Friday, October 9, 2015

Stocks To Watch: $ESI, $MSFT, $APOL

Keep an eye on ITT Educational Services, Inc. (NYSE:ESI) to see if tomorrow the stock will confirm intraday breakout. Symmetrical triangle over 3.8 has a measured move to 5.50 then 5.83. The higher short interest ( 57.59% or 10.8M shares ) could also provide a near-term catalyst, if the stock begins to rise. The short interest coverage ratio is 46 days according to the average volume of 309K, which means any short squeeze could be brutal. Im long.

Microsoft Corporation (NASDAQ:MSFT) looks poised for a break to the upside. Technical indicators are looking bullish. The RSI is moving up and above its 50% level. The daily MACD continues to trade in the positive zone and the CMF is also positive, which means there is more money flowing into the stock.

Apollo Education Group Inc (NASDAQ:APOL) broke out from a sidewards movement today with decent volume, creating a significant amount of bullish potential. On the technical side, MACD and ADX all point to upward trend while RSI is also rising but has not yet reached overbought level. Plus, the stock broke through its 50-day EMA for the first time since March and should continue to move. APOL has a lot of upside potential, so watch it closely on Friday.

Big Bounce for Low Level Oil Stocks. Keith Schaefer

The Most Shocking Chart In The History Of The Gold Market? Gold vs Gold Miners / Oct 8, 2015
With the Dow surging and gold and silver consolidating recent gains, King World News is pleased to share a piece from one of the greats in the business discussing everything from the action in the major markets to the FOMC, plus a bonus Q&A that includes questions on the gold market.  Also included are three remarkable illustrations, one of which may be the most shocking chart in the history of the gold market.

October 8 (King World News) – Overnight markets were essentially a nonevent, even as China played catch-up to world stock market rallies that occurred while that country was on holiday…

Range Resources Corp. (NYSE: RRC)

Range Resources Corporation, an independent natural gas, natural gas liquids (NGLs), and oil company, engages in the acquisition, exploration, and development of natural gas and oil properties in the United States. It holds interests in developed and undeveloped natural gas and oil leases in the Appalachian and Midcontinent regions. The company owns 7,582 net producing wells and approximately 1.4 million net acres under lease in the Appalachian region; and 653 net producing wells and approximately 383,000 net acres under lease in the Midcontinent region. In addition, it provides gas gathering and transportation from southwestern and northeastern Pennsylvania. The company sells natural gas to utilities, marketing and mid-stream companies, and industrial users; NGLs to natural gas processors or users of NGLs; and oil and condensate to crude oil processors, transporters, and refining and marketing companies.
Take a look at the 1-year chart of Range (NYSE: RRC) below with my added notations:
1-year chart of Range (NYSE: RRC)
RRC has been declining for most of the past year, especially over the last 5 months. However, over the past 3 months the stock has created a key price level to watch at $40 (red). As you can see, $40 was both support back in July, and resistance over the most recent 2 months. A break above that $40 level should mean higher prices for the stock.

The Tale of the Tape: RRC has a key level of resistance at $40. 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 $40.