Saturday, June 27, 2015

Joy Global Inc. (NYSE: JOY)

Joy Global Inc. manufactures and services mining equipment for the extraction of coal, copper, iron ore, oil sands, gold, and other minerals. The Underground Mining Machinery segment produces armored face conveyors, battery haulers, continuous chain haulage systems, continuous miners, conveyor systems, feeder breakers, flexible conveyor trains, hard rock mining products, high angle conveyors, long wall shearers, powered roof supports, road headers, roof bolters, and shuttle cars. The Surface Mining Equipment segment produces blasthole drills, conveyor systems, electric mining shovels, feeder breakers, high angle conveyors, walking draglines, and wheel loaders. The company sells its products and services directly to mining companies through a network of sales and marketing personnel worldwide. Joy Global Inc. was founded in 1884 and is headquartered in Milwaukee, Wisconsin.
Take a look at the 1-year chart of Joy (NYSE: JOY) with the added notations:
1-year chart of Joy (NYSE: JOY)
JOY was in a solid downtrend from August of last year until March of this year. After the stock finally bottomed, JOY ended up finding repeated support at $38.00 (green) over the following 4 months. Now that the stock is at that support level again, traders should be able to expect some sort of bounce, most likely back up to the $41 resistance (red). However, if the $38.00 support were to break, lower prices should follow.

The Tale of the Tape: JOY has an important level of support at $38.00. A trader could enter a long position at $38.00 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.
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Interest Rates $TLT , Apple $AAPL and Wheat

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Chart of the Day: Ashbury Automotive Group (ABG)

The Chart of the Day goes to the Ashbury Automotive Group (ABG). I found the automotive and truck dealership 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 5/18 the stock gained 6.99%.

Asbury Automotive Group is one of the largest automotive retailers in the United States. They sell, finance and service a diverse range of foreign and domestic automobile brands.
The status of Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. 

technical indicators:
 100% Barchart technical buy signals
 Trend Spotter buy signal
 Above its 20, 50 and 100 day moving averages
 10 new highs and up 8.21% in the last month
 Relative Strength Index 70.61%
 Barchart computes a technical support level at 91.46
 Recently traded at 92.87 with a 50 day moving average of 86.97

Fundamental factors:
 Market Cap $ 2.53 billion
 P/E 19.86
 Revenue expected to grow 10.70% this year and another 5.90% next year
 Earnings estimated to increase 25.20% this year, an additional 11.00% next year and continue to increase at an annual rate of 16.55% for the next 5 years
 Wall Street analysts issued 2 strong buy, 2 buy, 4 hold, 1 under perform and a sell recommendation on the stock
The 50-100 Day MACD Oscillator has been a reliable technical trading strategy and should continue to be used for entry and exit points on this stock.

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How High Are Corn Prices Going?

Corn futures in the December contract are sharply higher up 4 out of the last 5 trading sessions settling last Friday at 3.68 a bushel while currently trading at 4.02 rallying about $.35 on massive flooding in the Midwestern part of the United States causing production concerns sending prices that we’ve not seen since April 8th hitting a 10 week high.

Corn futures are trading above their 20 and 100 day moving average forming a triple bottom in Monday’s trade around the 3.65 level, however I’m still sitting on the sidelines as the chart structure is absolutely horrific at the current time as the 10 day low is almost $.40 away which does not meet my criteria to enter, however I’m certainly not recommending any type of short position as that would be countertrend trading.

Traders are awaiting next Tuesday’s USDA acres report which will show estimates lowering uncertainty in this market because at the current time estimates are around 89 million acres but nobody really knows what the report will state due to the wet conditions especially in the state of Iowa so expect high volatility next week.  Tuesday will give us some type of estimate of what production could be and if you are a farmer as I’ve talked about in previous blogs if prices were 4.25/4.50 I would definitely take advantage of that situation and sell your cash crop due to the fact that carryover levels are extremely high as there’s no supply problems despite this weather scare.

As I write this article in central Illinois the corn crop here is outstanding and is already about 4 feet tall green and lush so this is only affecting certain areas of the Midwest but as a speculator sit on the sidelines and wait for better chart structure to develop. TREND: HIGHER--CHART STRUCTURE: POOR

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