500.com Ltd (NYSE: WBAI)

500.com Limited provides online sports lottery services in the People’s Republic of China. It operates as an aggregator and processor of lottery purchase orders from its registered user accounts. The company offers a suite of online lottery services, information, user tools, and virtual community venues. Its lottery sales services comprise individual lottery purchase, lottery pool purchase, automatic tag-along purchase, recurring purchase, and locked-in lottery number purchase services. The company provides its services through its mobile applications to mobile users, as well as through its online platform. As of December 31, 2013, it had 19.1 million registered user accounts.
Take a look at the 1-year chart of 500.com (NYSE: WBAI) below with my added notations:

WBAI had been on a steady decline starting from back in August, but now the stock seems to be trying to bottom out over the last few months. During the possible bottoming process, WBAI has created a resistance at $20 (blue), which is a level that had also been support back in December. A break above that $20 level should mean higher prices for the stock.

The Tale of the Tape: WBAI has a key level of resistance at $20. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $20.
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Chart of the Day - Avolon Holdings (AVOL)

The Chart of the Day belongs to Avolon Holdings (AVOL).  I found the stock by sorting today's     All Time High list for the stocks with the highest technical buy signals then used the Flipchart function to review the charts.  Since the Trend Spotter signaled a buy on 4/20 the stock gained 7.27%.

Avolon Holdings Limited provides aircraft leasing and lease management services. The company owned, managed and committed fleet of aircraft. It operates primarily in the United States, Dubai, Singapore and China. Avolon Holdings Limited is headquartered in Ireland.

100% technical buy signals

• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 10 new highs and up 9.55% in the last month
• Relative Strength Index 78.70%
• computes a technical support level at 22.62
• Recently traded at 23.62 with a 50 day moving average of 21.76

Fundamental factors:

• Market Cap $ 1.91 billion
• Revenue expected to grow 21.40% this year and another 11.70% next year
• Earnings estimated to increase 30.10% this year, an additional 13.30% next year and continue to increase an an annual rate of 18.32% for the next 5 years
• Wall Street analysts issued 2 strong buy, 4 buy and 1 hold recommendation on the stock

I'd advise you use a moving stop loss 10% below its recent high to protect your gains.

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Goldman and Citi are Wrong About Microsoft Corp. (Nasdaq: MSFT)

Now that two of Wall Street’s biggest names have put an unusual “sell” rating on Microsoft Corp. (Nasdaq: MSFT), investors might be tempted to dump shares of the tech giant.
That would be a mistake.
But before we get into why Goldman Sachs Group, Inc. (NYSE: GS) and Citigroup, Inc. (NYSE: C) are wrong about Microsoft stock, let me share with you what they don’t like about the venerable software company.  (more)

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Gold Miners near breakout levels, a good place to hide?: GDX, GDXJ, XAU, HUI

If the stock market would happen to head lower in price, where would be a good place to hide? Another question could be, what area that has done poorly could be acting better?
The table below looks at the S&P 500, Bond ETF (TLT) and Gold Miners ETF (GDX) over the past 2 months.

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As you can see the hard hit Gold Miners ETF (GDX) is acting a little better than the broad market and TLT over the past two months. Of course one can not say this about GDX over the past few years, as miners have not done well at all.
The chart below looks at GDX over the past nine years. The GDX decline over the past few years has taken it back to the financial crisis lows it hit in 2008, where it could be creating a “W” bottom and higher lowers taking place, with momentum doing the same (creating higher lows).

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A little bit of positive price action in GDX of late, does NOT prove that its bear market is over with! For GDX to do well going forward, the first step is for it to breakout from this short term pennant pattern and push higher!
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