Market Pressures_

Copper has pulled back to possible support, Gold and silver have moved down in response to the rise in interest rates and a the North and South Korean peace efforts.

Crude oil is consolidating after a two week run. Natural gas was stopped at the downtrend resistance line.

The US 30 year Treasury Bond has moved up off the February lows.

The US Dollar futures have broken above the March $90 high pivot.

___________________

S&P 500 Futures_

Monthly – In the move down from the 2662 short confirmation level. Trade pressures are up but continue the rollover. Volumes closed the Month of March as neutral. The next target down is 2304. Need a close above the old high at 2883 to confirm any weekly move higher.

Weekly – In the move down from the 2803 short confirmation. Trade pressures are down but rising to the neutral zone. Volumes are neutral. The next target down is 2569. Need a close above the 2796 to confirm a daily move higher.

Daily – Flat. The retracement down started after the break of the 2568 short entry was triggered. Trade pressures have risen into the neutral zone. Volumes are neutral, indicating equal buying and selling volumes.

Price stopped short of the 2590 expected downside target. The prior long entry of 2615 acted as support and produced the ensuing three day move up.

Any follow thru of the on the upside should retest the prior resistance at 2718.

The time cycle started with the February lows should end in this first week of May and could be the setup for a new leg up to test the strength of that 2718 resistance. If this fails then those lower targets at 2590 and 2560 can be met quickly.

Based on the pressures both these scenarios are equally likely. The hourly pressures are up.

The Navellier Top 5 Stocks have dropped IPGP and Added BA. This virtual portfolio has given up the prior gains in line with the market averages. The Expected sales increases and the expected earnings gains for these stocks all out-pace the market averages.

 

(from Navellier Research, pls do your own due diligence)
The following is provided by Navellier with technical comment from South Ocean Management –

https://navelliergrowth.investorplace.com/

Northrop Grumman Corp.

Northrop Grumman Corp. (NOC) is the aerospace and defense juggernaut that has shaped aviation history—and is positioned to shape its future. Recently, Northrop Grumman acquired aerospace and defense company Orbital ATK (OA) for $7.8 billion. This deal merges two of the largest D.C.-area public companies that have some of the biggest government contracts, and more importantly, improves U.S. technology as it relates to space, missiles and munitions.

This acquisition builds upon an already strong base for sales and earnings, as indicated by Northrop Grumman’s first-quarter earnings report. Compared with the year ago quarter, earnings per share jumped 14% to $4.21 while sales rose 5% to $6.7 billion. Analysts were expecting $3.64 EPS on $6.61 billion in revenue, so Northrop Grumman posted a 15.7% earnings surprise and a 1.4% sales surprise.

Northrop Grumman also increased its earnings outlook for 2018. The company is now expecting earnings per share to range between $15.40 and $15.65, up from its previous guidance of $15.00 EPS to $15.25 EPS. The revised guidance represents between 16.0% and 17.8% annual earnings growth.

Now, you may have noticed that NOC shares pulled back after the earnings announcement. Some are overreacting to the fact that Northrop Grumman didn’t raise its 2018 cash flow guidance, which currently stands at between $2.0 billion and $2.3 billion. In my opinion, this is just an excuse to take profits, and not a very good one at that. The fact remains that Northrop Grumman beat analysts’ estimates, and it guided well above the Street’s earnings expectations for 2018.

This is a company that I’ve held in Blue Chip Growth for over four years now, and that’s because it has rock solid fundamentals, thanks to an extensive portfolio of technologies and capabilities. It also doesn’t hurt that NOC has a solid 1.3% annual dividend yield and a strong track record of dividend increases. Keeping this in mind, I consider NOC an excellent buy on the dip. Buy this Conservative stock up to $344 per share.

SOM Technicals:

3-30-18: Closed at 349.12. Trade pressures are in the neutral zone. Volumes are bullish. The next target up is 361.68.

4-7-18: Closed at 352.99. Trade pressures are in the neutral zone. Volumes are neutral.

4-14-18: Closed at 350.00. Trade pressures are up into the neutral zone. Volumes are bullish. The next target up is 361.69.

4-21-18: Closed at 355.92. Trade pressures are up. Volumes are bullish to neutral. The next target up is 361.59.

4-28-18: Closed at 322.70. Trade pressures are down. Volumes are now neutral. The next target down is the 200 day moving average at 307.

5-5-18: Closed at 313.50. Trade pressures are down. Volumes are bullish to bearish. at the 200 day moving average.

5-11-18: Closed at 325.22. Trade pressures are down but rising. Volumes are now neutral. The next target up is 364.72.

5-19-18: Closed at 330.00. Trade pressures are in the neutral zone. Volumes are neutral to bullish. The next target up is 361.72

ABIOMED, Inc.

ABIOMED, Inc. (ABMD) is another monopolistic play that has been performing well on our Buy List. After all, this is the only medical devices company that provides technologies that replace or assist the pumping function of a failing heart. This is a big deal because heart disease accounts for some 800,000 deaths in the U.S. alone each year. So ABIOMED provides a life-saving service to tens of thousands of patients and their families.

ABIOMED is best known for its Impella devices, which are the world’s smallest heart pumps. Impella is often a safe treatment option for patients with advanced heart failure that have been turned down for open heart surgery. Last year, ABIOMED announced that it surpassed 50,000 patients who are treated with Impella devices in the U.S.

Given strong demand for medical devices to treat heart disease, ABIOMED’s business is booming. ABIOMED is on deck to release its fiscal fourth-quarter results on Thursday, May 3. And it’s shaping up to be a strong report. Analysts are forecasting $0.64 EPS on $164.3 million in revenue, representing 93.9% annual earnings growth and 31.8% annual sales growth.

Then again, analysts have revised the consensus EPS estimate 14.3% higher over the past 90 days. This indicates that analysts are struggling to nail down the company’s profit potential, and that ABIOMED will likely post blowout earnings, as it has for the past three quarters running. So, in the days leading up to its next earnings announcement, I recommend that you add this Moderately Aggressive stock up to $324 per share.

SOM Technicals:

3-30-18: Closed at 290.99. Trade pressures are down into the neutral zone. On the 25×5 moving average as support. The next target up is 323.10.

4-7-18: Closed at 286.22. Trade pressures are neutral. Volumes are neutral. the Next target up is 323.10

4-14-18: Closed at 297.00. Trade pressures are up. Volumes are bullish. The next target up is 323.10.

4-21-18: Closed at 305.92. Trade pressures are up. Volumes are bullish. The next target up is 323.10.

4-27-18: Closed at 300.83. Trade pressures are up. Volumes are neutral. The next target up is 323.10.

5-5-18: Closed at 349.28. Trade pressures are up. Volumes are bullish. the next target up is 359.38. 

5-11-18: Closed at 372.70. Trade pressures are up. Volumes are bullish. The next target up is 412.00.

5-19-18: Closed at 384.36. Trade pressures are up. Volumes are bullish. The next target up is 412.

The Boeing Company

After just one month on the Buy List, The Boeing Company (BA) has already skyrocketed to the Top 5 list. Boeing is a premier aerospace company and manufacturer of commercial jetliners, along with defense, space and security systems. It is best known for its commercial aircraft, including the 737, which is a favorite of domestic airlines like Southwest, United Airlines and American Airlines. Boeing also has a strong international presence, with customers in 150 countries. And it seems like every week Boeing wins another big order for its airplanes and helicopters.

So it’s no surprise that Boeing released strong first-quarter results this past week. During the first quarter, Boeing made 184 commercial deliveries and its backlog increased to $486 billion, including more than 5,800 commercial airplanes. As a result, first-quarter revenues rose 6% year-over-year to $23.38 billion, compared with $21.96 billion in the same quarter a year ago. Analysts were expecting sales of $22.24 billion.

First-quarter earnings from operations jumped 30% year-over-year to $2.88 billion, while net earnings soared 57% year-over-year to $2.48 billion. Core earnings per share surged 68% year-over-year to $3.64, up from $2.17 in the first quarter of 2017. The consensus estimate was for earnings of $2.58 per share, so Boeing posted a stunning 41.1% earnings surprise.

Looking forward to fiscal year 2018, Boeing maintained its current sales outlook and updated its core earnings forecast. The company still expects full-year sales between $96 billion and $98 billion, or 2.8% to 4.9% annual sales growth. Full-year core earnings per share are now expected to be between $14.30 and $14.50, up from previous guidance of $13.80 to $14.00. Overall, Wall Street cheered the better-than-expected first-quarter report and increased full-year guidance.

Along with its strong earnings prospects, Boeing also offers a 2.0% annual dividend yield. And Boeing should announce its next quarterly dividend any day now. In the meantime, continue adding this Moderately Aggressive stock up to $369 per share.

SOM Technicals:

4-27-18: Closed at 340.00. Trade pressures are up but declining to the neutral zone. Volumes are neutral. Holding at the 25×5 support of 331.00.

5-5-18: Closed at 334.43. Trade pressures are down but rising. Volumes are now bullish. The next long entry is 345.83.

5-11-18: Closed at 342.17. Trade pressures are up. Volumes have closed as neutral. The next target up is 371.60.

5-19-18: Closed at 351.25. Trade pressures are up. Volumes are bullish. The next target up is 371.60.

S&P Global Inc.

S&P Global Inc. (SPGI) continues its winning streak on the Top 5 list, returning for the third-consecutive month. As a refresher, S&P Global provides intelligence, data and analytics, enabling business leaders around the world to make more informed decisions. With multiple divisions, including S&P Market Intelligence, S&P Global Ratings, S&P Dow Jones Indices and S&P Global Platts, the company has evolved into the leading provider of credit ratings, and is relied on by countless financial professionals for its data and custom indices.

The past few weeks have been a busy time for S&P Global Inc. First, the company announced that it had completed its acquisition of Kensho Technologies, Inc. Kensho provides global banks and financial institutions with analytics, artificial intelligence, data visualization systems and machine learning. S&P Global purchased Kensho for $550 million, which was the largest acquisition price for an artificial intelligence company so far. The acquisition is expected to be profitable in 2019 and should broaden S&P Global’s already impressive portfolio of offerings.

Then, on Thursday, S&P Global announced first-quarter results that beat analysts’ expectations. Compared with the year ago quarter, earnings increased 24% to $509 million, or $2.00 per share. Meanwhile, sales rose 8% year-on-year to $1.57 billion. Analysts called for $1.97 EPS on $1.53 billion in revenue, so S&P Global Inc. posted a 1.5% earnings surprise and a 2.6% sales surprise.

The company also reaffirmed its full-year adjusted earnings guidance. S&P Global expects adjusted earnings per share to range between $8.45 and $8.60. This is in line with the Street view and represents between 22.6% and 24.8% annual earnings growth.

I must also mention that S&P Global has a long history of rewarding shareholders, having paid a consistent quarterly dividend for nearly 38 years. At current prices, SPGI has a 1.1% annual dividend yield; the company should announce its next quarterly dividend in the coming days. So if you haven’t already, I recommend that you buy this Conservative stock up to $200 per share.

SOM Technicals:

2-25-18: Closed at 191.67. Trade pressures are up. Volumes are bullish. The next target up is 203.26.

3-2-18: Closed at 189.02. Trade pressures are up but declining. Volumes are bearish. The next target up is 203.26.

3-11-18: Closed at 194.96. Trade pressures are up but declining. Volumes are bullish. The next target up is 203.26.

3-17-18: Closed at 192.51. Trade pressures are down into the neutral zone. Volumes are neutral. Support is the 25×5 at 189.

3-23-18: Closed at 186.49. Trade pressures are down. Volumes are bearish. Has just broken the 25×5 support. The next target down is 185.18, then 177.41.

3-30-18: Closed at 191.06. Trade pressures are down. Volumes are neutral. Consolidating at the 185 target.

4-7-18: Close at 189.74. Trade pressures are in the neutral zone. Volumes are bearish. Consolidating at the 185 downside target.

4-14-18: Closed at 190.76. Trade pressures are up. Volumes are bullish. Need a close above the downtrend resistance line at 196.38.

4-21-18: Closed at 192.96. Trade pressures are up. Volumes are now bearish. Support at 190.67.

4-27-18: Closed at 187.07. Trade pressures are down into the neutral zone. Volumes are neutral. The next target down is the 177.41 level.

5-5-18: Closed at 192.17. Trade pressures are down but rising. Volumes are now bullish. A new long entry at 192.04.

5-11-18: Closed at 199.99. Trade pressures are up. Volumes are bullish. The next target up is 204.16.

5-19-18: Closed at 197.92. Trade pressures are up. Volumes are now neutral. the next target up is 204.16

XPO Logistics Corp.

XPO Logistics Corp. (XPO) is a leading global logistics company that helps customers manage their goods more efficiently throughout their supply chains. Through its two reporting segments—Transportation and Logistics—XPO Logistics helps over 50,000 customers improve their productivity and lower costs.

Lately, XPO Logistics has been on a roll with its product expansions and updates. First, it is in the process of expanding its Drive XPO mobile technology to Europe. Drive XPO is a mobile app that gives carriers visibility across transportation modes and carrier operations are integrated with daily productivity tools. After successfully launching Drive XPO in the U.S., XPO Logistics is taking the app abroad.

And, a few weeks ago, XPO Logistics unveiled cloud-based software that enables transportation companies to track truck and rail freight in real-time. XPO Connect software will provide tracking data to better determine capacity, spot rates and load assignments. The goal of the new software is to create more efficiency in supply chains and reduce cargo jams in warehouses. XPO Logistics’ management noted that 50 merchants and 500 carriers tested XPO Connect.

In our more digital world, more and more clients want real-time information about their shipments. Consumers already have real-time tracking for their personal packages, so it’s not surprising that shipping companies want the same real-time tracking for their trucks and freight. And XPO Connect is one of the few software products out there to provide this type of data tracking.

More and more companies are turning to XPO for supply chain solutions, and this is making a big impact on the company’s bottom line. Fortunately, we don’t have to wait long until its next earnings report; XPO is scheduled to release first-quarter results on Wednesday, May 2. The Street view is for $0.51 EPS on $3.92 billion in revenue. Compared with the year ago quarter, this represents 70% earnings growth and 10.7% sales growth. I expect XPO to do even better, especially considering the company’s long-running track record of earnings surprises. So before May 2, I recommend that you pick up shares of this Moderately Aggressive stock up to $105.

SOM Technicals:

3-30-18: Closed at 101.81. Trade pressures are down into the neutral zone. Volumes are neutral. The next target up is 109.37.

4-7-18: Closed at 96.26. Trade pressures are in the neutral zone. Volumes are bearish. The next target up is 109.37.

4-14-18: Closed at 99.40. Trade pressures are still neutral. Volumes are bullish to neutral. The next target up is 109.37.

4-21-18: Closed at 104.44. Trade pressures are up. Volumes are bearish. Touched the 109.37 target and now pulling back. Support at 101.24.

4-27-18: Closed at 98.10. Trade pressures are down into the neutral zone. Volumes are bearish. The next target down is the 92.55.

5-5-18: Closed at 101.24. Trade pressures are down but rising. Volumes are now bullish. After reaching the 109.37 target pulled back to 91.64. The 109.37 is the next target up.

5-11-18: Closed at 109.07. Trade pressures are up. Volumes are bullish. the next target up is 119.00.

5-19-18: Closed at 109.50. Trade pressures are up. Volumes are neutral. The next target up is 119.00

Market Pressures_

Copper has reached the profit target and is in retracement. Gold is in a new long move up. Silver has also broken to the upside.

Crude came close to the upside target but now looks to be in a retracement move down. Natural Gas is quiet.

The Us 30 year T-Bonds are selling down in  response to the rates rising.

The US Dollar is show steady strength.

________________

S&P 500 Futures_

Monthly – In the move down from the 2662. level. Trade pressures are up but turning down. Volumes closed the month Of March as neutral. The next target down is 2304. A close above the old high of 2883 would confirm a weekly move higher.

Weekly – In the move down from the 2803 short confirmation. Trade pressures are down but turning up into the neutral zone. The next target down is 2569. A close above the 2796 would confirm a daily move higher.

Daily – Flat. Still in the move up from the 2615 long entry level. The move was stopped at the expected resistance levels and the upside 2718 profit target. Trade pressures are up, but turning down. Volumes are now bearish.

A close below 2658 would signal a retracement inside this move up. If so, the next target down is the prior downside target of 2590.

The Navellier Research stock picks are reporting earnings these next weeks and are showing early earnings increases. The Virtual Portfolio of the Navellier Top 5 is up about 8% from the 1st of the calendar year.

Market Pressures_

Copper made a move up but pulled back into the weekend before meeting the first profit target. Gold rallied into the War talk but also retreated before the weekend. Silver is looking higher. No one wants to take the weekend event risk.

Crude rallied to the expected targets. Natural gas is dormant.

The US Treasury bonds made a second move up to the prior target.

The US Dollar futures are in a slow move up. Don’t know the impact of a new Syrian front in this never ending military adventure.

_______________________

S&P 500 Futures_

Monthly – In the move down from the 2662 short confirmation level. Trade pressures are up but turned down. Volumes closed the month of March as neutral. The next target down is 2304. A close above 3103 would confirm a weekly move up.

Weekly – In the move down from the 2803 short confirmation level. Trade pressures are down. Volumes are bearish. The next target down is 2534. A close above 2786 would confirm a daily move up.

Daily – Flat. In the move up form the 2615 long entry level. Trade pressures are up. Volumes are bullish.

The next target up is 2718.

The 25×5 moving average upside resistance is at 2675. The downtrend resistance line is at 2753. So this confluence of targets and resistance lines is going to be difficult to get thru. But if is is broken to the upside, it will be earnings driven and sustainable.

The next targets down are the prior low at 2552 and the next downside target at 2457.

The Navellier portfolio begins earnings reports this next week.

Market Pressures_

Copper is in a new move up. Gold is in a pullback within a move up. Silver is consolidating with wide ranging bars.

Crude Oil is in a pullback towards support. Natural gas is in a long consolidation with a bias to the downside.

The US 30 Year Treasury bond had made a nice move up to the first profit target, now in consolidation.

The US Dollar futures are in a slow move up off the February lows.

____________________

S&P 500 Futures_

Monthly – In a move down from the 2662 short confirmation level . Trade pressures are still up but have turned down. Volumes closed the month of March as neutral. The next monthly target down is 2304. Need a close above 3103 to confirm a weekly move higher.

Weekly – In the move down from the 2803 short entry. Trade pressures are down. Volumes are bearish. The next target down is 2569, for the third time. Beyond that is the prior intraday low of 2534. Need a close above 2796 to confirm any daily move higher.

Daily – Flat. Consolidating around the 2590 downside target. Trade pressures are up into the neutral zone. Volumes are mixed bullish to bearish.

A new short cycle long entry is signaled at 2615. But given the volatility, these should only be traded intraday – very carefully.

Blustery news risk heightens the uncertainty. 1st Qtr earnings cycle begins in the next weeks and are expected to be very good by comparison. Expect continued volatility.

A close below 2552 would signal lower.

Navellier Research continues the advice to focus on good quality earnings.

(from Navellier Research, pls do your own due diligence)
https://navelliergrowth.investorplace.com/bluechip/

The following is provided by Navellier with technical comment from South Ocean Management –

ABIOMED, Inc.

ABIOMED, Inc. (ABMD) is joining my Top 5 Stocks list for the first time since being added to the Buy List in the December 2017 Issue. As a refresher, ABIOMED is the only medical devices company focused on building technologies that can replace or assist the pumping function of a failing heart. Interestingly, when ABIOMED was founded in 1981, its original mission was to develop the world’s first artificial heart. It went on to successfully do so, having treated a patient with the first totally artificial heart in 2001. But then the company undertook an effort to focus exclusively on heart recovery.

Today, ABIOMED is best known for its Impella® devices, which are the world’s smallest heart pumps. Impella is often a safe treatment option for patients with advanced heart failure that have been turned down for open heart surgery. To date, the device has treated over 50,000 patients.

According to the American College of Cardiology, heart disease accounts for about 800,000 deaths in the U.S. alone. In other words, it causes roughly one death every 40 seconds. So it’s clear that ABIOMED provides a life-saving service to tens of thousands of patients and their families. What’s great is that ABIOMED continues to hit new milestones. Most recently, the company received expanded pre-market approval from the U.S. Food and Drug Administration for Impella to be used during elective and high risk Percutaneous Coronary Intervention (PCI) procedures. This includes patients experiencing heart failure during both the last month of pregnancy and the first five months after giving birth.

Given strong demand for medical devices to treat heart disease, ABIOMED’s business is booming. For fiscal year 2018, ABIOMED is now forecasting sales of roughly $583 million, or 31% annual sales growth, up from between $565 million and $575 million, or 27% to 29% annual sales growth.

In the near-term, ABIOMED is looking for first-quarter sales of $164 million, or 31.5% annual sales growth, which is in-line with the current consensus estimate. Analysts are calling for earnings of $0.63 per share, or 90.9% annual earnings growth. Earnings per share estimates have been revised 12.5% higher in the past three months. This Conservative stock is a Strong Buy up to $313 per share.

SOM Technicals:

3-30-18: Closed at 290.99. Trade pressures are down into the neutral zone. On the 25×5 moving average as support. The next target up is 323.10.

4-7-18: Closed at 286.22. Trade pressures are neutral. Volumes are neutral. the Next target up is 323.10

4-14-18: Closed at 297.00. Trade pressures are up. Volumes are bullish. The next target up is 323.10.

4-21-18: Closed at 305.92. Trade pressures are up. Volumes are bullish. The next target up is 323.10.

IPG Photonics Corporation

IPG Photonics Corporation (IPGP) is a semiconductor company that creates high-power fiber lasers and amplifiers. We added IPG Photonics to the Buy List in the August 2017 Issue, and if you’ve been with me for a while, then you know that the company is no stranger to our Top 5 Stocks list. IPG Photonics has made impressive strides in its business and handed Wall Street a robust fourth-quarter sales and earnings report, both of which drove me to handpick IPGP for this list once again.

What I especially like about IPG Photonics is its monopoly on the market for lasers. You see, fiber lasers are more powerful, reliable and stable compared to other types of lasers. And while many people think of a red line when they hear the word “laser,” lasers are actually used in many manufacturing processes, like cutting fabric and metal. Lasers are practically a part of everything… from CD and DVD players to the equipment used for eye and cosmetic surgical procedures. So when you consider IPG Photonics’ manufacturing scale and continuous sales and earnings growth, it’s no surprise that the company boasts a 40% operating margin.

On March 7, IPGP was moved from the S&P MidCap 400 index to the S&P 500. Why this is a big deal? Well, it represents a coming of age for IPG Photonics. While its origins date back to 1991, IPG went public in 2006. And 12 years later, it’s been added to one of the most-watched indices. The company’s fundamentals also provide further confirmation of IPG Photonics’ maturation.

IPG Photonics reported a record fourth-quarter. The company’s earnings per share soared 33.8% year-over-year to $1.86, up from $1.39 in the same quarter a year ago. Sales swelled 28.9% year-over-year to $361.1 million, compared to $280.12 million in the fourth quarter of 2016. The analyst community was looking for earnings of $1.72 per share on $345.63 million in sales, so IPG Photonics posted an 8.1% earnings surprise and a 4.5% sales surprise.

And it’s looking like IPG Photonics will post healthy sales and earnings again in its first-quarter report, which is tentatively scheduled for May 18. The company is expecting sales between $330 million and $355 million, or 15% to 24% annual sales growth, and adjusted earnings per share between $1.62 and $1.87, or 17% to 36% annual earnings growth. The higher end of both estimates are slightly above analysts’ current expectations for 21.2% annual sales growth and 30.4% annual earnings growth. Add this Conservative stock up to $250 per share.

SOM Technicals:

3-30-18: Closed at 233.85. Trade pressures are down Volumes are bearish. Sitting on the 233.00 down side target. The next target down is the 200 day at 203.

4-7-18: Closed at 222.50. Trade pressures are down. volumes are bearish.

4-14-18: Closed at 230.36. Trade pressures are down but rising. Volumes are now bullish. Need to get above the 25×5 at 237.32 to get moving again.

4-21-18: Closed at 232.13. Trade pressures are up. Volumes are bullish. Must get thru the 238 resistance then the next target up is 247.00.

Northrop Grumman Corporation

I first recommended Northrop Grumman Corporation (NOC) back in March 2014, making it the oldest position on our buy list. Northrop Grumman is sort of like a wine, in that it seems to only get better with age. If you bought shares at that time, you’d be sitting on a triple-digit gain. And what I love about NOC is that it continues to break through to new highs, thanks to an extensive portfolio of abilities and technologies.

With a history colored by achievements such as the “flying wing” concept—which laid the foundation for the B-2 stealth bomber—and carrying astronauts to the moon and back, Northrop Grumman has shaped aviation history and is positioned to continue shaping its future. In fact, just last month, Northrop Grumman acquired aerospace and defense company Orbital ATK (OA) for about $7.8 billion. This deal merges two of the largest D.C.-area public companies that have some of the biggest government contracts, and more importantly, improves U.S. technology as it relates to space, missiles and munitions.

As a giant in the security industry, countries across the world look to Northrop Grumman for help. This week, the company secured a $13.8 million contract to provide program and engineering support for Japan’s E-2D Advanced Hawkeye weapon system trainer. The E-2D aircraft is seen as game changer in how the Navy will conduct battle management and control. And now Northrop is going to support Japan’s first E-2D. The fact that President Trump’s fiscal 2019 budget seeks $686 billion for defense spending doesn’t hurt the company, either. This means more missiles, combat aircraft and other tools necessary to continue modernizing the military. All of this demand is only going to support the company’s top and bottom lines going forward.

Northrop Grumman, though, already has strong fundamentals. For the fourth quarter, Northrop Grumman’s sales rose 4% year-over-year to $6.63 billion, compared to $6.40 billion in the year ago period. Adjusted earnings per share came in at $2.82. Analysts were expecting earnings of $2.74 per share on $6.35 billion in sales, so NOC posted a 2.9% earnings surprise and a 4% sales surprise.

For the company’s first quarter, the analyst community is currently forecasting 0.3% annual earnings growth and 5.4% annual sales growth. After that, though, Northrop Grumman is expected to post 18.1% annual earnings growth in the second quarter.

Northrop Grumman has rewarded shareholders for 152-straight quarters, or for more than 38 years. And it increased its dividend from the prior quarter by 10%. Most recently, Northrop Grumman paid a quarterly dividend of $1.10 per share on March 21. I recommend that you buy this Conservative stock up to $374 per share.

SOM Technicals:

3-30-18: Closed at 349.12. Trade pressures are in the neutral zone. Volumes are bullish. The next target up is 361.68.

4-7-18: Closed at 352.99. Trade pressures are in the neutral zone. Volumes are neutral.

4-14-18: Closed at 350.00. Trade pressures are up into the neutral zone. Volumes are bullish. The next target up is 361.69.

4-21-18: Closed at 355.92. Trade pressures are up. Volumes are bullish to neutral. The next target up is 361.59.

S&P Global, Inc.

S&P Global, Inc. (SPGI) returns to our Top 5 Stocks list for the second-straight month and moves up from the number-five spot in the March 2018 Issue, due in part to a smart acquisition. If you’ve kept up with my Weekly Updates, then you know that the data and analytics leader is acquiring the artificial intelligence company, Kensho Technologies, Inc., for about $550 million in a mix of cash and stock.

This is notable because it’s the biggest artificial intelligence deal in history from Wall Street and not Silicon Valley. Of course, as technology is evolving at a rapid clip, Wall Street must too, or else it will be left behind. And this includes leveraging artificial intelligence, where machines perform human-like tasks. S&P Global is hoping that with Kensho, it can create new analytical capabilities, improve user experiences and reduce costs of traditional operations. Having already taken a stake in fintech company Algomi last year, S&P Global is leading the way for Wall Street to embrace this next wave of the internet.

When you consider its expansion into fintech and the stock buybacks that I mentioned earlier, it’s no wonder that 11 out of 15 analysts rate SPGI a buy. The analyst community is anticipating that first-quarter sales will climb 5.8% year-over-year to $1.54 billion. Earnings per share are expected to jump 21.6% year-over-year to $1.97, up from $1.62 in the first quarter of 2017. In the past four quarters, the company has posted an average 12.8% earnings surprise. So, we just might see a fifth-straight quarterly earnings surprise.

I would be remiss if I didn’t note that S&P Global continues to reward its shareholders. The company paid a quarterly dividend of $0.50 per share on March 12, which represented a 22% increase over the dividend paid in the fourth quarter. SPGI has a current dividend yield of 1.0%. If you haven’t already, I recommend that you buy this Conservative stock on dips below $204 per share.

SOM Technicals:

2-25-18: Closed at 191.67. Trade pressures are up. Volumes are bullish. The next target up is 203.26.

3-2-18: Closed at 189.02. Trade pressures are up but declining. Volumes are bearish. The next target up is 203.26.

3-11-18: Closed at 194.96. Trade pressures are up but declining. Volumes are bullish. The next target up is 203.26.

3-17-18: Closed at 192.51. Trade pressures are down into the neutral zone. Volumes are neutral. Support is the 25×5 at 189.

3-23-18: Closed at 186.49. Trade pressures are down. Volumes are bearish. Has just broken the 25×5 support. The next target down is 185.18, then 177.41.

3-30-18: Closed at 191.06. Trade pressures are down. Volumes are neutral. Consolidating at the 185 target.

4-7-18: Close at 189.74. Trade pressures are in the neutral zone. Volumes are bearish. Consolidating at the 185 downside target.

4-14-18: Closed at 190.76. Trade pressures are up. Volumes are bullish. Need a close above the downtrend resistance line at 196.38.

4-21-18: Closed at 192.96. Trade pressures are up. Volumes are now bearish. Support at 190.67.

XPO Logistics, Inc.

XPO Logistics, Inc. (XPO) wraps up the Top 5 Stocks list for the first time since being added to the Buy List in February. As a refresher, XPO Logistics is a top 10 global logistics company based in Greenwich, Texas. Through its two reporting segments—Transportation and Logistics—XPO Logistics helps over 50,000 customers improve their productivity and lower costs.

Just last week, XPO Logistics announced that it would be expanding its Drive XPO mobile technology to Europe this spring. Drive XPO is a mobile app designed with carriers (such as trucking and airline companies) in mind. With the app, carriers get real-time visibility across transportation modes and carrier operations are integrated with daily productivity tools. After successfully launching Drive XPO in the U.S., XPO Logistics is taking the app abroad.

Before that, XPO Logistics unveiled WMx, a new, cloud-based mobile software platform. WMx enables fast deployment and integration of automation and robotics at a fraction of conventional start-up times and is optimized for tablets and mobile devices. Company management described the proprietary WMx platform as the future of warehouse management. Given their ability to do anything from helping an aerospace customer launch a new aircraft to supporting warehouse customers through technology, it’s no surprise that The Boeing Company (BA) recently named XPO Logistics one of its superior suppliers.

In the fourth quarter, XPO Logistics reported 13.9% annual sales growth and 87.5% annual earnings growth. The company is on deck to reveal results for the first quarter on or around May 9. Analysts are currently forecasting 10.7% annual sales growth and 80% in annual earnings growth. So this Moderately Aggressive stock remains a Strong Buy up to $110 per share.

SOM Technicals:

3-30-18: Closed at 101.81. Trade pressures are down into the neutral zone. Volumes are neutral. The next target up is 109.37.

4-7-18: Closed at 96.26. Trade pressures are in the neutral zone. Volumes are bearish. The next target up is 109.37.

4-14-18: Closed at 99.40. Trade pressures are still neutral. Volumes are bullish to neutral. The next target up is 109.37.

4-21-18: Closed at 104.44. Trade pressures are up. Volumes are bearish. Touched the 109.37 target and now pulling back. Support at 101.24.

Market Pressures_

Copper is attempting to complete the move down. Look for possible long entry. Gold and Silver react to global events and global events can drive interest rates which affect the cost of carrying gold and silver – the virtuous or vicious “circle”.

Crude Oil has made a move up and now is in a retracement. Moribund natural gas maybe be showing some signs of life.

The US 30 Year Treasury Bond is in a nice move up and has broken out of the downward sloping channel.

The US Dollar futures have shown a reversal move to the upside as well.

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S&P 500 Futures_

Monthly – The monthly close below 2662 has confirmed the weekly move down. Trade pressures are up but rolling over. Volumes closed the February month as Neutral and this March month as neutral. The next monthly target down is 2304.

Weekly – The February lows has been tested and for the moment those levels have held. Trade pressures are down. Volumes have closed as bearish. The next target down is 2379. Need a close above 2796 to confirm a Daily move up.

Daily – Flat. The 2590 downside target has been met and appears to be acting as support. Trade pressures are down but turning up. Volumes closed as bullish.

A close below 2586 would signal lower. The next target down would be 2457.

A close above 2649 would signal higher. For now, every rally is a counter trend move inside the current down trend;.

This is the end of a 4 day week in advance of the Easter 3 day long weekend. It is also the end of the quarter for the fund managers; who bill quarterly. Shorts likely did not want to have any event surprises, so closed some positions.

Navellier Research still holds fast to the bullish thesis for their buy list. 1st Qtr 2018 earnings season will begin mid April. The  Navellier Top 5 Stocks for April have some changes. The model portfolio will sell those replaced and buy the new additions.

Market Pressures_

Copper has reached the expected downside target of 2.99. Gold rallied thru our new long entry. Silver is at a new long entry.

Crude is in a long trade with tight stops. Crude is event driven, don’t stay too long. Natural gas is showing lower still.

The US 30yr Treasuries are in a retracement up from the long move down. Tight stops here also.

The US Dollar futures are under pressure. Too much talk and tariffs leading to downward revisions in the 1st Qtr GDP. Taking Trillions out of the market seems a very expensive way to get 60 billion extra in net trade from the Chinese?

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S&P 500 Futures_

Monthly – The second month of a decline. Trade pressures are up but for the first time in many months, they are turning down. Volumes closed the February month as neutral.The month is not over but the 2662 confirmation level is likely to signal a new monthly move down.If that happens, the next target down is 2304.

Weekly –  In the move down from the 2803 level. Trade pressures are down into the neutral zone. Volumes are bearish. The next target down is 2569. A close above 2796 would confirm a Daily move up.

Daily – Flat. In the move down from the 2723 short entry. Trade pressures are down. Volumes are bearish.

The next target down is 2590, then 2457.

A close above 2649, the Friday open, could start a new move up.

Navellier Research is still bullish on his selections and expects the 1st Qtr earnings report season to right the ship. That gives a few weeks of volatility before that happens; need to see some higher lows to be properly encouraged.

Market Pressures_

Copper is consolidating in a downtrend. Gold has down ward pressures. Silver is testing recent lows.

Crude is mixed with a new upward bias. Natural gas is looking lower.

The US 30 year Treasury Bond is in the second leg up of a new move up.

The US Dollar Futures are still basing with reasonable volatility.

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S&P 500 Futures_

Monthly – The 2766 target level was met in January and has produced consolidation at that level. Trade pressures are up. Volumes closed the month of February as Neutral. The next target up is 3383. A close below the 2662 level would confirm any Weekly move lower.

Weekly – Five weeks off the lows of early February and now testing a new weekly long entry at 2796. Trade pressures are in the neutral zone but rising. Volumes are neutral. Support is at 2676, the 25×5 moving average.

Daily – Flat. In a move up from the 2713 level. Trade pressures are down into the neutral zone. Volumes are bullish.

The week traded up to the resistance confluence of the downtrend resistance line and the two cycle targets between 2812 and 2817. This stopped the move.

The next target up is 2812.

A close below 2723 would signal lower. Support is at 2728, the 25×5 moving average.

The end of quarter window dressing could roil these markets. Navellier thinks his buy list with superior fundamentals will benefit from these realignments.

Market Pressures_

Copper has been trending down, but the jobs numbers accompanied by low inflation indications saw a sharp move higher. Gold indicates higher. Silver is not participating.

Crude oil was in a short with tight stops. Natural gas is flat but in a slight trend upwards.

The US 30 year Treasuries tried to move up in price but stalled at the 25×5 moving average.

The US Dollar Futures are slowly moving higher.

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S&P 500 Futures_

Monthly – The 2008-2009 move down took 15 months to complete. Ensuing corrections have lasted 4-7 months. We are now in a second month following the sharp move down last month. Trade pressures are up. Volumes closed the month of February as Bullish. The next target up is 3383. A close below 2657 would confirm a weekly move lower.

Weekly – A rally back to recovery highs. Trade pressures are down but turning up into the neutral zone. Volumes are neutral. 2569 is the next target lower. A close above 2791 would signal a new leg up. The next target up would be 2927.

Daily – Flat. The short entry at 2707 is being tested, now above the 25×5 moving average; a bullish signal. Trade pressures are up. Volumes decidedly bullish. If the 2789 pivot holds, the 2573 is the next target down. The next target up is 2812, which is also the downtrend resistance line and the previous high pivot; so a confluence of of targets that would likely act as resistance.

A break thru these multiple levels would signal upside strength.

The Navellier Top 5 performed well this week.