Raises stagflation fears and stock Ideas
Stagflation is now the word heard on the floors of Wall Street that is putting fears in investors mind. This particular economic condition is generally characterized by slow growth, rapidly rising consumer prices, and relatively high unemployment, which for now is not happening in US. Stagflation occurs when the economy isn't growing but on the other hand there is a high unemployment (stagnation) while prices rise (inflation). This happened to a great extent during the 1970s, when world oil prices rose dramatically, fuelling sharp inflation in developed countries. From my point of view, the current high prices of commodities may put this economic condition in action. In addition, early this morning, the government reported that consumer prices in country rose more than forecast last month, indicating that the slowing American economy isn't alleviating inflation pressures. The 0.4 percent rise in consumer prices was led by increases in the prices of food, energy and health care. Now, the FED has a big problem in their hands, slow grow with high inflation. I don't know but this is not good, as I said before, we may be living a problem of stagflation. Keep your eyes well open, and play on the defensive side.
Chart courtesy of stockchartsLooking at the chart of CAL, it is pushing up against the downtrend line and it's 200 day moving average. I'm not sure if it will reverse here and retest the recent lows, but it seems like it will at least back off and retrace to the 50- day moving average. MACD fast line is approaching to cross below D line.
Chart courtesy of stockchartsWhat a day for RIMM. Stock completely changed my point of view and closed the day well positioned to break one important area. So, tomorrow keep an eye on RIMM for apossible breakout over $98.15 on a close basis.
ADCT is at critical support near $13.50. Stock could go either way depending on how it deals with a major trendline.
CSCO - I believe this move will continue toward the $22.30 or even $21.77 before the stock moves higher again. The major resistance is around $24. The break of the descending line with heavy volume should be the next buy point on CSCO.
Disclaimer : Trading stocks involves risk, this information should not be viewed as trading recommendations. The charts provided here are not meant for investment purposes and only serve as technical examples.
That's All. Have a nice evening !!!
AC
