Trend outlook 2018

YTD NASDAQ

For the first time since almost 30 years – the entire world is seeing +positive grown for 12 months!

Of the top ten largest corporations in the world in 2009, only one was a technology company – Microsoft.  Today, seven of the ten largest companies worldwide are technology companies including Apple, Google/Alphabet, Microsoft, Facebook, Amazon, Alibaba and Tencent.  The shift to a technology dominated economy provides a boost to earnings growth rates.

Over a fifth of the S&P 500 is represented by the technology sector.  Consensus revenue growth for the technology sector in 2018 is 9.4% which should drive 35% earnings growth.  In the past month, the revenue growth forecast was revised up from 8.7% to the current 9.4%.

The earnings per share for the MSCI AC World Index (ACWI) is above $30.  In the U.S., the S&P 500 consensus earnings estimate is expected to advance by about 11% year-over-year on revenue growth of about 5% off of record levels reached in 2017.

If the P/E remains constant as it has for the past two years, the S&P 500 should be up in-line with earnings or about 11%.

Source : Delta market sentiment

Daily Market Analysis

Though the market has had around 6 heavy selling in the last 2 months. It is hitting it’s highs again. Caution is required during this period.

let’s look at the top 50 stocks in the USA

at number 33 is Whiting Petroleum (WLL)

First let’s look at its weekly chart, and then daily

WLL

as you can see in the weekly chart there is a strong resistance formed on april 1st 2011 – 74 -75 USD.

and also the red line – 50 week MA – consolidating neatly (we want to see a good pull back in light volume)

WLL DAILY

The float (at the middle top of the chart) is very nice 118 million (for a stock with EPS rating of 97 – performing better than 97 % of all the stocks) this is woderful float – very easy to go up.  with an average daily vol of 2.6 million

Whiting petroleum corp ranks number within the oil&gas expl&prod group of stock (102 stocks) for overall rating of 99 (top 1% of all stocks in the market)

IBD (Investors Business Daily) research shows that 37% of a stock’s price movement is tied directly to the performance of its industry group. An additional 12% is due to the strength of its overall sector. In other words, stocks aren’t islands.

Now the Industry group for WLL is oil&gas exploration & Production – it is ranked number 5 in 197 industry groups.
and over all as a group the growth is 37% YTD.

WLL has a Relative strength rating of 86, which is good but we want to see more high volume accumulation.

So keep an eye open on this stock

Happy Trading