Friday, April 18, 2014

4 Dow Stocks Under Accumulation

The on-balance volume (OBV) is one of his favorite leading indicators, and here, MoneyShow’s Tom Aspray demonstrates how to use it on a longer time frame to identify stocks that are being accumulated.
The choppy nature of the 1st quarter is not surprising after the action in 2013. The sharp declines in the Nasdaq 100 and biotechnology stocks have caused some technical damage that would normally take time to repair.
The relative performance analysis of the SPDR Diamond Trust (DIA) suggests that it may be taking over market leadership. It has lagged for the past year as it is up just 13.8% versus a 21.1% gain in the Spyder Trust (SPY) and 26% gain over the past year in the PowerShares QQQ Trust (QQQ).  (more)

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Intel (NASDAQ: INTC) Stock Likely to Keep Surprising Everyone on the Upside

With each earnings season comes an avalanche of corporate news, and not coincidentally, an abundance of high-probability trade setups. For my part, I like to wait for a company to report its results, let emotions settle somewhat, and then see how the news affected the charts. 
Semiconductor giant Intel (NASDAQ: INTC) reported first-quarter earnings after the market close on Tuesday. The company announced earnings per share (EPS) of $0.38, which beat the consensus estimate by a penny. On the top line, revenue of $12.8 billion was a touch below analysts' estimates, but the company's gross margin came in a better than expected at 59.7% versus 59%.  (more)

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SunPower Corporation (NASDAQ: SPWR)

SunPower Corporation designs, manufactures, and delivers solar systems to residential, commercial, and utility customers. It operates in three segments: the Americas, the EMEA, and the APAC. The company offers solar power products, including panels, balance of system components, and inverters. It also designs, manufactures, and sells high-performance rooftop and ground-mounted solar power systems, as well as utility-scale photovoltaic power plants. In addition, the company offers operations and maintenance services, including remote monitoring, preventative, and corrective maintenance services, as well as rapid-response outage restoration and inverter repair services. Further, it leases solar power systems to residential customers. The company serves investors, financial institutions, project developers, electric utilities, independent power producers, commercial and governmental entities, production homebuilders, residential owners, and small commercial building owners.
Please take a look at the 1-year chart of SPWR (SunPower, Inc.) below with my added notations:
1-year chart of SPWR (SunPower, Inc.)
SPWR has been trading sideways for the last 6 months, trading between the $28 and $35 area. In addition, the stock had held an important level of support at $28 (blue) during that entire period of time. That level had also been a prior 52-week high resistance. Last week SPWR finally broke that support and should be moving overall lower from here.

The Tale of the Tape: SPWR had a key level of support at $28. Now that the stock has broken support, a trader might want to enter a short trade at or near the $28 level with a stop placed above that level. A break back above $28 could negate the forecast for a move lower.
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One Of The Greatest Opportunities In More Than A Decade / April 17, 2014
Today KWN is putting out a special piece which has some absolutely outstanding charts that were sent to us by David P. out of Europe.  These are charts that the big bullion banks follow closely in the gold and silver markets, as well as big money and savvy professionals.  David lays out the roadmap for one of the greatest opportunities in more than a decade for investors in the gold and silver space.
Below are the fascinating charts sent to us by David P. out of Europe which feature this opportunity.
Below are two charts showing the HUI Gold Bugs Index vs S&P 500.  This ratio has seen some massive moves the past 15 years.  The HUI index did bottom against the S&P 500 back in 2001 at 0.03 and then went as high as 0.55 in 2011, for a staggering 1,830% gain.  After that peak, it has fallen back to 0.1, which represents an 82% collapse (see chart below):
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Himax Technologies (NASDAQ: HIMX) Stock Could Soar 42%

The most basic rule in short-term trading is to buy low and sell high. It is also one of the most misunderstood and difficult to implement. While it seems like an easy task in hindsight, trying to do so in real time is a different story.
Investors have developed various technical tools to assist in determining when a stock is "high" or "low" in order to make buy and sell decisions. Truthfully, 98% of these indicators are nothing but derivatives of price, and therefore, completely useless when it comes to providing an edge.  (more)

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3 sectors to watch in an aging bull market

Another strong day for the market (^GSPC) yesterday has traders in better spirits after an ominous start to the week. Bullish comments by Janet Yellen on Wednesday helped, but one can’t help but feel we’re still in uncharted territory, with most market veterans seemingly grasping at straws to determine where we are in terms of the current bull market.
Many believe we are in the midst of an ongoing bull. Paul Schatz of Heritage Capital is one of these prognosticators, but senses our current bull market is getting close to be sent out to pasture. “The Bull market is old, and it’s wrinkly, but it’s not over yet,” Schatz opines in the attached video. “The bull market is transitioning to its final phase which is normal, bull markets don’t last forever.”
With that in mind, there are 3 sectors Schatz likes as the current bull market heads off into the sunset.  (more)

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