Friday, February 21, 2014

Ciena Corporation (NYSE: CIEN)

Ciena Corporation provides communications networking equipment, software, and services that support the transport, switching, aggregation, and management of voice, video, and data traffic worldwide. The company operates through Converged Packet Optical, Packet Networking, Optical Transport, and Software and Services segments. The Converged Packet Optical segment offers networking solutions optimized for the convergence of coherent optical transport, OTN switching, and packet switching. The Packet Networking segment principally provides the company’s 3000 family of service delivery switches and service aggregation switches, the 5000 series of service aggregation switches, and its Ethernet packet configuration for the 5410 Service Aggregation Switch. The Optical Transport segment transports voice, video, and data traffic at high transmission speeds. The Software and Services segment offers network software suite, including the OneControl Unified Management System, an integrated network and service management software designed to automate and simplify network management, operation, and service delivery.
Please take a look at the 1-year chart of CIEN (Ciena Corporation) below with my added notations:
1-year chart of CIEN (Ciena Corporation)
CIEN peaked last October at $28 and lost a quarter of its value from there. The stock seems to be forming a base over the last (3) months all the while hitting a very important level of resistance at $24 (blue). No matter what the market has or has not done since November, CIEN has not been able to break through that area of resistance. If the stock can break above $24 higher prices should follow.

The Tale of the Tape: CIEN has a key level of resistance at $24. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $24.
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Two Charts Say the Market Rally Is Coming to an End

The stock market has had a great run this month. But it looks like the rally has just about run its course.
Many technical indicators are showing negative divergence right now. In other words, as the S&P 500 has been making higher highs on the chart, the momentum indicators have been making lower highs. That's "negative divergence," and it's a strong warning sign that the rally is nearing an end.
So now is not the time to bet aggressively that stocks are going to keep pushing higher. But it's probably a good time to make a bet on the short side of the market.
Here's a 60-minute chart of the S&P 500 as of Tuesday's close, plotted along with three momentum indicators...
s&p500 2/18/2014 closing chart
For the past week, the S&P 500 has been rallying and making higher highs on the chart. But the MACD momentum indicator and the five- and 14-day relative strength indexes (RSIs) have all been making lower highs.  (more)
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BlackBerry Shares Can Double Again: BBRY

Coming into the new year, BlackBerry was one of the names on my radar that I thought could double in 2014. After a monster January, shares of the Canadian mobile services company have been consolidating nicely below a declining 200-day moving average. I think there’s more upside here.
First let’s take a step back and look at this from a longer-term perspective. This is the chart that got me interested in $BBRY in the first place. Here is what I saw in December:
2-20-14 bbry st
You can see why this is my favorite setup: the false breakdown and simultaneous bullish momentum divergence. Here is what this one looks like today:  (more)
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McAlvany Weekly Commentary

Global Debt Bomb: From TNT Now to Nuclear

About this week’s show:
-Gold up 9%, silver up 12%, gold stock up 23% YTD
-U.S. destabilizing along with the rest of the world
-Trophy headquarters portend a top in tech
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Walter Energy, Inc. (NYSE: WLT)

Walter Energy, Inc. produces and exports metallurgical coal for the steel industry. It also produces thermal and industrial coal, anthracite, metallurgical coke, coal bed methane gas, and other related products. The company offers its thermal coal for electric utilities and industrial customers. Walter Energy, Inc. exports its metallurgical coal to Europe, Asia, and South America; and markets its thermal coal primarily in the United States. The company was formerly known as Walter Industries, Inc. and changed its name to Walter Energy, Inc. in April 2009. Walter Energy, Inc. was founded in 1946 and is headquartered in Birmingham, Alabama.
Please take a look at the 9-month chart of WLT (Walter Energy, Inc.) below with my added notations:
9-month chart of WLT (Walter Energy, Inc.)
WLT found support at $10 (blue) twice back in June and August. The stock then managed to rally up to a high of almost $20. Now the stock has approached $10 again and that might provide another bounce higher. However, the stock’s recent lagging of the overall market could be setting the stock up for a breakdown.

The Tale of the Tape: WLT has a key level of support at $10. A trader could enter a long position at $10 with a stop placed under the level. If the stock were to break below the support, a short position would be recommended instead.
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Chart of the Day - Novo Nordisk (NVO)

The Chart of the Day is Novo Nordisk (NVO). I found the stock by sorting the All Time High list for frequency in the last month, skipped the stocks that did not have positive gains for the last week and month, then used the Flipchart feature to review the stocks. Since the Trend Spotter signaled a buy on 11/29 the stock gained 23.69%.
NVO is a leader in insulin and diabetes care and also manufactures and markets a variety of other pharmaceutical products. The company is the world's largest producer of industrial enzyme products.

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