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Portfolio Update: What’s Wrong At Blackrock and ConAgra?

  • Written by Syndicated Publisher No Comments Comments
    May 23, 2012

    US equity markets essentially finished flat across the board on Tuesday after marking some sharp gains in the morning and then promptly selling off into the close (insert any reason for this that suits your fancy here) ending pretty much where they started the day.  From a technical perspective there was also little damage done to the major index charts on Tuesday and the majority of our proprietary trend signals remained unchanged.

    From our periodic notes over recent days and from the subscriber videos you are well aware by now that there has been  significant technical internal deterioration going on for some weeks now and many S&P500 stocks have been turning technically bearish – a fact that at this stage remains well under the radar of the mainstream media – however as the bigger stocks start to roll over the price impact will become harder to ignore – but by then it will be too late.

    On Tuesday of all the stocks in the S&P500 only 2 turned intermediate bearish (zero turned bullish again!) according to our trend analytics model – these two stocks were Blackrock (BLK) and ConAgra Foods (CAG).  Blackrock has been in a steep decline for some time and has only just triggered an intermediate term bearish trend signal indicating lower prices in the months ahead – looks like being smug isn’t a strategy that’s going to work for them anymore? – so we’ll see what happens.

    On ConAgra (CAG), I can’t really say what they’ve done wrong from a fundamental perspective but the intermediate time frame now looks negative and the stock internals have just turned bearish around the highs – usually not a good sign.  Time usually reveals all, but the charts are giving us the heads-up that things are not quite right at either of these 2 firms.

    So for today we will not be closing any instruments in the portfolio (this week we’ve closed about 15 positions for an average gain per trade of 50% or more) – but we will add 2 short positions to the beta 3.0+ portfolio – Blackrock (BLK) and ConAgra (CAG).

    You can log-in to the open portfolio positions click here where you can see how each of these new bearish trend signals in these stocks have been leveraged into the portfolio.

    *Please note that the information provided here is for information purposes only and should not be construed in anyway as advice of any sort. Please familiarize yourself our important disclaimers here before continuing.

    Images: Flickr (licence attribution)

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