Monday, October 5, 2015

Stocks To Watch: $VIPS, $AKS, $JMEI, $MU

Vipshop Holdings Ltd (NYSE:VIPS) Watch for a possible resistance breakout. The upside momentum could push the stock to 21.5/23 if it breaks and close above the downtrend line. Major momentum indicators are gaining strength, this suggests further upside momentum.

AK Steel Holding Corporation (NYSE:AKS) finally closed back above the 2.38/2.4 resistance area Friday on decent volume. If momentum continues as I expect next week, I believe we could see a nice rally to 2.89 or 3, the next short-term resistance.

Jumei International Holding Ltd (NYSE:JMEI) is setting up for a potential breakout above 10.46. This range needs to be broken to signal the next major directional move. Most oscillators momentum indicators are showing strength.

Micron Technology, Inc. (NASDAQ:MU) is a buy based on Friday's bullish move. The stock broke the 20-day EMA and also the resistance of the descending channel. First possible target price for this stock is at $16.92 (50EMA) and have to see from there. Looking at the technical indicators, we have the RSI above the 50% level and the MACD also triggered a new bullish signal. The 200-day EMA is now located at 22.79, which leaves a lot on the table in terms of upside potential. Long setup.

RCM Corp. (RC)

Company Profile: RDM Corporation provides remote deposit capture (RDC) and desktop remittance processing solutions in the United States and internationally. The company offers software and hardware solutions, such as Web-based and mobile RDC for large corporate clients and small businesses, and transactional data management.

Trailing P/E: 22.63
Forward P/E: 18.70
EPS: 0.19
Beta: 0.62
Dividend Yield: 1.48%
P/S: 3.92
P/B: 2.94
Profit Margin: 17.55%
Operating Margin: 17.33%
ROA: 7.77%
ROE: 14.07%
Qtrly Earnings Growth (yoy): 152.50%
Current Ratio 11.08

Additional Fundamental Data:

RC has broken out of an 8-month consolidation
New 52-week high
New 5-year high
Buying momentum is positive and rising
Buying volume is expanding
RC is above the Cloud support zone
RC has outperformed the bench mark S&P 500 since early Q1
Support is at $3.80

The safety stop is at $3.74

The target is $5.20

Note: If RC moves past the target, we suggest using a 3% trailing stop.

Silver Miners (SIL) May Shine in the Short Term: $SIL, $SLW, $MAG, $SSRI, $POYYF, $FNLPF, $PPP, $TAHO, $PAAS, $MUX

Global X Silver Miners (SIL) — This ETF invests at least 80% of its assets in securities of the Solactive Global Silver Miners Total Return Index and in ADRs based on the securities in the underlying index.
Top holdings in SIL include Industrias Penoles SAB de CV, Silver Wheaton Corp. (SLW), MAG Silver Corp (MAG), Silver Standard Resources Inc. (SSRI), Polymetal International (POYYF), Fresnillo Plc (FNLPF), Primero Mining Corp (PPP), Tahoe Resources Inc (TAHO), Pan American Silver Corp. (PAAS) and McEwen Mining Inc (MUX).
Like gold mining stocks and Market Vectors Gold Miners ETF (GDX) — which was recently featured as the Trade of the Day — silver miners have been out of favor since 2011, when SIL made its all-time high at over $31 per share. Also like gold miners, recent technical action indicates that silver miners are under accumulation. While SIL is down 42% in the past year, shares are up 4.5% from their mid-September low.
For the first time in years, my proprietary internal indicator, the Collins-Bollinger Reversal (CBR), issued a buy signal for SIL. The signal was triggered on Sept. 11 at what could be the bottom of a deep “V,” which is a very bullish formation.
Admittedly, this is a high-risk situation, but a modest investment could result in a large percentage gain.
Buy SIL under $6.35 for a two-month trade to $7.35 for a potential gain of more than 15%. Long-term holders may see the ETF jump above $8 and even resolve into a bull market. A stop-loss order should be entered under the recent low of $6.04. SIL also currently has a 30-day SEC yield of 1.8%.

US Weekly Economic Calendar

time (et) report period ACTUAL forecast previous
10 am ISM nonmanufacturing index Sept.   57.5% 59.0%
TUESDAY,  oct. 6
8:30 am Trade deficit Aug.   -$48.1 bln -$41.9 bln
3 pm Consumer credit Aug.   -- $19 bln
8:30 am Weekly jobless claims Oct. 3   271,000 277,000
2 pm FOMC minutes Sept. 17      
8:30 am Import price index Sept.
-- -1.8%
10 am Wholesale inventories Aug.   -- -0.1%