Thursday, September 10, 2015

Oil stocks are at a critical juncture

One of the biggest casualties of the recent stock market decline has been energy stocks. One may even argue that they are the culprit, or at least one of many. This includes oil stocks. Using the XOI (now the NYSE ARCA Oil & Gas Index) as a measuring stick, we can see how much damage has been done to these stocks, both recently and over the past year. This is especially true relative to the major stock averages which began the recent plunge not far from their respective 52-week highs.
At present, the XOI finds itself in a very interesting spot from a longer-term perspective. Looking at the chart, you can see why we say that. (more)

Agios Pharmaceuticals Inc (NASDAQ: AGIO)

Agios Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapeutics in the field of cancer metabolism and rare genetic disorders of metabolism in the United States. The company’s product candidates include AG-221, a potent inhibitor of the mutated isocitrate dehydrogenase (IDH) 2 protein for the treatment of patients with cancers that harbor IDH2 mutations; and AG-120, an oral inhibitor of the mutated IDH1 protein for the treatment of patients with cancers that harbor IDH1 mutations. Its product candidates also comprise AG-348, an oral small molecule and activator of the pyruvate kinase-R enzyme used for the treatment of patients with PK deficiency.
Take a look at the 1-year chart of Agios (NASDAQ: AGIO) below with the added notations:
1-year chart of Agios (NASDAQ: AGIO)
AGIO has been working its way lower over the past 8 months. During that time, the $90 price level (blue) has become very important to the stock over. Not only was the $90 level a resistance area back in October and November, that level was also support once AGIO got above it. Last week the $90 level was hit as resistance, yet again.

The Tale of the Tape: AGIO has a key level at $90. A trader could enter a long position on a break above $90 with a stop placed under the level. However, if traders are bearish on the stock, a short trade could be made instead at the $90 resistance.

Chart of the Day - La Jolla Pharmaceuticals (LJPC)

Add caption
          The Chart of the Day belongs to La Jolla Pharmaceuticals (LJPC).  I found the biological pharmaceutical stock by using Barchart to sort theRussell 3000 Index stocks first for the highest Weighted Alpha then again for Barchart technical buy signals of 80% or better,  The stock gained 34.88% since the Trend Spotter signaled a buy on 8/26.

 The company is engaged in the research and development of therapeutic products for the treatment of autoimmune and inflammatory diseases.

technical indicators:

  • 100% Barchart technical buy signals
  • 259.87+ Weighted Alpha
  • Trend Spotter buy signal
  • 7 new highs and up 53.47% in the last month
  • Relative Strength Index 73.95%
  • Barchart computes a technical support level at 30.10
  • Recently traded at 41.62 with a 50 day moving average of 29.86
Fundamental factors:
  • Market Cap $637.15 million
  • Earnings projected to compound at an annual rate of 13.20% for the next 5 years
  • Wall Street analysts issued 4 strong buy recommendations on the stock
  • The individual investors on Motley Fool voted 61 to 20 for the stock to beat the market

Stocks to Watch: PEIX, ZIOP, JBLU

Pacific Ethanol Inc (NASDAQ:PEIX) is in the beginning stages of a Breakout. The stock finally broke the downtrend line that had been in place since May, which could spark a momentous rally. Technical indicators are supporting the bulls. The MACD is rising and above the signal line and RSI is moving up. In addition, the CMF is also turning up which means there is more money flowing into the stock, all early positive signals. I think we will see some nice follow through tomorrow. This was a $13 stock less than 5 months ago.

PS : U.S. ethanol exports rebounded strongly in July, according to RFA analysis of government data released last week, rising 28% from June to 77.2 million gallons, so keep PEIX on your watch list going forward.

ZIOPHARM Oncology Inc. (NASDAQ:ZIOP) is trading around the 200-day EMA and a close above this level could generate a significant upswing. Keep it on your watch list.

JetBlue Airways Corporation (NASDAQ:JBLU) hit another 52-week high and looks to be giving another entry. Go long on the break of Wednesday’s high at 25.57