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McDonald's. It's Difficult To Fight Strong Stocks.

Here is McDonalds five day chart at the close on Wednesday. Now here is it's three month chart. Now consider this. In two days the stock is up about twelve dollars. I often talk about Wednesdays being the one day in the week the markets can do reverals. Today the DJIA was up over four hundred points and McDonalds was down 60 cents. It dipped on the opening and came back a bit and then selling pressure came into the stock again on the closing. I personally hate McDonald's food. The internet has tens of Youtube videos saying their fries are poisonous. Yet I get it. But think about this. Whenever a new residential subdivision goes in anywhere in North America there is room for another one of their restaurants to go in. They just pop up and everyone knows what they are. Here now is a snippet I posted in a past McDonald's blog. After a lackluster trading session today McDonald's could drop in the next two days or at least on a Thursday afternoon sell off. Yet nothing m...
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Caterpillar Calls and Earning Reports

So the market tanked last Friday and tanked again on Monday to then rebounded on Tuesday. They are still down from where they were one week ago. Caterpillar released their second quarter earning's report this morning. Readers of my past blogs might know that the guidance offered for this most recent three month period of time was not particularly stellar. What I am referring to is the guidance offered after the release of companies first quarter earnings report earlier this year. Here now is the companies current financial highlights and two articles by writers with deeper insights than I have. I noted in my most previous blog how Deere, Boeing and Caterpillar have all tanked in the last week.
Did I know this was going to happen? Well commodity prices are not particluarly strong which indirectly affects their profit margins and rebuilding countries like Ukraine is not yet in the near term cards. Mentioned was the fact that sales to construction and resource industries declined. We kind of expected that. The big market crash last Friday coincided with the timing of Caterpillar's earning release. So many factors were in play. Here now is it's five day chart.
Now here is how one series of it's Calls traded on the day. What a nice bounce these options had.
Look a how low the trading volumes are. After the markets recent grubbing, and the fact that's it's summertime, no one seems to be in the mood to be buying one week or less Calls.

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