Dewey Knows Research

Whole Foods is going to have a nice quarter. Their unit costs have gone down through the underlying commodities dropping in price. By keeping their price the end user, whole foods will benefit.

The consumer is still going to high end grocery. The 365 brand is a great price for the customer, and great margins for Whole Foods. Also all 365 no GMO : )

Employees are much more qualified since the crisis as well, due to their unique employee interview / hire process.

Lastly, you have a look technically at the stock. Whole Foods (WFM) in the short-term is bouncing around a good head and shoulders bottoming pattern. On the long term chart, I think i see one huge cup handle with the second part of an upward parabola coming for the stock ? On the negative side, I see a medium term possibility of a head and shoulders top…I think the stock is going higher. Spread the word…

Until everyone is drawn in, i recommend buying solid stocks and the market as a whole on pull-backs. Stimulus is too much for stocks to collapse. This is a short term view or medium term since there is no question stocks will sell off when they sense easing will fall off. For now, global are trading like a never ending QE is in store from central banks. So you should trade that way and heres our picks. $LULU – $KORS – $WFM – $NFLX – $GS $JCP $SPY – hedge with the VIX forward month options or the $vxx.

Heres the Market (SPY)- looks like it missed out on the head and shoulders and technically could go higher

S&P 500

This chart say higher. $SPY $FB $NFLX $SLB $HW – We are going to hedge these position with the $vxx near its all-time lows.

If the #ECB does what they claim (they have to), and Bernanke does also (he has to,)  you will most likely see risk asset prices rise. This means equities, risk currencies, commodities, etc… #Silver and #Gold may be the best way to play this. Buy $SLV, $GLD, $USLV and $UGLD

A long 5 year chart of SLV, the Silver ETF is below. It has formed a wedge after a violent correction and consolidation. If it goes below 24.50 it is time to stop out. Otherwise, make some money and feel safe owning and holding something worth money rather than a piece of paper -

SPY three month chart, followed by the SPY decade chart – First you see the most reliable, bottoming head and shoulders pattern… But always trust longer-term charts… The second chart suggests this pattern playing out, but eventually falling victim to the larger head and shoulders topping pattern forming over the last 12 years.

S&P 500 – The trend is still there. You can make an argument we broke some important support levels then rebounded back, leaving ‘technical damage’. Remember, May is nearly here… Seasonal analysis must be apart of your strategies…

The Transportations are holding up …that said they have not confirmed Dow Theory

DeweyKnows likes risk, (S&P 500) until there is more of a breakdown here. I cannot truly confirm “risk off” yet. So game on. Buy SSO

Copper: JJC

Copper: JJC – The charts says we are in a consolidation pattern but to the up or downside? Look at a long term chart and I see a head and shoulders topping pattern…