Common Overlooked Tax Deductions

It is March 17, 2014, you have exactly one month to procrastinate before you have to file your tax return. I thought it would be nice if I listed the most common overlooked tax deductions, as you burn the midnight oil.

STATE AND LOCAL TAXES

You can deduct your state, and local taxes on Schedule A of Form 1040. If you live in a state such as Florida, then you to deduct sales tax, instead of state and local taxes. Even if you live in a state that has a state income tax, you can deduct sales taxes or state and local taxes. Whichever amount is higher.

EDUCATOR EXPENSES

If you are an educator, you can deduct $250 as an above the line deduction, not needing to itemize to take it. If you spent in excess of $250, which most educators do you can still deduct this amount on Schedule A as a miscellaneous itemized deduction, subject to the 2% floor. This can be a very powerful tax deduction, so don’t lose out.

SPECIAL EXCLUSION OF INCOME ON FORECLOSURES AND SHORT SALES

Typically, if a debt is forgiven from places like a credit card company, you have to claim the amount is income. This is true of foreclosures and short sales. The amount that the mortgage company forgives, is taxable to you. However in 2007, a law was passed allowing for the exclusion of income from foreclosures and short sales. You can also exclude the cancellation of debt, if you are insolvent. That means you owe more than your worth. All you have to do is fill out a special form. I have saved clients thousands of dollars because I knew this rule.

ROLLOVER OF AN IRA TO CHARITY

In theory, this will be the last year, that you can write off a direct rollover of an IRA to charity. I say, in theory, because this is been on the chopping block every year since it was introduced. If you made a direct rollover to a charity of your IRA, 401(k), 403(b), or pretty much any retirement account, you can write it off as a charitable deduction.

These are just some of the most common overlooked tax deductions.

Craig Smalley is the managing partner of CWSEAPA®, LLP, which is an accounting and financial firm located in Delaware, Florida, and Nevada. Craig has been Admitted to Practice Before the Internal Revenue Service, is a Certified Estate Planner™, and is a Certified Tax Resolution Specialist™. Craig specializes in taxation and IRS representation all the way through the United States Tax Court. Form more information visit www.cwseapa.com, call 1-844-CWSEAPA, or email him at [email protected]

Discontinued item to sell on eBay – Tylenol Arthritis

Tylenol Arthritis pain reliever is selling at inflated prices on eBay. One bottle of 250 caplets sold for $31.99 on March 5. Apparently, Tylenol Arthritis pain reliever has been discontinued as many listings have the keyword “discontinued” in the title. There was a recall of Tylenol Arthritis in 2009, however it was put back on the shelves again months later.

Tylenol Arthritis contains no aspirin, and can be used to relieve pain from arthritis, muscle aches, and backaches. It relieves osteoarthritis pain as effectively as naproxen sodium, the medicine in Aleve, and won’t irritate the stomach the way aspirin or ibuprofen can. The product contains 650 mg of acetaminophen and comes in 200- 250 count bottles. Some of the sellers on eBay are located in Canada, but many are in the USA. Expiration dates are out to 2015.

Look for Tylenol Arthritis in closeout stores, Big Lots, dollar stores, and on clearance in grocery and drug stores. You may also find it at flea markets, garage sales, or estate sales. Be sure to check the expiration date since eBay does not allow the sale of expired over the counter drugs.

AT&T to buy DirecTV for $48.5 billion, countering Comcast and Time Warner merger

AT&T agreed on Sunday to buy the satellite television operator DirecTV for $48.5 billion, trying to tilt the balance of power with media companies as the market for broadband Internet and video shifts, according to the New York Times, which broke the story on Sunday. This is the latest sign that the wireless industry and the U.S. television market are set to converge as customers consume more video on their mobile devices.

AT&T is offering $95 per DirecTV share in a combination of stock and cash, a 10 percent premium over Friday’s closing price of $86.18. It will finance the cash portion, $28.50 per share, with funds on hand, asset sales and financing already lined up.

The transaction has a total value of $67.1 billion, including the assumption of DirecTV’s net debt.

To help its case with regulators, AT&T will sell its roughly 8 percent stake in Carlos Slim’s America Movil, worth roughly $5 billion. DirecTV has some 18 million customers throughout Latin America.

AT&T and DirecTV made their announcement just a few months after Comcast Corp offered $45 billion for Time Warner Cable Inc., a transaction that would create the leading U.S. cable and broadband Internet powerhouse. That merger would combine the largest two U.S. cable companies in what would be “an all-stock deal. “The Comcast proposal is now awaiting regulatory approval.

The AT&T and DirecTV deal is seen as a counter to the Comcast and Time Warner deal.

Comcast is headquartered in Philadelphia, Pennsylvania and in January of 2011, acquired a 51% majority stake in media conglomerate NBCUniversal from GE. Comcast also has significant holding in several cable networks (including E! Entertainment Television, the Gold Channel, and NBCSN), a distribution business (ThePlatform), and other related businesses.

Tim Warner Cable is headquartered in the Time Warner Center in Midtown Manhattan in New York City. Formerly known as Warner Cable Communications, is an American cable telecommunications company that operates in 29 states and has 31 operating divisions. It is the second largest cable company in the U.S. behind only Comcast.

This deal could yet be upended, as a Comcast and Time Warner merger would face tough scrutiny from the Federal Communications Commission, said an analyst from MoffettNathanson LLC. The merged company would account for almost three-quarters of the cable industry, according to the National Cable Television Association.

The merger would also face review from the Department of Justice for anti-trust issues.

The combination with DirecTV, the No.1 U.S. satellite TV provider with 20 million customers, would beef up Dallas-based AT&T’s packages of cellular, broadband, TV and fixed-line phone services. For DirecTV, the deal will enable it to offer broadband Internet for the first time to its U.S. customers, filling in a gap that had made the company vulnerable to cable rivals, which can provide Internet service through their networks.

During a conference call, AT&T CEO Randall Stephenson said, “It gives us the parts to fulfill a vision we have had for a couple of years, that is, the opportunity and the ability to take premium content and deliver premium content over multiple points for the customer, whether it be through a smartphone, through a tablet, or television or laptop.”

According to a report in Reuters, Stephenson’s counterpart at DirecTV, Mike White, will stay on to run the satellite television business, which will continue to be based outside Los Angeles in El Segundo, California. AT&T currently offers a video service known as U-Verse and Stephenson said during a conference call the company would continue to offer it after the acquisition is completed. It expects the deal to close in about a year.

DirecTV, founded in 1994, has changed hands before. It had been previously owned by Hughes Electronics, which was part of General Electric, Rupert Murdoch’s News Corp, and its most recent owner Liberty Media, which sold its stake in 2009.

The deal, which comes after a 25 percent gain in DirecTV’s stock price this year that was fueled by takeover speculation, represents a potential win for Warren Buffett’s Berkshire Hathaway, the satellite provider’s top shareholder.

AT&T will not have to pay a penalty if regulators veto the deal.

Sources:

New York Times – AT&T to Buy DirecTV for $48.5 Billion in Move to Expand Clout

Reuters – AT&T makes bet on video with $48.5 billion DirecTV bid

Allvoices.com – Comcast agrees to acquire Time Warner Cable Deal for $45.2 billion in ‘all stock deal’

The customer service week that was – 14-03-15

What has happened in the customer service industry in the week ending March 15, 2014 and what people are talking about.

The Happenings

Aspect Software Introduces Aspect Mentor for Real-Time Speech Analytics — Aspect Mentor monitors voice with speech detection across the contact center and automatically sends guidance notifications and intelligent response alerts, based on detected or omitted speech, to agents and supervisors.

Aspect Software Sets a New Standard for the Agent Experience With Aspect Workforce Optimization 8.0 — Icons, widgets and customizable dashboards of new intuitive graphical user interface remove technology barriers, improves agent engagement, Cloud-optimized platform integrates with full suite of Aspect products to provide more complete contact center solution, New capabilities allow for tighter integration between front and back office operations

ASC Launches Groundbreaking Workforce Optimization Suite neo 3.0 Designed for Cloud Solutions — neo 3.0 offers new capabilities for quality and performance management, communications recording, speech and desktop analytics, eLearning/coaching, customer feedback and workforce management to improve business performance

New Avaya Contact Center Solutions Help Companies Master the Omni-channel Customer Experience — Latest solution unifies and simplifies multichannel self-service and proactive engagement with a single, software platform, transforms customer service strategies with combined SMS, email, and phone-based campaigns that increase results, and intelligently coordinates services and resources based on real-time insights

The Talk

3 Simple Ways To Upgrade Your Call Center Experience – Business2Community.com, Adele Halsall

Everyone Can Talk…But Can Your Customer Service Reps Listen? – PhonePro.com

There’s a link between employee engagement and customer loyalty – RetailWire.com, Bill Hanifin

5 Lessons All Departments Can Learn From the Customer Service Department – Linked.com, Blake Landau

Quality Standards for Great Customer Experiences – Customer Service Management, Errol Allen

What Is The Access To Cultivating Customer Engagement and Customer Relationships? – Customer and Leadership Blog, Maz Iqbal

Website to offer engineering students academic relief

Myassignmenthelp.com has launched assignment help to assist engineering in Chicago and across the globe.

The goal of the site is to help simplify the work and academic life of students.

The organization has a writing staff which comprises of experienced engineering writers who are highly qualified and have completed numbers of engineering projects. According to my assignment help project head, “Our professional writers have a writing passion to offer academic support to the young students.” Every writer holds at the very least a master’s degree holder in engineering.

Before joining writing team, each person undergoes a lengthy screening process to test skills. Through their site, many engineering students have approached the company for expert assignment help.

The site prides itself on assisting customers not only from Chicago, but around the USA, UK, Australia, Europe, New Zealand, South Africa, Japan, India, China, and many more.

All the given assignments are supported with different online references and offer Plagiarism reports which ensure 100% originality of assignments.

The online writing company also guarantees that their engineering assignments are delivered by the required deadline. All written assignments include with a money back guarantee to ensure that all students receive 100% satisfaction.

The City of Los Angeles sues Time Warner Cable for almost $10 million

Although Time Warner Cable (TWC) is in the process of completing a merger with Comcast, there’s a more pressing legal matter at hand. On Tuesday, WestsideToday.com that the Los Angeles City Attorney’s office has filed a lawsuit against TWC for close to $10 million.

In a statement, Mike Feuer, L.A. City Attorney, alleged that TWC has is delinquent on municipality fees. They’ve refused to pay money the city says is owed for Public, Educational, and Government (PEG) fees.

Time Warner Lawsuit Details

In the 24-page complaint, Feuer says that the City of Los Angeles gave TWC the ability to billions in revenue because of local franchising. In turn, they have flat-out refused to pay the previously agreed upon fees, shortchanging taxpayers out of millions of dollars. The monetary details of the lawsuit are as follows:

* Los Angeles is seeking $9,697,896 from the TWC lawsuit

* Over $2.5 million is owed for 2008 and 2009 PEG fees

* Close to $7.2 million is overdue for 2010 and 2011 PEG fees

Supportive Evidence for L.A. VS TWC Lawsuit

Los Angeles City Attorney provided the Courts with two different arguments as supportive evidence against Time Warner Cable:

1) Time Warner has been allowed to have the monopoly over providing cable TV services to the local residents of the City of Los Angeles. This means that no other cable company is allowed to provide services within the jurisdiction designated to TWC. Yet, they have blatantly refused to pay the fees they’re obligated to, according to the terms of the monopoly agreement.

2) The expected PEG fees were used by Los Angeles City Hall to pay for what they call “core services.” Some of these services include senior centers, parks, library operations, sanitation services and police and fire protection. Since the fees have not been paid, the City is currently in the whole after dishing out money for core services.

In 1986, Los Angeles City Hall began the authorization of “local cable franchises.” They create geographical segments within the limits of the City for this purpose.

Cable Communications Act of 1984

California law, along with The Cable Communications Act of 1984, gives the City the power to give Time Warner Cable the “right to occupy valuable public property.” This right allows them to “build a system to provide cable.” In exchange, cable companies given this “right to occupy” must pay franchise fees that are “equal to five percent of the operator’s gross revenues.”

“The Act also allowed a city could enforce requirements for PEG facilities and equipment… City Hall issued 12 local franchises to Time Warner, according to the complaint.” Parimal Rohit of WestsideToday.com

Sears Holdings burning cash at an alarming rate despite Eddie Lampert’s spinning

Sears Holdings announced this morning that it lost $402 million, or $3.79 per share, for the period ended May 3, 2014. That compares with a loss of $279 million, or $2.63 per share, a year ago, according to Seeking Alpha. With Sears Holdings, it is not matter of a good news and bad news scenario. It is more like it is a matter of bad news and really bad news scenario.

In addition to its deepening troubles, the Wall Street Journal is reporting that Sears Holdings Corp. said it plans to close at least 80 stores this year.

First, for the “bad news” about Sears: Same-store sales improved dramatically. Sears has managed to improve same-store sales. Indeed, at Sears Domestic, same-store sales were actually positive by 0.2%, whereas on the whole, domestic same-store sales fell by 1%, which is significantly better than the previous quarter’s massive 6.4% drop. This could mean that “unfavorable weather” could have a positive impact on mall stores.

In spite of the fact that Sears got a $500 million dividend from Lands’ End and that it has reduced inventory in the quarter by a full $300 million (part of it due to LE’s spin-off, of course). Why the continuing cash burn? “What does Sears have to show for this $800 million source of funds?” asks Paulo Santos, a research analyst posting on Seeking Alpha.

Santos adds, “Well, it did reduce short-term borrowings by $100 million… but at the same time, cash in the balance sheet dropped by $200 million! This cash burning is now massive, and it doesn’t bode well.”

It does not.

Santos concludes, “While the improvement in same store sales is notable, there’s the chance that it is somewhat one-off, and having significant margin to boot.”

Santos also says that “At the level of cash burn and negative EBITDA Sears is operating at, it seems difficult for it to survive much longer than a couple of years.” Santos further contends that while “Lampert has been very creative in devising new sources of funds, but the money is being burnt just to keep the doors open.”

At this point, Sears Holdings equity is already down to $1.46 billion ($13.8 per share), and tangible equity is now negative by $1.1 billion. It remains to be seen for how much longer Sears is allowed to operate while building higher and higher risk for the entities financing it. The conclusion, Sears Holdings can no longer survive with out a miracle, or at least some crazy white knight saving the company from Eddie Lampert.

Stock market preview for the week of June 2, 2014

The S&P 500 pushed to record high closes in three sessions during the holiday shortened trading week. The index matched the week ago gain of 1.21% in its push higher and has increased in 23 of the past 33 sessions.

Average daily volume levels of the four days in the holiday shortened week increased 5.81% compared to the average daily volumes of the five days in the previous week. The week’s largest volume was seen on Friday, with the lowest volume seen on Thursday. The five day volume variance also increased 10.67% over that seen four days ago to 36.19%.

The S&P 500 finished at record highs on Tuesday, Thursday and Friday with Wednesday providing a small setback. The three higher closes has taken the index near the upper boundary of the 100 L at 1925.

Major Stock Market Indexes

The index charts of the Dow Jones Industrial Average, S&P 500, NASDAQ, New York Stock Exchange and Russell 2000 continued to show bullish signs as all five indexes finished the past week with gains.

The NASDAQ and Russell split for the week, each finishing two sessions higher and two lower.

The Russell 2000 gapped to the 50 EMA at Tuesday’s open and continued higher through the session. Although Wednesday finished lower, it held above the 50 EMA through the session and Thursday began to widen the gap the index was running above its 50 EMA. Friday began higher, but the price slipped during the session breaching the 50 EMA briefly before rebounding bullishly to finish the session above it. The push higher during the week eclipsed the high seen in the previous cycle, giving it two higher highs in a row. All four sessions in the past week along with the previous Friday finished above the upper trend line of the recent downtrend, and it appears the Russell could have broken from its downtrend.

The NASDAQ saw a bullish cross as its 13 EMA pushed back above the 50 EMA on Tuesday. The NASDAQ continued to widen the gap it is running above the 50 EMA during the week, with all but Friday’s session low being higher than the previous session. Although the NASDAQ has not yet established an uptrend, the recent run higher makes it look likely it will.

The Dow Jones, S&P 500 and New York Stock Exchange each finished higher in three of four sessions during the week, with all posting small loses on Wednesday.

The Dow Jones finished Friday at a record high close. During the week it established and held a fairly steady gap above its rising 13 EMA. Although the Dow chart would probably look much more bullish without the component changes from last September, the remaining components are taking up the slack in the recent lackluster performance of the additions. At the same time the additions are showing some signs that they might break out of their recent slump and a rebound to or near yearly highs seems possible.

The S&P 500 and New York Stock Exchange finished at record high closes three times in the past week, The NYSE held a fairly steady gap above its rising 13 EMA during the week, while the S&P 500 slightly but progressively widened this gap in its run higher.

The indexes are currently overbought so a pullback does not seem unlikely; however chart formations make it seem possible they could hold in or near overbought conditions for the time being. If a pullback where to occur, dips to or near the 13 EMA could be buy signals.

US Treasury Charts

The 20 year US Treasury Bond pushed higher in the first two sessions maintaining its uptrend before beginning to fall on Thursday. The bulk of this move higher was seen when the 20 year Treasury again gapped widely higher at the open on Wednesday finishing with the highest close in 2014. Although the regular session saw relatively little additional gains, it closed near the day’s highs. The 20 year began to slip off these highs on Thursday with Friday continuing lower.

The 20 year is fully overbought and has not fallen to fully oversold in almost two months even though it has finished 11 of the past 19 sessions lower. Although the price has continued higher during this timeframe due to large opening price gaps, without these gaps, the price drops during normal trading hours have far outweighed the increases. Lacking these gaps, it seems possible the 20 year T-Bond could have established a downtrend during this timeframe due to the lackluster price movements during normal trading hours.

The normal trading hour price action makes it appear that domestic US Treasury Bond investors are taking profits into the foreign investments that are causing the higher opening price gaps. It seems possible if these price gaps cease, profit taking on these foreign investments could continue. This chart appears to be bullish, but continues to show signs of faltering.

Uncovered price gaps are nearly always eventually covered. The 20 year has left several gaps higher uncovered in its recent move higher, but the one of greatest concern to those recently becoming long holders of Treasury Bonds was that of March 12. That gap occurred three days into the recent bullish run off of lows and was very near the yearly low.

Long term Treasuries price charts continue to look bullish, but setting aside the recent large opening price gaps higher, they appear somewhat bearish. Therefore at this time the Treasury charts appear neutral to somewhat bullish for US stocks prices.

The interest rate on the 10 year US Treasury Note fell in the first two sessions before rebounding late week. It was again turned back at the 13 EMA on Tuesday and finished that session a little lower. It gapped lower at Wednesday’s open and finished the session steeply lower, breaking below earlier support and continuing in the recent downtrend. It continued lower early Thursday, but rebounded strongly to finish the session higher, with Friday’s finish adding to those gains. This chart continues to look bearish. It is in fully oversold conditions.

Gold

Gold slipped to about 1291 early Sunday night before beginning a small rebound shortly after the Sydney open that carried it back to about 1293, but slipped off that high to finish the night at about 1292.

Early Monday morning gold pushed back to about 1294 before trending lower in bounces to about 1291 by the London open. It rebounded back to about 1293 and traded tightly to this level through the US holiday shortened session. It slipped back to 1291 after the New York Globex open Monday night, trending in bounces higher to about 1293 after the Hong Kong open, then slipped back to finish the night at about 1291.

Tuesday trended fairly steeply lower until reaching about 1260 shortly after the Hong Kong open Tuesday night. It rebounded back to about 1265 and traded closely to it for the remainder of the night, finishing at about 1264.

Wednesday gold trended higher to reach about 1266 shortly after the New York open, but dropped back to 1256 by midsession. It rebounded back to 1260 before the NYMEX close and then bounced slowly lower to reach 1255 about midsession of late night trading in Hong Kong. It rebounded off this low to finish the night at about 1258.

It continued higher to about 1260 early Thursday before reversing trend and falling to about 1251 just before the London open. It trended slowly higher again to reach about 1260 midsession in New York. Gold slipped slowly lower off that high to 1256 in Sydney, but then pushed higher again to about 1261 early in the session in Hong Kong. It slipped slowly off that high to finish the night at about 1257.

Friday gold traded within a point of 1257 until slipping lower near the London open to 1253. It bounced between 1252 and 1256 until slipping steeply lower near the London close during New York trading then more slowly lower to reach a midsession low of about 1243. It trended mostly higher off this low into a New York Spot close of 1249.30, which was a fair amount lower than the previous week’s 1292.30 New York Spot close.

Gold took a fairly bearish turn in the past week, fracturing support levels established after breaking lower from the March rebound. Gold began a slight downtrend after the initial drop from March highs that resulted in a more or less sideways move along that support but saw gradually lower highs in rebounds during that time. This established a downward biased wedge on that support line.

This sideways move and wedge pattern broke lower at about the time it ran into the upper trend line of the downtrend established in the break lower from the third rebound in 2012. March’s high also turned lower near this upper trend line. The upper trend line of this downtrend will probably offer resistance, as could the recently broken support level. These resistances could limit upside potential in gold.

It therefore seems possible the recent break lower could send gold to a retest of earlier lows. This makes support at about 1190 look like an important testing ground, with a break below this support being a very bearish sign.

This week’s drop sent gold to a small monthly loss on both the London Fix and New York Spot.

A continued breakdown in gold could be bullish for stocks.

S&P 500 Constituent Charts

Overall the constituent charts continue to show bullishness.

Many of the constituents are in very bullish runs consisting of one or two day pullbacks followed by several days of moves higher. Many are riding higher above the 13 EMA and many are rebounding higher after drops to or near the 13 EMA.

The constituents continue to increase the numbers breaking above long or short term resistances.

Increasing numbers are breaking to 52 week highs with others nearing these levels.

More of the constituents that have not yet turned higher are showing signs they could turn higher from recent pullbacks. Several broke above upper trend lines in recent downtrends. Some moved to higher highs, others rebounded from lower lows and some established uptrends after having two consecutive higher highs and higher lows. Some broke above the 50 EMA after having fairly long draughts below it. Many of these stocks are moving higher above the 13 EMA or are beginning to ride above it more often than not. Some are still basing, but appear to be nudging higher in these bases.

Many of the constituents that took large moves higher on good earnings news appear to be rebounding after initial pullbacks in these higher moves. Some have already breached the initial highs while others appear to be rebounding off support levels like the 13 EMA. It seems likely many of these stocks could continue higher in these runs. Some that took these large moves higher on good news have continued fairly steady higher, without much of a pullback after the initial surge.

Many of the Biotech’s that took large pullbacks earlier have seen substantial rebounds off lows in those falls.

The staggering pattern continues to strengthen.

The index is overbought so it seems possible that a pullback could be seen in the week ahead. It looks likely that many of the constituents could move higher into that pullback limiting the drop or even nudging the index higher. A fair number of the constituents have established trends of holding in or near overbought levels. It seems possible some of the constituents that have not yet established a trend of holding in or near overbought levels are in runs that could do so and this could add further buoyancy. The S&P 500 currently holds the most bullish chart of the indexes covered. Even though the index is overbought, a pullback is not a given. It seems possible if one is seen it could be short and fairly small and therefore it seems possible the index could move higher in the week ahead.

Indicators

Although the indicators featured in these articles are not always correct, they have been many times and being so they are worth reading about and taking note of.

The +/(-) 90 D and 100 L indicators are currently active. See a more detailed description of most of the indicators developed through research and featured in these articles here.

The +/(-) 90 D that became active on Feb 21, 2014 has performed as follows to this point in the format: highest close / lowest close / last close.

+4.76% / -1.12% / 4.76%

The +/(-) 90 D will expire in 22 trading days. Due to this expiration a 90 E will become active in 9 trading days. The indicator becomes active 13 trading days before the expiration and remains active for 13 trading days after the expiration resulting in a 27 trading day active period.

Although not always the case, as can be seen in several instances in past articles the 90 E has been present during periods that the S&P 500 has exhibited bearish traits. The indicator is not always present during bearish times, occasionally it is present during bullish moves too and a couple of these instances are also covered in past articles. The past two occurrences of this indicator saw a little of both beginning with a bearish period and ending with a more bullish move.

It seems possible this indicator could become active as the index enters potential resistance at the 1940 to 1955 MRL. The resistance at this level appears to have the potential to provide a significant pullback on the index, but it does not seem likely this resistance is strong enough to provide a large pullback if a significant pullback is seen. There are some fairly good reasons to believe the index could move past this level without seeing a significant drop, but if a significant pullback is seen, it seems likely it could remain shallow, probably within the 3% to 5% range.

The S&P 500 record high finish Friday of 1923.57 pushed near the upper resistance level of 100 L at 1925. Although the index is overbought, which might cause a short term pullback at this resistance, resistance in the upper portion of the 100 L appears soft so it seems possible the index could break above the 100 L in a rebound from that pullback. It also seems possible the index could begin to hold in or near overbought conditions, therefore this resistance level could be broken in a continued run higher.

Current Cautions

The index rebounded to recover from the significant drop seen within the 100 L. The upper resistance level of the 100 L appears to be softer than the lower level. It seems possible the index could continue to trend higher and break free of the 100 L.

The next likely area resistance could be found once the index passes the 100 L at 1900 is in the Midrange Resistance Level (MRL) between 1940 and 1955. The MRL appears to have the potential to cause a significant pullback, but probably not a large pullback if one were to be seen there. It also seems possible the index could move past this level without incidence.

It appears possible the index could reach the 1940 to 1955 MRL in conjunction with the expiration period of a 90 Day indicator. The expiration period of a 90 Day indicator activates a 90 E indicator. Although not always so, the 90 E indicator is potentially bearish as the S&P 500 has often exhibited bearish traits during the active periods of this indicator in the past. Therefore the presence of a 90 E indicator at this resistance increases the chances a significant pullback could be seen. The expiration period also falls within a timeframe that is sometimes somewhat bearish for stocks.

At the same time, the long sideways move at the 1883 resistance appears to have increased upward tensions in many of the constituent stocks. It does not seem likely these tensions could be fully relieved in the relatively short move to the MRL, which could limit the downside potential at this resistance. Although the potential for a significant pullback could increase if the index should reach this resistance with a potentially bearish indicator active and during a potentially bearish timeframe, barring any unforeseen circumstances, it continues to seem unlikely a pullback at this level would be large and still might not reach significant levels.

Recent chart action in Treasuries and Gold make it seem possible they could add to pushes higher in equities. Although Treasury Bonds have pushed to the highest levels seen in 2014, they have performed poorly during US trading hours indicating a domestic selloff could be underway. Selloffs in Treasuries often make their way into equities. Gold appears to have begun a bearish move lower and if it continues, this selloff could also add to a move higher in equities.

There is a slight chance that resistance could also be seen at 1970, but this resistance does not appear to have the potential to cause a significant pullback. If the resistance at 1970 is seen at all, it will probably do little more than slow the index’s ascent for a relatively short duration.

Average daily volume levels of the four days in the holiday shortened week increased 5.81% compared to the average daily volumes of the five days in the previous week. Although a volume increase was seen, it was relatively small and was seen in a continued move higher. It was also probably affected somewhat by the shortened trading week. The week’s largest volume was seen on Friday, with the lowest volume seen on Thursday. The five day volume variance also increased 10.67% over that seen four days ago to 36.19%, but still within levels normally seen during bullish moves higher.

There continues to be many reasons to be bullish at the current time. Any pullbacks in stock prices seen along the way are probably a good opportunity to add.

If the index continues within the trend established off the crash lows, it seems possible it could reach the 2000 to 2100 level in seven to 16 months if it reaches this level near the upper trend line and within 34 to 40 months if it reaches this level near the lower trend line. The data suggests the Midrange Resistance Level (MRL) at 2035 to 2055 could hold the resistance level of concern within this range at 2040. More details of this potential resistance can be seen in past articles.

Please note there is no established resistance in the MRL levels before the index has reached these levels. Several instances have proven to hold resistance once reached; however MRL levels that the index has not yet reached are only the most likely levels that resistance will be seen based on research. Back tests of the data used to project these resistance levels work well, but they are not always exact, and these resistances could react sooner or later than expected, it is also possible the resistance will not be seen at all.

Comments:

Recently attention was drawn to the retail sector that had underperformed during the long sideways move on the S&P 500. Although some continued to perform well, the financial sector was also hit fairly hard during this time period as some in this sector fell rather drastically. Recently many of these charts are showing signs they are beginning to rebound from lows. Many in this sector have continued to hold low P/E ratios since the financial crisis, even those that saw earnings rebound quickly and have continued to see earnings growth. Pullbacks in many of these stocks appear to be buying opportunities.

Many of these sources of information were used in this article.

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Have a great day trading,
ronz

Access link to all of Ron’s past articles.

Disclosure: Ron has invested in several financial stocks over the past month or so and continues to look for opportunities in both the retail and financial sectors. Ron is currently about 81% invested long in stocks in his trading accounts. His investment level decreased over the past week due to the purchase of one issue with the cost of this purchase more than fully offset by the sale of one issue with a larger than normal position size and dividend payments. Ron feels he is slightly oversold at the current time. However he has and will continue to sell stocks that reach long or short term targets and also continue to add stocks he feels are at a great value through a variety of buy orders. Ron will receive dividend payments from 18 issues in the coming week and 21 in the following week. If no further investment changes are made during this timeframe these dividend payments will not change his investment level.

Some of the trades made during the past week may have been due to repositioning investments as discussed in a previous article.

Disclaimer: The information provided in the Stock Market Preview is Ron’s perception of the current conditions and what he thinks is the most probable outcome based on the current conditions, the data collected and extensive research he has done into this data along with other variables. It is intended to provoke thought of the possible market direction in his readers, not foretell the future. Ron does not claim to know what the stock market will do. If the stock market performs as expected, it only means he is applying the stock market history to the current conditions correctly. His perception of the data is not always correct.

This article is intended to provoke thought about investment possibilities. Acting on the information provided is at your own risk. You are urged to do your own research, and where appropriate, seek professional investment advice before acting on any information contained in these articles.

Pirates not welcomed in Sonoma?

I hate to continue to harp on this, and I certainly do not want to seem like a parrot repeating the same old words, but it never ceases to amaze me how crazy government acts when it comes to restaurants and those who invest countless hours of money, time, sweat and passion into a community.

Fact – Food and government do not go hand in hand. I thought former Mayor of New York City, Michael Bloomberg was a tremendous businessman and Mayor. But banning Big Gulp? Taking on Coca-Cola, all in the shadows of helping people become healthy is a bit of an infringement in that constitutional right, choice.

Let me explain.

Having followed municipal government is my newspaper career, and having dealt with those who sit in those hallowed city halls during my restaurant career, I can attest the combination is definitely based on love-hate, oil-water, good-guy-bad-guy. Full disclosure- I think anyone who throws their hat into the political ring deserves a medal and a mental examination.

Now before the feathers begin to fly, I must state I do not dislike elected officials. I dislike what happens to many of them once they step behind the inaugural curtain, drink the Kool-Aid and change their colors once the oath of office is taken.

For unexplained reasons, health departments, planning commissions, building inspectors and even citizens with an ax to wield look at restaurants as fair game for citations, warning letters and unsuspecting visits at inopportune times to inflict the power of the people.

Take the recent controversy over Burgers and Vine in Sonoma, California. After a historic building was renovated, remodeled, retro-fitted and reopened after being on the rental market off and on for seven years, were the new owners awarded a key to the city? No.

The owners were cited because someone complained the Pirate’s Flag – flying high – two feet – above the building, was not representative of what Sonoma stands for. We wouldn’t want anyone to think a group of Pirates, currently big in Somalia, had taken over the historic creamery.

Has the world gone mad? A controversy in wine country about a Pirates Flag, really.

Last week the ice cream parlor in Sonoma came under scrutiny because the door was too pink. Tell Pink that. She’d love it.

This week it’s the Pirates Flag? Where’s Clint Eastwood when we need him. Or Johnny Depp?

Once, in Deephaven, Minnesota, I had a visit from the Mayor at the time, because someone complained my business, The Cottagewood General Store, did not carry French’s Mustard. To the chagrin of my wife and partner, Karen, I ordered a five year supply of French’s Mustard – 15 cases – and did a pyramid stack in the window, explaining the reasoning behind the display. The complaining individual asked if I could take the display down as he was getting heat from the neighbors who supported the store. I accommodated, gladly.

Few complaints after that.

Now, I am not suggesting that Burgers and Vine’s owner’s ignore the municipal mandate and leave their flag up. Hell no. Take that down.

If the government doesn’t want anyone to eat their burgers or drink their brews under a Pirate’s Flag, I completely understand. Well, not really, but I have a solution.

I think in light of the Pirate’s Flag and in celebration of there being light in the corner again, everyone should wear a Pirate’s Eye Patch into Burgers and Vine to support the new owners.

Please leave the parrots outside. We wouldn’t want the health department to get annoyed.

Benefits Of Open Source Web Development

In the present market, open source web development is the buzz word. When you get in touch with a professional web design company, to check the platform they use for developing portals, most of them will be using the open source web development platform and this is because of the following benefits they are able to get.

Stability: In the community of business, users do not think about any changes to the platform they use, unless and until the job changes occur or when a more efficient process is identified for ensuring stability for ensuring their smooth operations. As this platform provides them the required stability, the professional web design company relies on it. This stability is achieved due to the fact that even though upgrades are introduced, it is not compulsory that the users should upgrade to the latest version. If they feel the already used version to be convenient and effective, they can continue with the same. On the other hand, when a proprietary software is used, the vendors will exert pressure to upgrade to the latest version as it will be helpful for them to provide better support and for easy bug fixing in the present version as compared to the older counterparts.

  • Audibility: When it comes to open source web development platform, it can be completely audited by anyone. Anyone can conduct a check over the claims made by developers, which will never be possible when using commercial software programs from vendors. The developers can easily identify, security threats, backdoor accounts, etc.…., when you choose open source web development services.
  • Cost: As this platform is free to use, an affordable web design company can effectively make use of this platform for providing the best service to their customers. As it provides them the opportunity to reduce their management costs, they are able to give affordability to their potential customers, thereby attracting more and more business owners to get the best Open source web development services. It also eliminates the need for virus checking as it has near zero-vulnerability to viruses. This will also reduce the chances of downtime.
  • Freedom and flexibility: The affordable web design company is able to get flexibility when using this platform. This will ensure that they can make any changes to make the website more tailor-made for businesses. There will not be any compatibility issues and it will be possible to do free internal data exchanges with other products.