Thursday, August 21, 2014

US Steel X: A Strong Pick

The recent market break was decisive; thus, it’s best to turn defensive by selling some stocks, holding plenty of cash, and limiting new buying to small positions, suggests Mike Cintolo, editor of Cabot Top Ten Trader.
That said, you should keep your shopping list ready—we still have many recent earnings winners that continue to hold up well in the face of a weak market.
Our latest Top Pick is US Steel (X), which broke out from a solid base and exploded higher on enormous volume—and we think it can do well in this challenging environment.
The reason for the stock’s strength is good old earnings, which blew away all expectations last week (thanks mainly to cost-cutting), and—just as important—some very bullish comments from the CEO on the economy and demand.  (more)

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Kandi Technologies Group Inc (NASDAQ: KNDI)

Kandi Technologies Group, Inc., through its subsidiaries, designs, develops, manufactures, and commercializes various vehicles. It offers electrical vehicles, all-terrain vehicles, go-karts, and specialized automobiles; and utility vehicles, three-wheeled motorcycles, refitted cars, and various auto generators. Kandi Technologies Group, Inc. sells its products to exporters, importers, distributors, dealers, and business partners in North America, Europe, and China. The company was formerly known as Kandi Technologies, Corp. and changed its name to Kandi Technologies Group, Inc. in December 2012.
Take a look at the 1-year chart of Kandi (Nasdaq: KNDI) with added notations:
1-year chart of Kandi (Nasdaq: KNDI)
KNDI started from a low at $4 back in August, rallied to a high of $22 in March, and eventually fell down to $11 in April and May. Since that time, the stock has rallied back up to the $22 resistance (red) and appears to have now completely formed the cup (blue) and handle (purple) of a cup and handle pattern.
A break through the down trending resistance (green) should be the first sign that the stock is heading towards a breakout through $22

The Tale of the Tape: KNDI has formed a C&H pattern. A long trade could be entered on a break above the trendline resistance (currently near $20), or on a breakout above the $22 level, with a stop placed under the point of entry.
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Car Repos Soar 70% As Auto Subprime Bubble Pops; "It's Contained" Promises Fed

The auto loan subprime bubble may be the latest to burst (after student loans) as the rate of car repossessions jumped 70.2 percent in the second quarter, with much of that increase coming from finance companies not run by automakers, banks or credit unions. "The number of delinquencies and repossessions rising is what we would expect as the auto industry sells more vehicles," "But this slight uptick is one to keep an eye on." The surge in delinquencies and repossessions is being driven primarily by borrowers with subprime and deep subprime credit scores.  (more)

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Chart of the Day - Zoetis (ZTS)

The Chart of the Day belongs to Zoetis (ZTS). 
Zoetis Inc. is an animal health company. The company discovers, develops, manufactures and markets veterinary vaccines and medicines with a focus on both farm and companion animals. It primarily operates in the United States, Europe, Africa, the Middle East, Canada, Latin America, and the Asia Pacific.

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Frank Holmes: Rare Interview with One of Mining's Largest Fund Managers by Stansberry Radio

This week, Frank Holmes, CEO and CIO of U.S Global Investors, Inc., joins S&A Investor Radio to share not only his favorite ideas but his favorite investment strategies as well...
He discusses his in-depth strategies for picking stocks and allocating over $1 billion in assets to his numerous funds.
You'll hear why he travels around the world to understand the political situation in each country and visits management teams and properties of the companies he recommends.
Then, you won't want to miss this... he shares some of his favorite investment ideas with us.
And get ready for an educational segment on the energy sector... Frank goes over a recent forecast he saw for oil production in the U.S.
Find out why he says that this prediction could not be more wrong...(more)
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