50-day moving average for an 18% gain; stop-loss on close below $18.

Altria Group Inc. (MO)

Founded in 1919, based in New York; Altria primarily enages in the manufacture and distribution of cigarettes and tobacco worldwide. During the 5 months ending 2008, stock price rallied 25% where price action is currently consolidating into a downtrend. An entrance into a short position with a stop on breakout of the RSI downtrend may serve as a low-risk trade. Tobacco producer Philip Morris is being spun off by Altria and is joining the S&P 100 index.

International Business Machines Corp. (IBM)

Update on previous IBM analysis:

http://stevepuri.blogspot.com/2008/03/international-business-machines-corp.html

S&P500 38.2% Fibonacci

The S&P500 weekly is approaching the 38.2% Fibonacci retracement level of the entire 2003-2008 bull market. Typically, this area may serve as support and commencement of a trend-reversal towards the 23.6% Fibonacci retracement level or the underside of the broken trendline.

International Business Machines Corp. (IBM)

Between July 2006 and October 2007, IBM's stock price gained 66% in value; a sell-off during November 2007 saw price action break the trendline of the rally. Since then, price action has remained beneath the underside of the broken trendline where support has become resistance. An entry into a short position with a stop-loss on close above previous highs at $117.50 may serve as a low-risk trade.

iShares MSCI Brazil Index (EWZ)

Between August 2007 and January 2008, the iShares MSCI Brazil Index rallied 80% within a 5-month period. Since the sell-off in early Janaury 2008, price action has rebounded but has remained beneath the underside of the broken trendline; forming a triple-top formation with resistance at $85. An entry into a short position with a stop-loss on close above $85 may serve as a low-risk trade.

Wal-Mart Stores Inc. (WMT)

Operater of retail stores in various formats worldwide, Wal-Mart has remained in a trading channel ranging from approx $42 to $51.50 over the last 28-month period. Price action is now approaching the upper band of this trading range providing an entry into a short position based on the assumption of the continued channel; stop-loss close above $51.50. Tuesday 19th; Wal-Mart is expected to report fourth-quarter earnings of $1.02 a share.

Cablevision Systems Corp. (CVC)

Founded in 1985, Cablevision Systems operates as a media, entertainment and telecommunications company in the United States. Having declined approx 90% over the last 7 month period, price action has now rallied towards the 38.2% Fibonacci extension level projected from the 7 month downtrend low. This level, at approx $28, has previously served as both support and resistance. With RSI and stochastics signalling overbought conditions, an entry into a short position with a stop-loss on close above $28 may serve as low-risk trade.

Dow 30 Short Ideas - AA, CAT, DIS, MCD

FTSE 100, 50% Fibonacci Extension

The 50% Fibonacci extension level projected between the year low and October 2007 highs is currently serving as resistance on the FTSE 100. The monthly graph illustrates that both stochastics and RSI are currently overbought signalling a likely pullback. Long above 6034 otherwise short.

Dow Jones, 9-month RSI

The “Credit-Crunch” sell-off saw the Dow decline over 20% from all-time-highs within a 4-month period; technically, trading in recession territory. Since then, price action has rapidly climbed 1000 points from the lows in just 6 trading days closing near the 12,500 mark (Dead cat bounce?: http://en.wikipedia.org/wiki/Dead_cat_bounce). 12,500 has previously served as both support and resistance and may define the bull vs bear case on the Dow; i.e. enter long above 12,500 otherwise remain short. As price action hit successive records between May 2007 and October 2007, RSI diverged and remains in a declining bias signalling a bearish long-term undertone. A possible favourable 50bps rate cut by the Fed on 30th January 2008 may set the scene for a rally on Wall Street; however, upside may be limited towards the underside of the declining RSI trendline.

Fibonacci Retracements & Fans

Both the Dow and FTSE are at present discovering support at the 38.2% Fibonacci retracement levels projected from the commencement of the 5-year bull-market.

Wall Street RSI

Since the beginning of the the 2003 bull market, each time RSI(14) traded at approximately 38 during a weekly timeframe, a buy signal was generated on Wall Street. However, the previous two buy signals occured at approximately a reading of 42 which is where price action is currrenly trading.

China Mobile Ltd. (CHL) - Symmetrical Triangle

Brazil iShares (EWZ) - Diamond Top ?

Gold Fields Ltd. (GFI)

Honeywell International Inc. (HON) - Double-Top ?

Dow Jones 06/12/2007