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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