Monday, June 1, 2015

Trade of the Day: Buyers Targeting QCOM Stock

QUALCOMM, Inc. (NASDAQ:QCOM) — Buyers appear to be targeting QCOM stock. According to Benzinga, on Wednesday, the QCOM July $72.50 calls traded 2,960 contracts above the ask price of $0.88, and rumors circulated of a possible deal with Ambarella Inc (NASDAQ:AMBA).
I must emphasize that this is only a rumor and should not be the sole reason for buying shares, but fundamentals and technicals are also encouraging for a short-term trade. (more)

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Stocks To Watch: ZIOP, MSFT, ACHN, CTIC, OAS


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The daily technical chart pattern of ZIOPHARM Oncology Inc. (NASDAQ:ZIOP) has been consolidating within a falling wedge pattern that has bullish implications. A breakout is needed to end this large consolidation and resume the uptrend. At this point Im inclined to mark a key resistance zone around 10-10.2. A move above this area, would break the upper trendline and the resistance zone. If a breakout occurs, we could see an acceleration of the bullish momentum and move toward the 11.50-12.13 area. Daily technical indicators are looking bullish, MACD and RSI are showing upward momentum. On watch.


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Microsoft Corporation (NASDAQ:MSFT) has been consolidating in a bullish pennant over the last five weeks. Play the break of the pattern.

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Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN) has gained momentum recently and the stock rebounded about 10% in the past couple of trading sessions on increased volume. On Friday, the stock closed near its critical breakout point of $10, which may be broken out next week. Looking at the daily technical chart the MACD momentum is rising and RSI is on a strong uptrend, which when combined with the strengthening MACD could spell a strong move for the stock. If it crosses the $10 level, the stock has potential to gain 10-12%.

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CTI BioPharma Corp (NASDAQ:CTIC) could be in the early stages of a technical breakout. Technicals are showing bullish signals supported by rising MACD, ADX and RSI on the daily charts. For now, expect a run up to next resistance area around $2. If the stock is able to cross it and sustain above it, then it might go to $2.40. Keep it on your watch list going forward.

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I continue to support the idea of a significant rally on shares of Oasis Petroleum Inc. (NYSE:OAS), probably even above the February highs. The bulls remain in control as long as it continues consolidating its recent move. We still need to see a break and close above 17.83 or 100EMA to confirm a continuation to the upside with a next target in the 20 area. Only a break back below the 15 would invalidate this bullish outlook.
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PPG Industries, Inc. (NYSE: PPG)

PPG Industries, Inc. manufactures and distributes coatings, specialty materials, and glass products. The company’s Performance Coatings segment provides coatings products for automotive and commercial transport/fleet repair and refurbishing; light industrial and specialty coatings for signs; sealants, coatings, maintenance cleaners, and transparencies for commercial, military, regional jet and general aviation aircraft, and transparent armor for specialty applications; and chemical management services. Its Industrial Coatings segment provides adhesives and sealants for the automotive industry, and metal pretreatments and related chemicals for industrial and automotive applications; precipitated silicas for tire, battery separator, and other markets. The company’s Glass segment produces flat glass and fiber glass for commercial and residential construction, and wind energy, energy infrastructure, transportation, and electronics industries. PPG Industries, Inc. sells its products through owned stores, home centers, paint dealers, concessionaires, other consumer retail outlets, independent distributors, and directly to customers. The company was founded in 1883 and is headquartered in Pittsburgh, Pennsylvania.
Take a look at the 1-year chart of PPG (NYSE: PPG) below with added notations:
1-year chart of PPG (NYSE: PPG)
After a strong rally from October until the end of December, PPG has been trading mostly sideways over the last 5 months. During the last 2 months of that 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.
PPG’s rectangle pattern has formed a resistance at $232.50 (red), and a $220 support (green) area. At some point the stock will have to break one of the two levels.

The Tale of the Tape: PPG is trading within a rectangle pattern. The possible long positions on the stock would be either on a pullback to $220 or on a breakout above $232.50. The ideal short opportunity would be on a break below $220.
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My Million-Dollar Tech Portfolio: RGEN, AMBA, CLGX, FPX, BABA, XLK, CRAY

When I spoke with my Strategic Tech Investor readers last week, I illustrated how one of our Million-Dollar Tech Portfolio stocks had soared 53% in just a little over two months.
But Repligen Corp. (Nasdaq: RGEN) isn’t the only big winner. In fact, six of our seven investments in the Million-Dollar Tech Portfolio are up — and the other is just a hair below breakeven.  (more)

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US Weekly Economic Calendar

time (et) report period ACTUAL CONSENSUS
forecast
previous
MONDAY, JUNE 1
8:30 am Personal income April   0.3% 0.0%
8:30 am Consumer spending April   0.2% 0.4%
8:30 am Core inflation April   0.2% 0.1%
10 am ISM May   51.8% 51.5%
10 am Construction spending April   0.7% -0.6%
TUESDAY,  June 2
10 am Factory orders April   -0.1% 2.1%
TBA Motor vehicle sales May   17.2 mln 16.5 mln
WEDNESDAY, JUNE 3
8:30 am Trade deficit April   -$43.1 bln -$51.4 bln
10 am ISM nonmanufacturing May   57.3% 57.8%
THURSDAY, JUNE 4
8:30 am Weekly jobless claims May 30
285,000 282,000
8:30 am Productivity 1Q   -3.0% -1.9%
8:30 am Unit labor costs 1Q   6.0% 5.0%
FRIDAY, JUNE 5
8:30 am Nonfarm payrolls May
210,000 223,000
8:30 am Unemployment rate May   5.4% 5.4%
8:30 am Average hourly earnings May
0.2% 0.1%
 
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