Heightened levels of market volatility in recent months have triggered a flood of uncertainty among fundamental investors and active traders alike. Globally, there is rising interest in hedging against sharp sell-offs, and many are turning to hard commodities such as precious metals. In this article, we take a look at several charts of interest and try to determine how followers of technical analysis will be positioning themselves over the weeks and months ahead. (For more, see: Traders Turn to Precious Metals Among Volatility.)
ETFS Physical Precious Metals Basket Shares
The recent market-wide pullbacks have led some traders to believe that the selling pressure in some of the precious metals will continue well into the summer. By taking a look at the chart of the ETFS Physical Precious Metals Basket Shares, you can see that the price seems to have reacted to a nearby level of resistance and has started to retrace toward the major support of its 200-day moving average (red line). This is common behavior and shouldn’t really come as a surprise to experienced traders. In fact, traders may want to look at the retracement as a buying opportunity because a bounce higher, followed by a break beyond the upper resistance, could force some to readjust their targets to $69.50, which is equal to the upper resistance plus the height of the pattern. The well-defined risk-to-reward ratios make this a segment to watch, and we’ll take a closer look at the a few components to see exactly how traders are trading the move. (For more, see: Precious Metals Pullback Suggests It Is Time to Buy.)
The recent pullback in precious metals has pushed prices toward major levels of support, generating lucrative risk-to-reward ratios.
Read more here: When in Doubt, Buy Precious Metals
Category: GLTR, GLD, SLV
Ameriprise Financial (NYSE: AMP) excels in customer service dimensions investors value most, according to data from research firm Hearts & Wallets’ 2018 Wants & Pricing report. The firm garnered “top performer” status in several areas that investors prioritize when working with a financial provider, including “explains things in understandable terms” and “understands me and shares my values”.
Read more here: Ameriprise Financial Earns Top Marks for Customer Service
Alcoa Corporation shares fell nearly 15% on Monday – its biggest single-day loss in nearly 10 years – after the U.S. government extended the deadline for companies to terminate their relationship with Rusal, the Russian aluminum giant that is under sanctions. The extended deadline means that Rusal will have time to sell off large amounts of aluminum that it had stockpiled following the sanctions, which is likely to negatively affect supply and demand.
Aluminum prices fell around 8% on the LME on Monday, while shares of many related companies tumbled in response, including Century Aluminum Company and Arconic Inc. , which both fell over 5%. Prior to the announcement, many analysts had been bullish on the market. Argus analysts recently noted that Alcoa would benefit from its pricing power amid the tighter market and reduced overall industry production. (See also: Alcoa Stock Breaks Out After Solid Q1.)
Aluminum prices fell sharply after the U.S. government extended the deadline for companies to terminate their relationship with Rusal.
Read more here: Rusal Extension Could Kill Aluminum’s Rally
Category: AA, CENX, ARNC
MINNEAPOLIS – April 23, 2018 – The Board of Directors of Ameriprise Financial, Inc. (NYSE: AMP) increased the company’s quarterly cash dividend by 8 percent, or $0.07 per diluted share, to $0.90 per diluted share payable on May 18, 2018 to shareholders of record at the close of business on May 7, 2018.
At Ameriprise Financial, we have been helping people feel confident about their financial future for more than 120 years. With a nationwide network of 10,000 financial advisors and extensive asset management, advisory and insurance capabilities, we have the strength and expertise to serve the full range of individual and institutional investors’ financial needs. For more information, visit ameriprise.com.
Read more here: Ameriprise Financial Increases Regular Quarterly Dividend
Technical and political headwinds could signal the end of the semiconductor sector’s long-term uptrend.
Read more here: Chip Stocks May Have Hit Their 2018 Highs
Category: MU, QCOM, AVGO, NXPI
Telecommunications giant Verizon Communications Inc. is a component of the Dow Jones Industrial Average. This stock is the cheapest among the 30 stocks in the average, with a P/E ratio of just 6.51 and a dividend yield of 5%, making it the leader of the 2018 “Dogs of the Dow.” Verizon Wireless is one of the top smartphone platforms in the country. The company is set to report earnings before the open on April 24.
Verizon stock closed Friday at $47.90, down 9.5% year to date and in correction territory at 12.5% below its 2018 high of $54.77 set on Jan. 26. The stock set its 2018 low of $46.20 on March 23. The stock is underperforming the Dow 30, which is down 1% year to date and is 8.1% below its all-time high set on Jan. 26.
Analysts expect Verizon to post earnings per share of $1.11 when it reports first quarter results on Wednesday. Investors will have a watchful eye on the revenue line as Verizon missed estimates on this metric in the fourth quarter. One key will be revenues from wireless services, which rose in the third and fourth quarters. Verizon owns AOL and Yahoo, which could increase growth potential, as might the roll-out of 5G services. (See also: How Verizon Built a Customer Base of 150M.)
Verizon reports earnings before the open on Tuesday with a P/E ratio of just 6.51 and is the cheapest “Dog of the Dow,” with a 5% dividend yield.
Read more here: Verizon Is a Cheap Stock With a 5% Dividend
Caterpillar reports earnings before the open on Tuesday with an elevated P/E ratio of 122.14 and a decent dividend yield of 2.04%.
Read more here: Caterpillar Reports Earnings Above Key Levels