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Dr. Kris
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Dr. Kris has two degrees from MIT because one just wasn't enough. Her life goal was to figure out the universe and having done that (at least to her satisfaction), she decided to tackle something even more difficult—the stock market. Applying the scientific method along with an insatiably... More
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Stock Market Cook Book
  • Intraday Market Notes: For-Profit Educators Sinking Fast -- October 17 0 comments
    Oct 17, 2012 4:52 PM | about stocks: BAL, FIW, APOL, ESI, STRA

    4:00 pm ET: The major averages continued in rally mode and the burning question now is whether they can keep it up. They're still not back to their September highs, although the S&P is getting close. Their daily charts are showing a series of lower lows and lower highs--a bearish pattern--and one that is especially pronounced in the chart of the Nasdaq. The fact that the VIX is still hanging above support is a sign that this rally still has some juice left.

    For-profit educators took it on the chin today as the Apollo Group (APOL), operator of the University of Phoenix, reported disastrous numbers. How bad were they? Fourth quarter revenues were off by 60%. The company issued full-year guidance well-below the Street's expectations forcing management to close 115 campuses. The stock got walloped ending the day 22% below yesterday's close to a level not seen in over ten years amid myriad analyst downgrades (didn't they see this coming?). The rest of the group suffered along with it as both Strayer (STRA) and ITT (ESI) both hit new lows. This group will likely see further contraction as they begin to compete with cheap online alternatives offered by traditional universities. (My alma mater, MIT, is a pioneer in this area.)

    In commodities, the cotton etf (BAL) broke out of a four month base on heavy volume while one water etf (FIW) broke major resistance to make a new high.

    That's about it for now.

    Note to Subscribers: There is one new Stock Darling. My candidate for Stock of the Day blew up as further research indicated possible stock manipulation. I shall strive to replace it.

    Stocks: BAL, FIW, APOL, ESI, STRA
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  • Intraday support/resistance: $SPX 1965/1972, $DTX 817.75/825.25, $DJIA 16915/16965, Nasdaq 4388/4422, $RUT 1170/1178; $VIX 11.5/12.1
    about 8 hours ago
  • Intraday support/resistance: $SPX 1957.6/1976.4, $DTX 812.8/822.2, $DJIA 16878/17022, Nasdaq 4367/4444, $RUT 1165/1185: $VIX 11.7/12.85
    1 day ago
  • Market Movers: Tech Breakouts & Commodity Breakdowns -- July 6 $AAPL, $BBRY, $MHG
    2 days ago
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