Rolls Royce Plc

Rolls Royce Plc has gained more than 350% since 2009 lows, and seems to be reaching a long term resistance & short term upside looks limited. 850 is about the short term 50DMA support, and of course a better entry would be at 750-800, but that would probably take a global economic slowdown soon.

Of interest is that Rolls Royce started off as a luxury car maker, but now its mostly in the aerospace industry, & BMW was an airplane engine maker & now owns Rolls Royce Motors & making only luxury cars. A change of roles over a hundred years but both their stock price performance since 2009 are fairly similar at >300% gain, with Rolls Royce ahead.

Expedia

Expedia has doubled in value since March 2012, but recently looks like its losing steam & setting up a bearish rising wedge. Short term support is about 58, but I think it may decline close to 50 which happens to be near its 50DMA, once its wedge pattern breaks down. Of course, part of the reason why its breaking 52 week highs is probably due to the Priceline Kayak deal, so unless it gets taken out, I’m negative short term on this.

Apple trade update

Sold off all my Apple longs for a decent gain over 2 weeks. Where Apple goes, so does the Nazz. Next couple of months will be important to trade tactically. Despite December being a seasonally bullish period, lots of macro headwinds causing choppy markets.

Lots of companies bringing dividend payments forward into December to escape the possible tax increases next year.

Amongst other things, GS upgraded Crocs to a Buy. Will write up on it soon.

Olam

There’s little standing in the way of its price going back to test the June 2012 low of 1.52, & if it breaks that & doesn’t quickly recover, maybe Carson Block is right after all by valuing it at liquidation “nuisance”. 1.48 is the 23.6% fib extension so probably some volatility about there before its next move… its a long way down to “nuisance” from here. Any positive news flow should let it move back towards 1.80 near the 50DMA & short term I believe this will be so.

Intel Corp(se)?

Intel broke its 200WMA recently & short term is trying to get back up close to it. I think traders will try to range back to closer to its 50DMA which is converging onto the 200WMA at about 20-20.5 before it moves towards the next resistance level of 22-24. Weekly RSI is back to Oct 2008 lows as well. 18.5-19 seems to be an important multi year horizontal pivot line in the sand. NASDAQ recently only had a couple of market leaders such as Apple, Amazon & Qualcomm but laggards like this are worth a look as well.

That name pun was a result of watching too much Walking Dead recently. Intel is still alive & kicking on the contrary.

HSI – Symmetrical triangle formation

HSI has been doing well recently relative to the SPX. A combination of the hope of China bottoming, a new premier in place & its bear trend finally exhausting.

For the global funds, H-shares are the only way they can invest into Chinese listcos  since China A-shares cannot be touched by them. Looking at SHCOMP’s performance, its clear locals there are a lot more bearish than global funds actively invested into H-shares.

Here’s a recent article link about the peculiar fund flows into H-shares. Quote from article:” Bank of America Merrill Lynch’s global survey of fund managers, covering 248 managers with $695 billion of assets under management, found confidence in China’s economy was at a three-year high.”

Its chart has been forming a big symmetrical triangle, and short term looks overbought & hitting the triangle trendline resistance. Im not confident that its a leading global indicator, therefore short term would look to short as it remains in the triangle & hasn’t formed a clear breakout of this pattern.

Baidu

One of the favorite shorts by lots of traders may finally be showing signs of selling exhaustion, having retraced almost 50% of its peak value. Its sitting right above its 200WMA, which is usually hard to break down without further negative news flow. It seems to be forming a bullish falling wedge, & anything around 80 upwards should see some buy supports as its weekly RSI is back to Oct 2008 lows. I’ve got a feeling it’ll consolidate around this range for awhile before attempting to trend back up.