Friday, May 22, 2015

Chart of the Day Waters Corp (WAT)

The Chart of the Day belongs to Waters Corp (WAT).   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 feature to review the charts.  Since the Trend Spotter signaled a buy on 4/28 the stock gained 7.30%.

Waters Corporation is a holding company which owns only and all of the outstanding common stock of Waters Technologies Corporation, the operating subsidiary. It operates in the analytical instrument industry, with manufacturing and distribution expertise in three complementary technologies: high performance liquid chromatography instruments, chromatography columns and other consumables, and related service; mass spectrometry instruments that can be integrated and used along with other analytical instruments; and thermal analysis and rheology instruments.

technical indicators:

  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 8 new highs and up 8.66% in the last month
  • Relative Strength Index 77.38%
  • Barchart computes a technical support level at 131.53
  • Recently traded at 134.76 with a 50 day moving average of 125.64
Fundamental factors:
  • Market Cap $11.14 billion
  • P/E 22.67
  • Revenue expected to grow .70% this year and another 5.90% next year
  • Earnings estimated to increase 5.50% this year, an additional 9.50% next year and continue to increase at an annual rate of 9.13% for the next 5 years
  • Wall Street analysts issued 1 strong buy, 2 buy, 16 hold and 1 under perform recommendations on the stock
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Cornerstone OnDemand, Inc. (NASDAQ: CSOD)

Cornerstone OnDemand, Inc. provides cloud-based talent management solutions delivered as software-as-a-service. It provides recruiting, onboarding, learning, performance, succession, compensation, extended enterprise, and salesforce products offerings. The company offers Enterprise and Mid-Market solution that is a cloud-based suite that addresses hiring, developing, engaging employees throughout their careers, and cultivating future leaders. The Enterprise and Mid-Market solution also helps enhancing business execution through integrating with an organization’s extended enterprise of clients, vendors, and distributors by delivering training, certification programs, and other content. It also provides Cornerstone Growth Edition, a cloud-based talent management solution with learning and performance product offerings targeted to organizations with approximately 400 employees, as well as cross-product tools for analytics and reporting, employee profile management, and e-learning content aggregation.
Take a look at the 1-year chart of Cornerstone (NASDAQ: CSOD) below with my added notations:
1-year chart of Cornerstone (NASDAQ: CSOD)
CSOD has been trending lower for most of the past year. Over that time, the stock has formed an important trend line of resistance (red). Always remember, any (2) points can start a trend line, but it’s the 3rd test and beyond that confirm its importance. CSOD obviously has an important trendline of resistance, which currently sits right around $32.

The Tale of the Tape: CSOD is currently stuck under a down trending resistance. A break above that resistance should mean higher prices, thus a long trade could be made. Short traders might look to enter a trade at the resistance.
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Trade of the Day: MBIA Inc. (NYSE:MBI) Under $10 Stock Ready for a Big Move

MBIA Inc. (NYSE:MBI) — Shares of this diversified financial services company have already rallied more than 12% so far this month, in part spurred by the company’s latest earnings report. From a technical point of view, MBI stock looks to have built a bigger picture bottom that could lead to a move higher over the next 6-12 months.
On May 11, the company reported a drop in quarterly earnings from a year ago, primarily as a result of fewer gains on insured derivatives. However, they were still well ahead of expectations and investors bid up shares, which also got a boost in momentum from the broader leadership by the financial sector.  (more)

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The Real Reason For the Oil Crash… And Why It Could Happen In Other Asset Classes

It looks like Oil’s bounce is over.
Traders have been playing for a rise in Oil based on two things:
1)   Oil being sharply oversold due to its 60% collapse in the span of six months.
2)   We’re heading into “drive season” (the summer) in which gas demand increases.
This has seen Oil surge 45% since its March 2015 bottom.
However, the larger story for Oil, like all things, concerns the US Dollar. Below is a chart showing Oil against an inverted chart of the US Dollar chart (so if the US Dollar strengthens, the blue line falls).
You can note the close correlation between the two:

It is not coincidence that Oil bottomed the very same day that the Us Dollar peaked and began to correct. Oil exploration is an extremely capital intensive business: drilling a new Oil well costs at a minimum ~$4 million… and can easily run up into the $100+ million range.  (more)

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