Monday, July 6, 2015

Stocks To Watch: KITE, ZIOP, TWTR, EBAY



Kite Pharma Inc (NASDAQ:KITE) on my swing long list. The stock finally closed the week above the downtrend line that had been in place since January. Good upside volume on the daily chart. Breakout above 66.50 is expected to trigger fresh uptrend and immediate resistance at 77.


ZIOPHARM Oncology Inc. (NASDAQ:ZIOP) continued its sideways movement this week and tested the bottom of 11.10 levels again. Now, on the downside 11 is immediate support zone for next week. The daily technical indicators are displaying negative divergence, indicating that the medium-term trend is under threat. The current uptrend will continue until the stock is trading above trend reversal level of 10.74.


Twitter Inc (NYSE:TWTR) looks to be setting up for an upside move, as the price has held up well the past few sessions.I remain short-term bullish but I hesitate to suggest new positions with the market looking vulnerable. At this point, and given the current stock levels, it is important for it to break 36.42 level soon. The trend is expected to be up till trend reversal level of 35 is intact on closing basis. Plus, the stock closed the week above its 9 & 13 exp moving averages, giving it even a more bullish set up.


eBay Inc (NASDAQ:EBAY) Rally continued for 3rd consecutive session. The stock is showing signs of an upcoming breakout as price action and volume are making some bull signals. Waiting for a break above the 62.39 for a long position. Short-term price target after the break is 63.30.


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Sanderson Farms, Inc. (NASDAQ: SAFM)

Sanderson Farms, Inc., an integrated poultry processing company, produces, processes, markets, and distributes fresh, frozen, and prepared chicken products in the United States. The company sells ice pack, chill pack, bulk pack, and frozen chicken in whole, cut-up, and boneless form primarily under the Sanderson Farms brand name to retailers, distributors, and casual dining operators in the southeastern, southwestern, northeastern, and western United States, as well as to customers who resell frozen chicken in the export markets. Its prepared chicken product line includes institutional and consumer packaged partially cooked or marinated chicken items for distributors and food service establishments.
Take a look at the 1-year chart of Sanderson (NASDAQ: SAFM) below with my added notations:
1-year chart of Sanderson (NASDAQ: SAFM)
SAMF had formed a key support level at $75.00 (green) over the past 5 months. In addition, the stock is declining against a short-term, down trending resistance level (red). These two levels combined had SAFM stuck within a common chart pattern known as a descending triangle. Eventually, the stock had to break one of those two levels, and yesterday SAFM broke through the support.

The Tale of the Tape: SAFM broke its $75.00 triangle support. A short trade could be made at or near $75.00. A break back above the prior support could be an opportunity to enter a long trade.
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Baker Hughes (NYSE: BHI) Could Plunge in the Next Few Weeks

It takes a lot to turn a bear market around, but for oil services stocks it seemed that the requirements for such a move were starting to gel in May.
The PHLX Oil Service Sector Index (OSX) had just made a tentative breakout from a bottoming pattern that was a cross between a double-bottom and an inverted head-and-shoulders. It even moved above its 50-day moving average, which itself was rising.
Paradoxically, OSX ran out of fuel shortly thereafter. Momentum dried up and money started to flow back out of the sector once again. It took a while, but its slow fade finally negated any form of a breakout in early June by dipping back under its 50-day moving average and former breakout levels.  (more)

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US Weekly Economic Calendar

time (et) report period ACTUAL CONSENSUS
forecast
previous
MONDAY, JULY 6
10 am ISM nonmanufacturing June   55.0% 55.7%
TUESDAY,  JULY 7
8:30 am Trade deficit May   -$42.1 bln -$40.9 bln
10 am Job openings May   -- 5.4 mln
3 pm Consumer credit May   -- $21 bln
WEDNESDAY, JULY 8
2 pm FOMC minutes        
THURSDAY, JULY 9
8:30 am Weekly jobless claims July 4
N/A N/A
FRIDAY, JULY 10
10 am Wholesale inventories May
-- 0.4%
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Saturday, July 4, 2015

Greek banks prepare plan to raid deposits to avert collapse

Greek banks are preparing contingency plans for a possible “bail-in” of depositors amid fears the country is heading for financial collapse, bankers and businesspeople with knowledge of the measures said on Friday.
The plans, which call for a “haircut” of at least 30 per cent on deposits above €8,000, sketch out an increasingly likely scenario for at least one bank, the sources said.
A Greek bail-in could resemble the rescue plan agreed by Cyprus in 2013, when customers’ funds were seized to shore up the banks, with a haircut imposed on uninsured deposits over €100,000.  (more)

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Alasdair Macleod There Will Be a NEW WORLD Monday Morning!

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China hunts for 'manipulators' as stocks tumble

Chinese stocks tumbled again on Friday, taking the week's losses to more than 10 percent, as the securities regulator said it was investigating suspected market manipulation and announced a slew of measures aimed at heading off a full-blown crash.
After a slump of nearly 30 percent in Chinese stocks since mid-June, the China Securities Regulatory Commission (CSRC) has set up a team to look at "clues of illegal manipulation across markets".
After market close, a CSRC spokesman said China would cut initial public offerings and capital raisings and support long-term investors entering the market to help stabilize prices.  (more)

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Adrian Day’s Embarrassment of Riches: Gold Companies Cheap to Buy but Not for Long

by Kevin Michael Grace
The Gold Report

Fund Manager Adrian Day believes that the U.S. dollar is fundamentally overvalued and we can expect a devaluation at some point. This is good news for the price of gold. In this interview with The Gold Report, Day adds the even-better news for investors in gold equities is that so many good shares now sell for so little, and he discusses several companies that won’t remain bargains for long.
The Gold Report: Despite the lack of an economic recovery and the reality of ever-increasing debt, the U.S. dollar and the equity markets remain strong, while gold (as denominated in U.S. funds) remains weak. Do you expect these conditions to change?
Adrian Day: Yes, absolutely. The strong dollar and equity markets are two of the main reasons why gold has been down over the last 18 months. The third reason is anticipated higher interest rates.
Continue Reading at TheAuReport.com…
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JP Morgan private banker: “We can’t make money anymore…”

Yesterday over coffee, a friend of mine leaked the news that JP Morgan’s private banking division here in Singapore is going to start charging negative interest rates.
I almost fell out of my chair.
He’s a successful hedge fund manager and one of their best customers. So when he received the notice, he rang up his private banker and demanded to know why. (more)

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Friday, July 3, 2015

3 Dow Jones Stocks Looking for Comebacks: HPQ, AA, T

Since the advent of equity trading, investors have always tried to look for an edge in the markets, no matter how slight or seemingly spurious. It may surprise some investors to learn that the incomparable Charles Dow — whose innovative market research inspired the creation of the Dow Jones Industrial Average — originated the thesis that forms the backbone of the modern discipline of technical analysis.

The godfather of the markets would undoubtedly be amused that the entrance and particularly the exit of companies from the venerable Dow Jones index would become its own contrarian indicator.

A relatively new phenomenon labeled by some experts of the markets as the “index effect,” it proposes that the stock getting the boot from a major index — such as the Dow Jones — will eventually find greener pastures, many of them sooner rather than later. (more)

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Canadian Dollar weakening as U.S. interest rates rise: Poll

The Canadian dollar is likely to fall further in the coming months, hit by both a weak domestic economic outlook and an anticipated rise in interest rates in the United States, a Reuters poll showed.
Oil prices are also expected to remain weak for the rest of the year amid a persisting global supply glut, and is likely to continue to weigh on the commodity-linked loonie.
Still, analysts expect the currency will not fall as much as it did in March, when it hit its lowest levels since early 2009.  (more)

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Chart of the Day Alder Biopharmaceuticals (ALDR)

The Chart of the Day belongs to Alder Biopharmaceuticals (ALDR).  I found the bio medical stock when I used Barchart to sort the All Time High list for the stocks with the highest technical buy signals then used the Flipchart feature to review the charts,  Since the Trend Spotter signaled a buy on 5/6 the stock gained 88.16%.

Alder Biopharmaceuticals Inc. is a clinical-stage biopharmaceutical company. It discovers, develops and seeks to commercialize therapeutic antibodies. It is developing monoclonal antibodies comprising ALD403, for the prevention of migraine; and Clazakizumab, in the treatment of rheumatoid arthritis and psoriatic arthritis. Alder Biopharmaceuticals Inc. is headquartered in Bothell, Washington.


The status of Barchart's Opinion trading systems are listed below.  Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. 


technical indicators:
  • 100% Barchart technical buy signals
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 10 new highs and up 22.44% in the last month
  • Relative Strength Index 68.80%
  • Barchart computes a technical support level at 42.61
  • Recently traded at 52.85 with a 50 day moving average of 38.77
Fundamental factors:
  • Market Cap $1.95 billion
  • Revenue expected to decrease 98.10% this year but increase again by 1,367.30% next year
  • Earnings estimated to decrease by 643.30% this year and decrease again by an additional 14.10% next year
  • Despite this poor projections Wall Street analysts issued 2 strong buy and 1 buy recommendation.
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Thursday, July 2, 2015

Stocks To Watch: JUNO, MU, OREX


Juno Therapeutics Inc (NASDAQ:JUNO) starting to get some momo once again on 30m chart. The stock showed buying strength all day. The 55-55.38 area is a critical resistance region that can determine overall bias for the stock in short-term. Above this level could test 60 next. Note also that the MACD is about to make a bullish cross. On watch.


Micron Technology, Inc. (NASDAQ:MU) There was an unusually high call options activity today (strike $20 JAN2017). I believe this could signal a bottom. On the hourly time frame, technical indicators are giving some positive divergences. As noted yesterday, the bounce could start at any time.


Orexigen Therapeutics, Inc.(NASDAQ:OREX) is looking good to me. I am very pleased about how the stock has pulled back to its EMA13 after its large move on Monday. For the coming days, a breakout above the 5.19 level would signal the start of a new uptrend that could potentially test the EMA200 around the 5.80 area.

McDonald’s Corporation (NYSE: MCD)

McDonald’s Corporation operates and franchises McDonald’s restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America. The company’s restaurants offer various food products, soft drinks, coffee, and other beverages. As of December 31, 2014, it operated 36,258 restaurants, including 29,544 franchised restaurants comprising 20,774 franchised to conventional franchisees, 5,228 licensed to developmental licensees, and 3,542 licensed to foreign affiliates; and 6,714 company-operated restaurants.
Take a look at the 1-year chart of McDonald’s (NYSE: MCD) below with added notations:
1-year chart of McDonald's (NYSE: MCD)
After rallying in January and February, MCD has been trading mostly sideways since the March 1st peak. During the sideways move the stock has formed a common pattern known as a rectangle. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern.
MCD’s rectangle pattern has formed a resistance at $100 (red) and a $94 support (green). At some point the stock will have to break one of the two levels.

The Tale of the Tape: MCD is trading within a rectangle pattern. The possible long positions on the stock would be either on a pullback to $94 or on a breakout above $100. The ideal short opportunity would be on a break below $94.
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Trade of the Day: Buy Apple Stock AAPL

Apple Inc. (AAPL) — The company’s high-tech hardware, including the iPhone, iPad and Mac computers, make it one of the most well-known brands in the world. It is also a leader in customer satisfaction.
Capital IQ expects profits to be enhanced by increased volumes, more common components and an increased focus on software and services. Its analysts believe Apple’s “superior ecosystem” and new product launches will keep iPhone customer retention rates high. While it’s still early, they predict the company’s latest gadget, the Apple Watch, will be a success.
Capital IQ estimates earnings of $8.95 per share for fiscal year 2015 (ending in September), up from $6.45 last year, and $9.54 in FY 2016. Its analysts have a 12-month target of $150 on AAPL stock.
Free cash flow generation is a positive, and the company’s massive cash position of $194 billion can be used for stock repurchases, dividends and acquisitions.
Following a run from about $80 in April 2014 to above $134 in April 2015, AAPL stock has been consolidating in a rectangle with resistance at roughly $135 and support at its May low of $123.36. And under that support line is a trading range of support.
Sellers have dominated since March, but this high-quality technology stock is a traditional target for institutional buyers.
Since the current market crisis has little to do with Apple’s success, I believe it is time for traders to step up and enter orders to buy AAPL stock under $122 for a trade to $150 in four months. With a P/E ratio of 14 times estimated fiscal 2015 earnings, AAPL stock is also suitable for long-term investors who wish to hold shares for an indefinite period of time.

Wednesday, July 1, 2015

Crude Oil Weakness is Not Gold Friendly

by Dan Norcini
Trader Dan

Amidst all the talk about “Grexit” ( are the rest of the readers as sick of hearing about this as I am at this point?), one thing being overlooked, especially by those who keep calling for some sort of rip roaring surge higher in gold and silver, is the fact that crude oil is weakening.
In short, with many looking at the situation in Greece as contributing to a hit on economic growth, and with the fact that China is struggling, crude oil is moving lower as traders are concerned over a SLOWDOWN IN DEMAND.
Continue Reading at TraderDan.com…
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ConocoPhillips (NYSE: COP)

ConocoPhillips explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids worldwide. Its portfolio includes shale and oil sands assets; lower-risk legacy assets in North America, Europe, Asia, and Australia; various international developments; and exploration prospects. ConocoPhillips was founded in 1917 and is headquartered in Houston, Texas.
Take a look at the 1-year chart of Conoco (NYSE: COP) with the added notations:
1-year chart of Conoco (NYSE: COP)
COP declined into December of last year. When the stock finally bottomed, COP ended up finding support at $60.00 (green) over the next 7 months. Now that the stock appears to be falling back down to that support level again, traders should be able to expect some sort of bounce. However, if the $6o.00 support were to break, lower prices should follow.

The Tale of the Tape: COP has an important level of support at $60.00. A trader could enter a long position at $60.00 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.
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With Market Closed, Trading Greek ETF GREK Is Gamble, Guessing Game

“The ETF can’t be more liquid than the underlying, and we know the underlying can be become quite illiquid” – Howard Marks
There’s been quite a bit of spirited discussion this year about whether ETFs provide liquidity. The proliferation of exchange traded bond vehicles and the concurrent decline in dealer inventories has led some to question whether investors are being lulled to sleep by so-called “phantom liquidity.”
Barclays took a close look at the issue recently and discovered that since 2009, the “net” portion of gross bond ETF trade volumes had declined from over 20% to just 12%, which the bank cites as evidence that ETFs are adding liquidity to the market.
But this could simply reflect the fact that volumes for ETFs that track assets like junk bonds have skyrocketed over the same period, with low yields fueling both the supply and demand side of the equation and thereby increasing the likelihood that flows will be diversifiable (versus unidirectional).

READ MORE
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Tuesday, June 30, 2015

Commercial Metals Company (NYSE: CMC)

Commercial Metals Company manufactures, recycles, and markets steel and metal products, and related materials and services in the United States and internationally. The Americas Recycling segment processes scrap metals for use as a raw material by manufacturers of new metal products. The Americas Mills segment operates 5 steel mills producing reinforcing bars, angles, flats, rounds, small beams, fence-post sections, and other shapes. The Americas Fabrication segment operates fence post manufacturing plants, construction-related product facilities, and plants that bend, weld, cut, and fabricate steel. The International Mill segment engages in mill, recycling, and fabrication operations through the operation of two rolling minimills that produce reinforcing bar (rebar) and merchant products. The International Marketing and Distribution segment processes, sells, and distributes steel products, ferrous and nonferrous metals, and other industrial products.
Take a look at the 1-year chart of Commercial Metals (NYSE: CMC) below with my added notations:
1-year chart of Commercial Metals (NYSE: CMC)
Starting in September, CMC declined into January, and from there the stock started a 5-month rally. During the decline, and subsequent rally, CMC created a very clear level of resistance at $17 (green). A break above that $17 level should mean higher prices for the stock, and on Friday CMC broke that level. And for confirmation, the stock broke out on a major increase in volume.

The Tale of the Tape: CMC broke through its key level of resistance at $17. A long trade could be entered on a pull back down to that level. However, a break back below $17 could negate the forecast for a higher move and would be an opportunity to get short the stock.
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Ford Motor Company (NYSE: F) 114% Profit on a 6.4% Move

Carmakers reported surprisingly strong U.S. light-vehicle sales in May with a seasonally adjusted annualized rate of 17.71 million units, the highest since 2005. Aided by five weekends, including the usual Memorial Day blowouts, daily sales of 62,558 units were 5.5% higher than the same month last year.

Besides great weather for car shopping, manufacturers have benefited lately from stronger employment, low gasoline prices and increasing credit availability.

But you wouldn't know it to look at their stock prices. (more)

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Buy These 3 Dips as the Market Slips: Purefunds ISE Cyber Security ETF (HACK), SPDR S&P Bank ETF (KBE), Powershares QQQ Trust (QQQ)

The speculative nature of short selling suggests that the shorts were probably prepping for a Greece-influenced selloff weeks ago. The most recent short interest data indicates this is the case, as a few of the widely traded index ETFs saw larger than normal increases in short positions.

Knowing where the short sellers have increased their positions can be a key component of making the right buys on major corrections like the one we’re seeing today, courtesy of Greece.
The mechanics are simple: If short sellers are increasing their positions ahead of a pullback, it means the positions are likely to have been “presold” — thus, there are likely to be fewer sellers in the market on a heavily shorted position. (more)

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Monday, June 29, 2015

Stocks To Watch: NTRS, GIGA, MSFT, WBAI


Northern Trust Corporation (NASDAQ:NTRS) is butting up against 78.88 resistance, which is its all-time high. A break through this key resistance level could lead to $80-80.5, projected by the upper channel line. Thie price has been in an orderly bullish up-channel since early Frebruary. Worth watching for a breakout.


It looks like Giga-tronics, Incorporated (NASDAQ:GIGA) is starting to turn back up and indicators are giving the first bullish signs. On Friday it closed just slightly below its 50-day EMA, which if broken could accelerate the stock toward its June highs around the 2.20 area. A volatility squeeze seems eminent. You want to watch the stock closely as GIGA can move quickly and you want to be ready for this move once it happens.


Microsoft Corporation (NASDAQ:MSFT) after topping in April, the stock has been in decline, making new lower lows and lower highs.The stock has a strong support at about $45 and the 100-day EMA is being defended as well. Ñext week the Bulls need to hold price above this key level on daily closing basis or the Bears will likely keep pressing for the gap fill. Keep the stock on your trading screen for Monday.


Here's a potential breakdown play - 500 dot com Ltd (NYSE:WBAI). Daily technical chart shows a rising wedge pattern with a negative MACD divergence implying that a trend reversal is on the cards.

Canadian Dollar overvalued by 10%, dragging on Canadian growth: CIBC

CIBC World Markets says the loonie has been overvalued by 10 per cent since the recession, which has saddled Canadians with the equivalent of a 90 basis point higher interest rate from the Bank of Canada.

“Oil’s tumble has brought the Canadian dollar down with it,” said Nick Exarhos and Avery Shenfeld, economists at CIBC World Markets. “But our currency is still richer than it may look.”

The loonie has recently been trading at 81 cents against the U.S. dollar, and is down some 6 per cent against the greenback so far this year. (more)

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Visa Inc (NYSE: V)

Visa Inc., a payments technology company, operates as a retail electronic payments network worldwide. The company facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. It owns and operates VisaNet that is involved in the authorization, clearing, and settlement of payment transactions; and provision of fraud protection for account holders and assured payment for merchants. The company also offers a range of issuer processing services for participating issuers of Visa debit, prepaid, and ATM payment products. In addition, it provides electronic payment, risk management, and payment security solutions to online merchants; digital goods transactions services in online games, digital media, and social networks; and mobile financial services for mobile network operators and financial institutions in developing economies.
Take a look at the 1-year chart of Visa (NYSE: V) below with my added notations:
1-year chart of Visa (NYSE: V)
V has created a couple of important price levels to watch. First off, the stock has formed a relatively clear resistance at $70 (red), which would also be a 52-week high breakout if V could manage to move above it. In addition, the stock is climbing a short term, up-trending support level (green) over the last 5 months. These two levels combined have V stuck within a common chart pattern known as an ascending triangle. Eventually, V will have to break one of those (2) levels.

The Tale of the Tape: V has an up trending support and a 52-week resistance level to watch. A long trade could be made on a pullback to the support, or on a break above $70. A break below the up trending support could be an opportunity to enter a short trade.
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The Chinese Stock Bubble Bursts: $SSEC

When financial authorities are in full-blown panic, they cut rates.
Take a quick glance at this weekly chart of the Shanghai stock market:
1. Uptrend broken: check
2. MACD rolled over into a sell signal: check
3. Stochastic breaks down: check
Any questions on what's happening to the Chinese stock market bubble?
Those still entertaining hopes the bubble hasn't burst might want to ponder the frantic flailings of Chinese authorities as A Desperate China Cuts Key Policy Rates.
When financial authorities are in full-blown panic, they cut rates. When financial authorities are in full-blown panic, they deny being in a panic, which proves they are in a full-blown panic.
A reasonable technical target is the 200-week moving average, roughly 50% of the recent high. "Impossible," say recent buyers of Chinese stocks. Yes, of course it is. The authorities will never let the market decline by 50%. As always, this time it's different.
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US Weekly Economic Calendar

time (et) report period ACTUAL CONSENSUS
forecast
previous
MONDAY, JUNE 29
10 am Pending home sales May   -- 3.4%
TUESDAY,  JUNE 30
9 am Case-Shiller home price index April   --  
9:45 am Chicago PMI June   -- 46.2
10 am Consumer confidence June   97.4 95.4
WEDNESDAY, JULY 1
8:15 am ADP employment report June   -- 201,000
9:45 am Markit PMI June   -- 54.0%
10 am ISM June   53.0% 52.8%
10 am Construction spending May   0.6% 2.2%
TBA Motor vehicle sales June   17.2 mln 17.8 mln
THURSDAY, JULY 2
8:30 am Weekly jobless claims June 27
273,000 271,000
8:30 am Nonfarm payrolls June   230,000 280,000
8:30 am Unemployment rate June   5.4% 5.5%
8:30 am Average hourly earnings June   0.2% 0.3%
10 am Factory orders May   -0.2% -0.4%
FRIDAY, JULY 3
  None scheduled
Independence Day
 
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Saturday, June 27, 2015

Joy Global Inc. (NYSE: JOY)

Joy Global Inc. manufactures and services mining equipment for the extraction of coal, copper, iron ore, oil sands, gold, and other minerals. The Underground Mining Machinery segment produces armored face conveyors, battery haulers, continuous chain haulage systems, continuous miners, conveyor systems, feeder breakers, flexible conveyor trains, hard rock mining products, high angle conveyors, long wall shearers, powered roof supports, road headers, roof bolters, and shuttle cars. The Surface Mining Equipment segment produces blasthole drills, conveyor systems, electric mining shovels, feeder breakers, high angle conveyors, walking draglines, and wheel loaders. The company sells its products and services directly to mining companies through a network of sales and marketing personnel worldwide. Joy Global Inc. was founded in 1884 and is headquartered in Milwaukee, Wisconsin.
Take a look at the 1-year chart of Joy (NYSE: JOY) with the added notations:
1-year chart of Joy (NYSE: JOY)
JOY was in a solid downtrend from August of last year until March of this year. After the stock finally bottomed, JOY ended up finding repeated support at $38.00 (green) over the following 4 months. Now that the stock is at that support level again, traders should be able to expect some sort of bounce, most likely back up to the $41 resistance (red). However, if the $38.00 support were to break, lower prices should follow.

The Tale of the Tape: JOY has an important level of support at $38.00. A trader could enter a long position at $38.00 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.
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Interest Rates $TLT , Apple $AAPL and Wheat




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Chart of the Day: Ashbury Automotive Group (ABG)



The Chart of the Day goes to the Ashbury Automotive Group (ABG). I found the automotive and truck dealership stock by sorting today's All Time High list for the stocks with the highest technical buy signals, then used the Flipchart feature to review the charts. Since the Trend Spotter signaled a buy on 5/18 the stock gained 6.99%.

Asbury Automotive Group is one of the largest automotive retailers in the United States. They sell, finance and service a diverse range of foreign and domestic automobile brands.
The status of Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. 


technical indicators:
 100% Barchart technical buy signals
 Trend Spotter buy signal
 Above its 20, 50 and 100 day moving averages
 10 new highs and up 8.21% in the last month
 Relative Strength Index 70.61%
 Barchart computes a technical support level at 91.46
 Recently traded at 92.87 with a 50 day moving average of 86.97

Fundamental factors:
 Market Cap $ 2.53 billion
 P/E 19.86
 Revenue expected to grow 10.70% this year and another 5.90% next year
 Earnings estimated to increase 25.20% this year, an additional 11.00% next year and continue to increase at an annual rate of 16.55% for the next 5 years
 Wall Street analysts issued 2 strong buy, 2 buy, 4 hold, 1 under perform and a sell recommendation on the stock
The 50-100 Day MACD Oscillator has been a reliable technical trading strategy and should continue to be used for entry and exit points on this stock.

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How High Are Corn Prices Going?

Corn futures in the December contract are sharply higher up 4 out of the last 5 trading sessions settling last Friday at 3.68 a bushel while currently trading at 4.02 rallying about $.35 on massive flooding in the Midwestern part of the United States causing production concerns sending prices that we’ve not seen since April 8th hitting a 10 week high.

Corn futures are trading above their 20 and 100 day moving average forming a triple bottom in Monday’s trade around the 3.65 level, however I’m still sitting on the sidelines as the chart structure is absolutely horrific at the current time as the 10 day low is almost $.40 away which does not meet my criteria to enter, however I’m certainly not recommending any type of short position as that would be countertrend trading.

Traders are awaiting next Tuesday’s USDA acres report which will show estimates lowering uncertainty in this market because at the current time estimates are around 89 million acres but nobody really knows what the report will state due to the wet conditions especially in the state of Iowa so expect high volatility next week.  Tuesday will give us some type of estimate of what production could be and if you are a farmer as I’ve talked about in previous blogs if prices were 4.25/4.50 I would definitely take advantage of that situation and sell your cash crop due to the fact that carryover levels are extremely high as there’s no supply problems despite this weather scare.

As I write this article in central Illinois the corn crop here is outstanding and is already about 4 feet tall green and lush so this is only affecting certain areas of the Midwest but as a speculator sit on the sidelines and wait for better chart structure to develop. TREND: HIGHER--CHART STRUCTURE: POOR

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