Wednesday, May 6, 2015

Crude Oil buying opportunity

Crude Oil buying opportunity
 This is the fifth buy signal I have had since the daily chart changed to up at the end of March. Oil has also been trading above the nine period moving average I consider that a super trend. Support is at 5850 and resistance is at 6140 on the June contract. The weekly chart had a changed to the upside last week and has consistently been making higher lows since the bottom. So long as 5607 holds this trend should continue. The weekly chart suggests that crude should continue this trend for at least several more weeks. I have resistance at 6050 ,6500 and 6900. Although the trend is still down on the monthly chart my research has a King's Cross indicator counter trend buy signal that should eventually get crude to $80. Only a new contract low would negate this.
Bullish Highlights
  • 1. Buy signals on the daily chart
  • 2. Daily chart has been super trending
  • 3. Weekly chart continues to trend up and trend has changed to up
  • 4. Monthly chart has King's Cross buy signal
  • 5. Global quantitative easing keeping demand up
  • 6. Reduced shall production
  • 7. Conflict in Yemen
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Top 3 Stocks in This Hot Defense Segment: AeroVironment (Nasdaq: AVAV), Raytheon (NYSE: RTN), Boeing (NYSE: BA)

As the “Unmanned Systems 2015″ trade show gets underway in Atlanta this week, it’s worth noting that a timely growth-stock opportunity lies in the unmanned aerial vehicle (UAV) segment.
With more than 8,000 attendees from around the world, Unmanned Systems is the largest international conference and trade show for the UAV industry. The show will underscore how the UAV is revolutionizing the projection of power around the world.  (more)

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Energy Stocks Hit 6-Month High as Valuations Spike To 1999 Peaks

Hope springs eternal. The S&P Energy sector is surging once again this morning as crude prices top $60 with stocks now back at Nov 2014 levels (up 12% in the last month). What most do not realize as they blindly follow the momentum, excited that 'something is working' is that the valuations - based on analysts' forward earnings projections - have only been marginally higher than this once... right at the peak in 1999. The S&P Energy sector trades at a 28x Fwd P/E!

Everything is awesome......

And Expensive...

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Biotech Stocks to Watch in May 2015: Amgen Inc. (NASDAQ/AMGN), Biogen Inc. (NASDAQ/BIIB)

The best biotech stocks to watch for in May 2015 are businesses that dominate their respective market, command a diverse drug pipeline, and have lots of profits to show for it.
Profitability is crucial given that the NASDAQ Biotechnology Index continues to climb higher, gaining 12% in 2015 and adding to the 36% increase in 2014. Biotech stocks with extended valuations will be the first to sell off when euphoria wears off and investor expectations regarding future profits normalize. So, let’s focus on the best biotech stocks—ones with strong earnings and reasonable valuations. (more)

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Radian Group Inc (NYSE: RDN)

Radian Group Inc., through its subsidiaries, provides mortgage and real estate products and services in the United States. It operates through two segments, Mortgage Insurance, and Mortgage and Real Estate Services (MRES). The Mortgage Insurance segment provides credit-related insurance coverage, principally through private mortgage insurance that protects mortgage lenders from all or a portion of default-related losses on residential mortgage loans made to home buyers, as well as facilitates the sale of these mortgage loans in the secondary mortgage market. The MRES segment provides outsourced services, information-based analytics, and specialty consulting services for buyers and sellers of, and investors in, mortgage- and real estate-related loans and securities, and other debt instruments.
Take a look at the 1-year chart of Radian (NYSE: RDN) below with added notations:

RDN was on a nice trend higher from August until it's December peak, but then the stock started a sideways move. In addition, twice over the last 5 months the stock had hit a level of resistance at $17.50 (green). That resistance level was also a 52-week high resistance. Back in mid-April RDN finally broke to a new high, and now that same $17.50 level provided support for the stock during Friday's pullback.

The Tale of the Tape: RDN broke out to a new 52-week high. A long trade could be made near $17.50 with a stop placed below that level. A break back below $17.50 would negate the forecast for a continued move higher.
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