Friday, June 5, 2015

Brazil iShares Fund (EWZ): A Second Chance to Profit on Brazil

If you want to profit from the falling dollar, look no further than Brazil...
On Tuesday, I explained that the dollar bounce is about to end. After rallying for the past two weeks, the dollar is now overbought... and ready to resume the downtrend it started in March.
And just like in April, one of the simplest ways to take advantage is by buying Brazil...
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Kythera Biopharmaceuticals Inc (NASDAQ: KYTH)

Kythera Biopharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of prescription products for the aesthetic medicine market in the United States and internationally. Its product candidate ATX-101, is an injectable drug in late-stage clinical development for the reduction of submental fat. The company also maintains research interest in hair and fat biology, pigmentation modulation, and facial contouring. It has a collaboration arrangement with Bayer Consumer Care AG and a related collaboration agreement with Bayer Consumer Care AG’s affiliate, Intendis GmbH to develop and commercialize ATX-101 outside the United States and Canada.
Take a look at the 1-year chart of Kythera (NASDAQ: KYTH) below with my added notations:
1-year chart of Kythera (NASDAQ: KYTH)
KYTH rallied from October up until its March peak. From there, the stock has traded mostly sideways, with the exception of the May dip. Over the course of that sideways move KYTH has created an obvious resistance at that $52 level (red). A break above $52 should mean higher prices for the stock.

The Tale of the Tape: KYTH has a key level of resistance at $52. 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 $52.
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Chart of the Day - Spirit AeroSystems (SPR)

The Chart of the Day belongs to Spirit AeroSystems (SPR).  I found the stock by sorting the All Time High list for the stocks with the best technical buy signals then used the Flipchart feature to review the charts.  Since the Trend Spotter signaled a buy on 5/8 the stock gained 4.93%.

Spirit AeroSystems (SPR) is the world's largest independent supplier of commercial airplane assemblies and components. In addition to its Kansas facility, Spirit has operations in Tulsa and McAlester, Okla., Prestwick, Scotland, and Samlesbury, England. In the U.S., Spirit's core products include fuselages, pylons, nacelles and wing components. Additionally, Spirit provides aftermarket customer support services, including spare parts, maintenance/repair/overhaul, and fleet support services in North America and Europe. Spirit Europe produces wing components for a host of customers, including Airbus.

  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 11 new highs and up 9.07% in the last month
  • Relative Strength Index 71.48%
  • Barchart computes a technical support level at 54.75
  • Recently traded at 56.02 with a 50 day moving average of 52.61
Fundamental factors:
  • Market Cap $7.71 billion
  • P/E 14.67
  • Revenue expected to grow 3.00% next year
  • Earnings estimated to increase 8.70% this year, an additional 5.20% next year and continue to increase at an annual rate of 12.40% for the next 5 years
  • Wall Street analysts issued 6 strong buy, 5 buy 5 hold a 1 sell recommendation on the stock
The 100 day moving average vs the price has been a reliable technical trading strategy on this stock.
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Bank of America (NYSE: BAC) and Citigroup (NYSE: C): Breakouts Signal 'Buy' Now

It's been a long time, eight years in fact, since we were able to say with a straight face that Bank of America (NYSE: BAC) and Citigroup (NYSE: C) were good investments.

Moody's (NYSE: MCO) has already picked up on improvements in their bonds with low investment grade ratings of Baa2 for each. But now the charts tell us that their stocks have also proven themselves and may be ready for further gains.  (more)

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