#$ctsh

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

Cognizant Technology Solutions, $CTSH, comes into the week breaking resistance. It has a RSI in the bullish zone with the MACD positive. Look for continuation to participate…

Expedia, $EXPE, comes into the week rounding up from a pullback. It has a RSI in the bullish zone with the MACD positive. Look for continuation to participate…

Intercontinental Exchange, $ICE, comes into the week at resistance. It has a RSI at the midline with the MACD rising. Look for a push over resistance to participate…

Royal Bank of Canada, $RY, comes into the week breaking resistance. It has a RSI in the bullish zone with the MACD positive. Look for continuation to participate…

Thermo Fisher Scientific, $TMO, comes into the week at resistance. It has a RSI in the bullish zone with the MACD positive. Look for a push over resistance to participate…

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the November options expiration in the rearview mirror, saw equity markets showed continued jitters, with mixed messaging from the Fed and the first Government data, the September jobs report.

Elsewhere, look for Gold to continue the uptrend with some short term consolidation while Crude Oil holds lower in consolidation. The US Dollar Index continues the short term drift to the upside, toward a breakout, while US Treasuries continue in consolidation, sputtering the possible reversal higher. The Shanghai Composite looks to continue the uptrend after some digestion from the 10 year highs while Emerging Markets stall in their uptrend putting it at risk.

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

Chemed, Ticker: $CHE

Chemed, $CHE, comes into the week reversing after a quick drop from the start of October. The RSI is rising out of oversold territory with the MACD curling up towards a cross. Look for continuation to participate…..

Cognizant Technology Solutions, Ticker: $CTSH

Cognizant Technology Solutions, $CTSH, comes into the week breaking over resistance. The RSI is rising and bullish with the MACD crossed up. Look for continuation to participate…..

FedEx, Ticker: $FDX

FedEx, $FDX, comes into the week rounding up out of a bottom. The RSI is rising out of oversold territory with the MACD crossed up. Look for continuation to participate…..

Old Dominion Freight Lines, Ticker: $ODFL

Old Dominion Freight Lines, $ODFL, comes into the week at resistance. The RSI is rising in the bullish zone with the MACD crossed up and positive. Look for a push through to participate…..

Sealed Air, Ticker: $SEE

Sealed Air, $SEE, comes into the week pushing up towards resistance. It has an RSI rising through the midline with the MACD crossed up and climbing towards positive. Look for a push over resistance to participate…..

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After reviewing over 1,000 charts, I have found some good setups for the week. This week’s list contains the first five below to get you started early.  These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the October options expiration in the books, saw equity markets showing signs of a rebound from an ugly 10 week stretch.

Elsewhere look for Gold to continue in consolidation while Crude Oil continues in an uptrend. The US Dollar Index continues its short term move to the upside while US Treasuries are in position to possible reverse to the upside. The Shanghai Composite looks to continue the broad drift sideways while Emerging Markets trend lower.

$CTSH 2018-08-13 : Transcripts- CTSH Edited Transcript of CTSH earnings conference call

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Q2 2018 Cognizant Technology Solutions Corp Earnings Call

TEANECK Aug 14, 2018 (Thomson StreetEvents) — Edited Transcript of Cognizant Technology Solutions Corp earnings conference call or presentation Thursday, August 2, 2018 at 12:00:00pm GMT

T…

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers

Here are the Rest of the Top 10:

Broadcom, Ticker: $AVGO

Broadcom, $AVGO, rose from a low in February making a new high in April. Since then it pulled back in a rounded bottom fashion and Friday started back higher. The RSI is pushing up through the mid line and the MACD has just crossed up, a buy signal. Look for continuation Monday to participate in the upside.....

Cigna, Ticker: $CI

Cigna, $CI, had a quick fall from 142 at the end of April. After finding support it started higher Friday. The RSI is also starting to rise and the MACD about to cross up. Look for continuation to participate in the upside.....

Cincinnati Financial, Ticker: $CINF

Cincinnati Financial, $CINF, has had a great trend higher. It slowed in March, reconnecting with the 50 day SMA and then started higher again. Now it is consolidating under resistance. The RSI is in the bullish zone and rising and the MACD is turning back up, avoiding a cross down. Look for a break of resistance to participate to the upside.....

Cognizant Technology Solutions, Ticker: $CTSH

Cognizant Technology Solutions, $CTSH, has moved back to resistance and over the 200 day SMA with a strong move up Friday. The RSI is in the bullish zone and rising and the MACD is rising as well. Look for a break over resistance to participate to the upside.....

Fortune Brands Home & Security, Ticker: $FBHS

Fortune Brands Home & Security, $FBHS, had a sharp rise off of a low in February with the market. It topped out in April and has pulled back slightly. Friday saw it reverse back higher, signaling a bottom has been made. The RSI is moving back higher in the bullish zone and the MACD is crossing up, a buy signal. Look for continuation to participate in the upside.....

After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with Options Expiration behind and heading into the last week before the unofficial start of summer, sees equity markets treading water.

Elsewhere look for Gold to consolidate in its uptrend while Crude Oil continues higher, perhaps with a short term pause. The US Dollar Index looks to continue higher while US Treasuries consolidate broadly in their uptrend. The Shanghai Composite looks to continue to consolidate with a downward bias and Emerging Markets look to head lower.

Volatility looks to remain subdued keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts show continued short term confusion, with the SPY extending a long bull flag maybe too long, and the IWM and QQQ looking more like they could start a reversal higher. Use this information as you prepare for the coming week and trad’em well.

Steady Investor News

Spillover from the recent global market rout has challenged the tech sector, and the stronger dollar isn’t helping either. Apple stated in its Q1 fiscal 2016 earnings that dollar appreciation cost it $5B in revenues – at constant currency, its revenues would have been $80.8B versus $75.9B. Its revenue growth, though a positive +2%, could have been a much higher +8% had currency mismatches not occurred.

Still, Zacks Investment Management sees the technology sector’s longer-term growth prospects as bright. For example, Alphabet’s (Google’s) plans to provide free “Fiber” super-speed internet connections to lower-income homes in Kansas City portends opportunity. Armed with 1,000 Mbps bandwidth, that far exceeds average speeds of 12.6 Mbps, Fiber could turn out to be Google’s trump card. Additionally, its recent stock performance has been stellar, buoyed by year-over-year earnings growth of +45.3% and +5.3%, respectively, in third and fourth quarters of 2015. Additionally, Alphabet’s shares rose by more than +25% in the past year through March 2, 2016. What’s more, there are possibilities Alphabet could occupy more than 30% of the mobile advertising space.

Then, there’s Facebook which is already a dominant player in the mobile ad space and boasted a +14% increase in users in 2015 from the previous year. Facebook’s shares have increased more than +34% in the past year through March 2, 2016 on the back of strong fundamentals: its earnings growth rate for the last two quarters of 2015 were +11.2% and a whopping +122.8%, respectively, from the same quarter the previous year.

Information Technology (IT) and IT-enabled services is another industry that holds promise as business models evolve to address consumer needs through innovation. For example, many companies are beginning to provide cloud-based infrastructure to drive increased operational efficiency. With more efficient data management tools, resources can focus on developing newer and better products. This is reflected in equity performance of bellwether companies like Accenture Plc and Cognizant Technology Solutions – in 2015, they posted equity gains of more than +17%%  and +13%, respectively, besting the broader S&P 500 which is down -0.7% over the same period.

Earnings Remain Strong

Continued groundbreaking innovation often enables the tech sector to bounce back from less favorable times. The sector posted solid year-on-year earnings growth of +10.1%, +2% and +5.9%, respectively, in the first three quarters of 2015. And, even as shorter-term headwinds suppress growth, Zacks Investment Management predicts this sector will undergo positive gains in the last three quarters of this year from the previous year. As of March 2, 2016, the S&P 500 Information Tech sector performed better than the overall market in the past year – the S&P 500 Information Tech has slipped around -3.4% versus the broader S&P 500’s (price only) decline of -5.8%.

Bottom Line for Investors

While volatility is certainly affecting some areas of Tech, the overall sector’s fundamentals are not yet doomed. With struggling economies in Europe and Japan actively pursuing expansionary measures, the prospects for the U.S. technology market should brighten once the global expansion presses on. Being the lifeblood of modern global growth, the technology sector continues to grow through innovations in products and business operating strategies. Zacks Investment Management currently has a favorable outlook for this sector, with emphasis on semiconductors and computer-software services. Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.

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I am a top down technical trader.  That means I look for the trend in the broad market first and then look for stocks that are set up to move with the trend to outperform.  From this process I have been on the long side of the market since 2009.  Nothing has happened with the indexes to change the uptrend.  That means it is a rare occasion where I find a stock that I want to short.  One of those came up this weekend.

Cognizant Technologies ($CTSH) had moved higher with other consulting company names early in the year.   But then it just stalled, and moved sideways with the broad market.   That is not a problem.  But Friday the stock showed signs that it wants to head lower.

The chart above shows that rise, consolidation and now a move lower.  The move Friday took the stock under support.  That was the first reason to look at a downside trade.  The momentum indicators are also running lower.  And the Bollinger Bands® are opening to the downside.  There is some possible support at the top of the gap and the January high at 56.65.  And then on a gap fill at 55.22.  It may not look like much of a trade but that is a 4.9 to 7.4% move lower.  

The company reports earnings Monday May 4th before the open, so this could be a quick trade.  You could short the stock against a stop at 60.25.  That gives a reward to risk ratio of 4:1 or better.  But that still leaves you open to a gap up move in the stock.  A better way to trade this is either the May 1 Expiry or May 8 Expiry 59.5 Strike Puts.  If you have a view of a bad earnings report then use the longer options.  Otherwise for less than the cost of your stop loss on the stock trade, 60 cents, the May 1 Expiry Puts area defined risk way to trade it.  I bought some shortly after posting this.

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers.

Baker Hughes, Ticker: $BHI

Baker Hughes, $BHI, rolled over and had a hard fall. October 16th saw a bottom with a Hollow Red candle on huge volume and it has consolidated since. The RSI is still oversold but rising and the MACD is about to cross up as it sits very extended from the SMA's above.

Capital One Financial, Ticker: $COF

Capital One Financial, $COF, also bottomed on large volume two weeks ago. It has pushed up over the 200 day SMA and started a break of consolidation Friday to the upside. The RSI is rising and the MACD about to cross up to support more upside.

Cognizant Technology, Ticker: $CTSH

Cognizant Technology, $CTSH, fell from a consolidation at the highs and started a new consolidation. Since mid September it has been making a rounded bottom and is now pushing through the 20 day SMA to the upside. It has support for a move up from the rising RSI and MACD.

Perrigo, Ticker: $PRGO

Perrigo, $PRGO, is pressing against the top of a symmetrical triangle that started in July. The RSI is rising and bullish and the MACD crossed up to support a push through to the upside.

Constellation Brands, Ticker: $STZ

Constellation Brands, $STZ, had been consolidating under 88.25 until it dropped to visit the 200 day SMA 2 weeks ago. The rebound now sees it back at resistance with a RSI that is making a new 3 month high and a MACD that is rising to support more upward price action.

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After reviewing over 1,000 charts, I have found some good setups for the week. }These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which, heading into the last week of October sees the equity markets have nearly fully recovered from the Droptoberfest™ selloff. Elsewhere look for Gold to resume its downtrend while Crude Oil consolidates with a bias to turns lower. The US Dollar Index remains strong but digesting its recent gains while US Treasuries are biased lower. The Shanghai Composite seems to be in short term pullback mode while Emerging Markets consolidate in the downturn with signs of a possible reversal higher. Volatility looks to to have settled back into the lower range putting the wind at the back of the equity index ETF's SPY, IWM and QQQ. Their charts showed great strength last week and no reason for it to stop next week. Use this information as you prepare for the coming week and trad'em well.