Tuesday, May 12, 2015


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XOMA Corp (NASDAQ:XOMA) has already recouped its recent losses and looks poised to break resistance at $3.99. The near-term outlook stays cautious till the stock closes conclusively above this zone. So far the technical daily chart is still showing buy signal with stock trading above all short-term EMAs with MACD on top of signal line and RSI above its 50% level. In addition, we are seing some serious upside volume coming into this stock over the last few days. Short-term traders can hold their longs with a stop at $3.45

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BlackBerry Ltd (NASDAQ:BBRY) finished the session with a gain of 58 cents, or 5.92%, on higher-than-average volume, closing near the session high. This is a clear indication that current momentum could continue in the next few trading days toward the 11-11.2 area. Watch BBRY trade tomorrow since the stock has solid fundamentals and technicals suggesting that share prices could be continue on an upwards path, especially in the near-term.

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Cyberark Software Ltd (NASDAQ:CYBR) may test key support (50EMA) in the low $60s. The short-term exponential moving averages are starting to turn down and we are close to getting a bearish cross. In addition, the MACD is displaying a negative divergence and RSI is slipping in the neutral.

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Oclaro, Inc. (NASDAQ:OCLR) continues to hold the 100 and 200-day EMAs which is very bullish. I expect the stock to test the $2 level soon. A close over this level would be bullish and I'd expect the stock to run to $2.20.

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Cerus Corporation (NASDAQ:CERS) broke out above the 4.70 resistance level on decent volume today. I like the idea of getting long here with a stop below the 50-day EMA.
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The crushing weight of Canada’s debt

The Globe’s Report on Business section this Saturday was a cautionary feature extravaganza on Canada’s debt binge.  Some excellent articles and charts (see the info graphic summary here).
It is not a pretty picture, but facts must be faced and risks managed.  Sticking heads in the sand will not help.  Years of low rates have fueled reckless lending and borrowing and set Canada up for a doozie of a mean reversion cycle.  The exodus and closure of Canadian retailers (today Canada’s largest and most over-built sector) is only started.  This warns of more layoffs and empty commercial space.  It also underlines the financial fragility in Canadian families as well as the debt/risk-selling Canadian finance sector (see: A plague of financials), and the taxpayer-backed Canadian Mortgage and Housing Corporation.
Times are a changing as debt revulsion spreads.  The adjustment periods are painful, but speaking publicly and admitting the debt mistakes people have made are critical parts of the healing process.  If we must make financial mistakes, earlier is better than later of course, when people have less time to recover.  Everyone can make better choices by learning from the stories of others.  Time for honest discussions.
‘It’s dream crushing’: law student on being $150,000 in debt. Here is a direct video link.

How one young family is digging out of debt.  Here is a direct video link.
Bankrupt at 19: How one man climbed out of debt and started a new life. Here is a direct video link.
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These Catalysts Make Gran Tierra Energy Inc.(TSX:GTE)(NYSE:GTE) a Turnaround Opportunity

It has been a tough time for investors in Gran Tierra Energy Inc. (TSX:GTE)(NYSE:GTE), as it has consistently failed to unlock value for shareholders, despite its promising assets and operations. This is now set to change with activist investor West Face. West Face holds almost 10% of the company, thereby winning a victory in its battle with existing management. As a result, West Face has been able to select a new CEO and will nominate four directors to the board.
I believe this could be one of the catalysts required to have a marked improvement in Gran Tierra’s performance, which will unlock value for investors. (more)

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Jabil Circuit, Inc. (NYSE: JBL)

Jabil Circuit, Inc., together with its subsidiaries, provides electronic manufacturing services and solutions worldwide. It offers electronics design, production, and product management services to companies in the aerospace, automotive, computing, defense, digital home, energy, healthcare, industrial, instrumentation, lifestyles, mobility, mold, networking, packaging, peripherals, storage, telecommunications, and wearable technology industries. The company’s services include integrated design and engineering; component selection, sourcing, and procurement; automated assembly; design and implementation of product testing; parallel global production; enclosure services; systems assembly, direct order fulfillment, and configure-to-order; and injection molding, metal, plastics, precision machining, and automation services. It also provides mobility, display, set-top boxes, and peripheral products, such as printers and point of sale terminals.
Take a look at the 1-year chart of Jabil (NYSE: JBL) below with my added notations:
1-year chart of Jabil (NYSE: JBL)
Over the last 6 months JBL has been trending consistently higher, while also forming a nice trend line of support (green). Always remember that any (2) points can start a trend line, but it’s the 3rd test and beyond that confirm its relevance. As you can see, the market deems JBL’s trendline to be very important. In addition, the stock also has a key level of resistance at $24 (red).

The Tale of the Tape: JBL has a trend line support and a $24 resistance. A long position could be entered on a break above $24, or on a pullback to the trendline, with a stop placed below the level of entry. A short position could be entered if JBL were to break below its trendline.
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