Tuesday, January 27, 2015

5 Trade Ideas : Stamps.com, KKR, CNOOC, Lear & Catamaran

CNOOC, Ticker: $CEO
CNOOC, $CEO, sold off with the Crude Oil decline, but began a consolidation process in December. It ended the week pressing against downtrending resistance and the 20 day SMA, unable to move over it. But the MACD and RSI are diverging higher. The RSI is making a new 4 month high as it moves over the mid line. Watch for price to follow higher.  (more)

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It's Finally Time to Buy Gold Stocks

A safe-haven asset that has been left for dead in recent years is about to soar: gold.
One more Stansberry Research analyst just turned bullish on the precious metal...
 In the January 12 Digest, we explained why Stansberry Resource Report editor Matt Badiali is now bullish on junior mining stocks. He wrote...
We have a tremendous opportunity in junior miners today. As my colleague Dr. Steve Sjuggerud likes to say, they have the three hallmarks of a great contrarian trade... They're cheap, hated, and in an uptrend.

 Longtime readers know when junior miners rally, they soar... making investors five or 10 times their money.
 Then, in the January 15 Digest, we shared Stansberry Short Report editor Jeff Clark's research explaining gold's technical strength...
Gold stocks kicked off 2015 the same way they started 2014 – by breaking above resistance of both the nine-day exponential moving average (EMA) and the 50-day moving average (DMA).
Take a look at this chart of the Market Vectors Gold Miners Fund (GDX)...
The chart also shows a "bullish cross" of the nine-day EMA over the 50-DMA.

This is how strong gold-stock rallies begin.  (more)
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Boardwalk Pipeline Partners, LP (NYSE: BWP)

Boardwalk Pipeline Partners, LP, through its subsidiaries, provides transportation, storage, gathering, and processing services for natural gas and natural gas liquids (NGLs). The company operates interstate natural gas and NGLs pipeline systems, including integrated storage facilities. Its pipeline systems contain approximately 14,195 miles of interconnected natural gas pipelines, directly serving customers in 13 states and indirectly serving customers throughout the northeastern and southeastern U.S. through various interconnections with unaffiliated pipelines. The company also owns approximately 255 miles of NGLs pipelines serving customers in Louisiana. In addition, it has underground storage caverns having aggregate capacity of approximately 207.0 billion cubic feet of working natural gas and 17.6 million barrels of NGLs.
Take a look at the 1-year chart of Boardwalk (NYSE: BWP) below with added notations:
1-year chart of Boardwalk (NYSE: BWP)
After a steady 5-month rally BWP dropped into October and has been trading sideways ever since. During the sideways 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.
BWP’s rectangle pattern has formed an $18 resistance (red) and a $15 support (blue). At some point the stock will have to break one of the two levels.

The Tale of the Tape: BWP is trading within a rectangle pattern. The possible long positions on the stock would be either on a pullback to $15 or on a breakout above $18. The ideal short opportunities would be on either a break below $15 or on a rally back up to $18.
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Buy Caterpillar (CAT), Collect Its Strong Dividend, Hold for the Long Term

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Industrial earth-moving giant Caterpillar (CAT - Get Report) saw its stock reach a new 52-week low of $83.05 recently as slower-than-expected global economic growth continues to pressure the stock.
Caterpillar, headquartered Peoria, Ill., makes diesel and natural gas engines and industrial gas turbines. This is in addition to its construction and mining equipment. These segments, while profitable, have struggled amid weak global economic environment, leading to 2% and 19% year-over-year declines, respectively in third-quarter Resource Industries revenue and Construction Industries revenue. (more)

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