The Ishares MSCI USA Quality Factor ETF QUAL looks like an excellent setup with a pocket pivot signal and the Effective Volume showing large players volume rising.
The investment seeks to track the investment results of the MSCI USA Sector Neutral Quality Index composed of U.S. large- and mid-capitalization stocks with quality characteristics as identified through certain fundamental metrics.
The top 10 holdings in the Ishares MSCI USA Quality Factor ETF as of July 13, 2017, are:
Altria Group Inc = 7.29%
Johnson & Johnson = 5.03%
Microsoft Corp = 3.76%
Apple Inc = 3.48%
3M Co = 3.29%
Mastercard Inc = 2.53%
Starbucks Corp = 2.48%
Charles Schwab Corp = 2.36%
International Business Machines Corp = 2.36%
Exxon Mobil Corp = 2.28%
Ishares MSCI USA Quality Factor ETF Chart
QUAL has a good setup pattern. Large players volume is surging higher and the Twiggs Money Flow shows that QUAL is under accumulation.
Prices have been consolidating lately and the volatility has been reduced forming a momentum squeeze.
There is a resistance zone just above the current price starting at 75.32. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 74.83, a stop order could be placed below this zone.
The Analog Devices stock chart shows that large players are accumulating shares as the price consolidates. Institutional ownership has increased by 13.64% over the last 3 months.
Back on June 19, 2017, Raymond James re-initiated coverage of Analog Devices with a “market perform” rating, citing some complications related to its March merger with Linear Technologies. Raymond James thinks the combination of Analog Devices with Linear Tech will result in an analog chip “powerhouse” down the road, but upcoming headwinds related to the company’s recent loss of Apple Inc. business poses a problem managing upward estimate revisions.
Analog Devices Stock
A bullish Pocket Pivot signal occurred on Friday, June 23, 2017 (blue dot on chart above). There is a huge positive divergence between the price and the Effective Volume which shows large players accumulating the stock. Do large players know something we don’t? The Twiggs Money Flow is still negative for Analog Devices stock and so you need to be cautions about taking an entry. There is a resistance zone just above the current price starting at 82.63. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 81.07, a stop order could be placed below this zone.
Monopolies are sucking up everything in their vortex as the concentration of wealth continues. Examples of monopolies are Amazon, Google, Apple, and Facebook.
Amazon is destroying retail and it’s expanding into the food industry now. Amazon brings in automation technologies which will keep adding pressure on other low wage sectors. When Amazon announced the buyout of Whole Foods, we saw Amazon’s stock go up but everyone else in the grocery industry went down.
Amazon will layoff thousands of employees of Whole Foods and replace them with self-serve electronic cashiers. The move to layoff workers and automate has caused bubbles in higher education debt, automobile loans, consumer debt, and a new round of mortgage debt. Meanwhile, state and local governments remained strapped, and the ordinary services of everyday life are rapidly diminishing.
The trend of a few companies dominating everything at the expense of all others continues and it’s the driving force behind income inequality in the U.S.
As monopolies like Amazon continue to eliminate smaller businesses, wealth becomes more concentrated as it flows to corporate officers and shareholders.
The market cap of tech giants is already greater than the GDP of large U.S. cities. Google is bigger than Chicago and Amazon is bigger than Washington DC.
Facebook, Amazon, Apple, Microsoft and Google parent company Alphabet are the top five contributors to the S&P’s 500 gains this year. In other words, these monopolies are sucking investing dollars away from other companies thus the S&P 500 keeps rising even though the economy is slowing. In this scenario, the S&P 500 is more a gauge of the growing concentration of wealth than it is of the economy.
The Nasdaq plunged on Friday for its biggest sell-off, relative to the Dow Jones Industrial Average, since 2008. All the big names like Apple, Alphabet Inc., Microsoft Corp., Amazon.com Inc. and Facebook saw billions of dollars shaved off their market-cap in the blink of an eye.
Overbought Oversold Indicator Explains Nasdaq Big Sell Off
The smoothed RSI indicator shows just how overbought the Nasdaq has been for months now.
Everybody is wondering if Friday marks the beginning of a turn down on the Nasdaq. Looking at the chart, it’s too early to tell but everybody is going to be watching the Nasdaq on Monday.
The key level to watch is Friday’s low and bounce off the uptrend line at around 5657.
In addition to watching an overbought oversold indicator like the RSI, you need to watch out for breakout headfakes as the 10 minute chart of QQQ below shows.
I’m seeing a pattern of algos selling after a breakout which creates a headfake.
Small cap stocks are the place to be in a Trump Administration. Trump’s economic policies will negatively impact large multinational corporations like Apple. Small cap stocks are all about domestic companies.
Small cap stocks generate most of their profits inside the US, exactly where Trump’s economic agenda is targeting.
Since Election Day, small cap stocks on the Russell 2000 Index have surged 12.3%, far better than the 3.05% gain for the large-company S&P 500 stock index, and the 3.6% gain for the Nasdaq.
A massive amount of money is moving into small caps. The Russell 2000 has closed up for 14 days straight since Trump won the election.