The coronavirus pandemic is wreaking havoc on the global economy. Governments are closing malls, restaurants and literally all kinds of social gathering places, and even putting entire cities on lockdown. In the meantime, stock market indices are in free fall. The S&P 500 is down 28.7% YTD and the Dow Jones Industrials lost 35.2% since…
SEIC Stock Enters Elliott Wave Buy Zone
Four months ago, we published an article on SEI Investments (NASDAQ:SEIC), saying that the “stock can lose half its value in a recession.” At the time of writing, November 5th, 2019, the economy was still firing on all cylinders and most analysts saw nothing but blue skies. And indeed, the unemployment rate was at a…
Three Years Ahead of the COVID-19 Airlines Disaster
As the coronavirus pandemic rages on, governments are taking measures to restrict unnecessary travel and mass gatherings. The airlines sector is probably the one being hit the hardest by the restrictions. The high fixed costs and huge debt loads of the airlines make them extremely vulnerable to economic downturns. With international and domestic travel on…
Nikkei Down 30% on COVID-19 Fears. Time to Buy?
The last time we looked at the Japanese Nikkei 225 was on November 19th, 2019. The index was comfortably trading above 23 400 and the uptrend seemed very healthy, on the surface at least. And indeed, in December, the price reached 24 116. However, the fact that prices have been rising in the past didn’t…
Five Months Ahead of HollyFrontier ‘s Collapse
Oil stocks plunged across the board Monday following an epic OPEC+ negotiations failure. The price of oil was down over 31% yesterday after Saudi Arabia launched an all-out price war. One of the many casualties was HollyFrontier, which we covered over five months ago. HFC tumbled almost 16% to close Monday’s session at $24.10. And…
Disney Stock’s Weakness Exposed by COVID-19 Panic
The coronavirus panic caused indiscriminate selling of almost every stock, regardless of the underlying company’s position. Among the hardest hit blue chip stocks was Walt Disney. The bearish logic behind the 28% selloff is that a big part of Disney’s revenue comes from its movies and parks. People fearful of infection would rather stay home…
Bank of America Lost 30%, but Sent a Warning First
The coronavirus panic coupled with the Fed’s emergency 50 basis points rate cut sent bank stocks plunging very quickly. Bank of America, one of the “too big to fail”, is down almost 30% from its December 2019 high. However, BAC is in a much better financial shape than ten years ago. In fact, the company…
COVID-19 De-Risks Royal Caribbean Stock
COVID-19, or the coronavirus as it is commonly known, is taking its toll on the travel industry. Cruise ship operators are among the hardest hit as ports refuse docking to ships with infected passengers on board. The share price of Royal Caribbean Cruises, for example, is down over 52% in less than two months. The…
Walgreens Stock Dips Below $45 as KKR Deal Stalls
We last wrote about Walgreens stock on November 11th, 2019. Shares were hovering around $62 after news that KKR’s was willing to take the company private. It was going to be the largest leveraged buyout in history. We, on the other hand, were more interested in what was going to happen with the stock in…
Avoiding Boeing ‘s Perfect Storm and 40% Crash
The past year has been a real nightmare for Boeing investors. The stock reached an all-time high of $446 a share on March 1st, 2019. And just when it looked like the sky is the only limit, things took a sharp turn for the worse. Two of the company’s 737 MAX planes crashed within five…
“DAX Falls on Coronavirus Fears.” It’s Not That Simple
The coronavirus outbreak is a convenient explanation for everything market-related these days. According to the media, investors across the globe panicked last week that the virus, which has taken over 3000 lives already, is going to become a pandemic. Major stock market indices in the U.S. lost roughly 14% in the past five trading days.…
S&P 500 – Elliott Wave Ahead of the Coronavirus Panic
It’s been a bloody week for stock investors. Markets are crashing across the globe on fears that the coronavirus outbreak, which originated in Wuhan, China, is going to become a worldwide pandemic. The DJIA and the S&P 500 lost 10.8% and 10.7% in the past four days, respectively. As of this writing, the futures market…
Is Coronavirus the Black Swan to Sink Dow Jones?
Stocks around the globe sold off Monday on fears coronavirus is getting out of control. The virus appears to be spreading from Asia to Europe as Italy announced it is putting 12 towns under quarantine. Dow Jones fell 3.56% in response to the news, while the S&P 500 lost 3.35%. Now, everyone is wondering if…
Chipotle Bulls Reach the Promised Land. Now What?
In late-March 2019 we published an analysis, stating that Chipotle bulls were aiming at $900 a share. The stock was hovering around $700 at the time, but the momentum it was gaining made us confident it can rise some more. The Elliott Wave chart our confidence stemmed from is given below. Following a perfect 5-3…
Buying Rational Stock Now is Irrational
Rational AG is a German kitchen appliances and processors manufacturer, founded in 1976. With over 750,000 appliances on the market, the company is one of the leaders in the industry. Not surprisingly then, its stock price has been rising for quite a while now. 17 years ago, in March 2003, Rational stock fell to 25.32…
