Wednesday, June 10, 2015

European Stocks Plunge To 4 Month Lows, Suffers Worst Losing Streak Since 2014

European stocks (Euro Stoxx 600) are down 8.45% from their April highs, down 6.15% in the last 9 days and are down 6 days in a row for the first time since December... In other words, either a) Q€ is not working as Draghi et al. say it is; b) Grexit contagion risks are anything but contained; or c) The European economy is not recovering as per the talking heads and investors are being slapped into that realization.


Q€ gains gone.
And don't try and claim that Bund yields are surging because investors think the recovery is here (or inflation is picking up).

Charts: bloomberg
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Tuesday, June 9, 2015

BNN Top picks from Eric Nuttall: Tamarack Valley Energy, Trinidad Drilling, and Grenville Strategic Royalty

Eric Nuttall, portfolio manager, Sprott Asset Management

FOCUS: Oil and gas stocks and small-cap Canadian equities

MARKET OUTLOOK:
The Canadian energy market has now entered its normal summer malaise while being generally unattractively valued, given the likelihood of a $65 per barrel ceiling price for the next several years. Patience (and cash) will likely be rewarded with a better entry point later this summer heading into the fall. Sometimes the best way to make money is to not lose it in the first place.
Non-resource small caps are generally fully valued as money continues to migrate/stay out of resource stocks. Boring low growth companies are being punted by private equity funds at extremely high valuations and new non-resource IPOs are 10 times oversubscribed. Both of these examples show how crowded the anti-resource trade has become and why valuations are currently unattractive.  (click here)

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Robert Prechter is Warning of a ‘Sharp Collapse’ in Stocks

Who is Robert Prechter, and why should investors care that he is warning them to be on high alert for a potential collapse in the stock market?
The president of Elliott Wave International, Prechter may not be a household name on Main Street, but he’s widely known on Wall Street as the foremost authority on the Elliott Wave principle, a forecasting methodology used by generations of technical analysts that is based on the belief that financial markets trend in five waves, and retrace in three waves.
Prechter is also the executive director of the Socionomics Institute, founded to study how those same wave patterns define changes in social mood and govern social events.
Continue Reading at MarketWatch.com…
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Stocks To Watch: ZIOP, TASR, IXYS, PBMD

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ZIOPHARM Oncology Inc. (NASDAQ:ZIOP) had a very nice session today, breaking out above the $10 level on decent volume. As long as it can hold this support area, it looks good. On the daily time-frame the MACD-histogram has been sloping up and the 100-day SMA has just ticked up to give a buy signal on the Impulse System. From here, we can expect a run to the $11.17 area and from there we could see an upsurge to $12 and better. Look to buy the stock on dips with a stop around 9.

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TASER International, Inc. (NASDAQ:TASR) broke through resistance and out of a bullish flag formation. Watch for continuation. Long on the break of Monday’s high at 33.17

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IXYS Corporation (NASDAQ:IXYS) Broke out to new highs today on High volume. I think we will see some nice follow through tomorrow.

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Prima Biomed Ltd. (NASDAQ:PBMD) held up well in the weak market. I believe the stock is basing here for a move higher. I expect to see a good upside move once the stock breaks through resistance now at $2.39

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Boston Scientific Corporation (NYSE: BSX)

Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. The company operates in three segments: Cardiovascular, Rhythm Management, and MedSurg. It offers interventional cardiology products, including coronary stent systems used in the treatment of coronary artery disease; coronary technology products to treat atherosclerosis; intraluminal catheter-directed ultrasound imaging catheters and systems for use in coronary arteries and heart chambers, as well as peripheral vessels; and structural heart therapy systems. The company also provides stents, balloon catheters, wires, peripheral embolization devices, and vena cava filters to diagnose and treat peripheral disease; and biliary stents, drainage catheters, and micro-puncture sets to treat, diagnose, and ease benign and malignant tumors.
Take a look at the 1-year chart of Boston (NYSE: BSX) below with my added notations:
1-year chart of Boston (NYSE: BSX)
Over the last 8 months BSX has been trending consistently higher, while also forming a nice trend line of support (green). Always remember that any (2) points can start a trend line, but it’s the 3rd test and beyond that confirm its relevance. As you can see, the market deems BSX’s trendline to be very important. In addition, the stock also has a 52-week high level of resistance at $18.50 (red).

The Tale of the Tape: BSX has a trend line support and an $18.50 resistance. A long position could be entered on a break above $18.50, or on a pullback to the trendline, with a stop placed below the level of entry. A short position could be entered if BSX were to break below its trendline.
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Monday, June 8, 2015

Exxon Mobile Stock XOM Breaks 28-Year Trendline


On March 24, we posted a rare piece on an individual stock. As we do not invest in individual stocks, they are typically not our focus. Therefore, it takes extraordinary circumstances to inspire a post on a single stock. That was the case with the March 24 post which noted the fact that Exxon Mobil (XOM), the world’s 2nd biggest stock, was testing a trendline that began back in 1987.

The origin of the trendline, based on a logarithmic scale of XOM, is the low point of the October 1987 crash. It then precisely connects the 1994 and 2010 lows. Interestingly, the stock stopped on a dime in March once it hit the vicinity of the post-1987 trendline. I say interestingly because, at the time, the stock appeared to be in no-man’s land. There were no obvious support or resistance levels in the vicinity. And yet, the stock stopped right on the trendline. It then proceeded to “walk up” the trendline for the next 18 days.

To those who dismiss the influence of technical analysis and charting techniques on the behavior of stocks as completely random, I can hardly think of a better example of counter-evidence than this. What are the odds that a stock “respecting”, or adhering to, a nearly 3 decade-old trendline is completely random – for 18 days? Furthermore, after bouncing off this trendline into May, XOM returned to it over the past few weeks. It spent 6 straight days sitting squarely (again) on the trendline…before breaking below it yesterday.

This breakdown marks the first day that Exxon Mobil has ever closed below this trendline. Now, assuming the stock’s behavior around the trendline is not completely random, and considering its capacity as the 2nd biggest stock in the equity market, the effect of this breakdown may be profound. Absent an immediate reversal back above the trendline, this loss of 28-year support would appear to open the door to more downside in the stock.
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Stocks To Watch: VJET, XONE, KITE, TASR



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Voxeljet AG (NYSE:VJET) has broken the upper line of a falling wedge, which was drawn during the last two months. Plus, the stock's MACD has also crossed above the signal line, which further confirms that the trend has switched from negative to positive which indicates that a rally is in progress and we should expect a move higher towards $8.72 where the 100-day EMA (pink line) is found. Note: Anthony Gerstein, Director of Investor Relations and Business Development will present at Stephens Spring Investment Conference in New York, NY on Wednesday, June 3rd, 2015, another catalyst for stock next week.


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ExOne Co (NASDAQ:XONE) is approaching a breakout point at the 13.50 level where it closed on Friday. A break above the 50-day EMA would lead to next targets in the 14.9 and then 16 area. The daily technical indicators are showing positive divergences. The MACD has moved above its signal line and the RSI is rising above the 50% level. Plus, the merged 13-day and 20-day EMAs are beginning to show an upward bias. I Really like the look of this daily technical chart...note earnings Jun 11 AMC.


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The strong move in Kite Pharma Inc (NASDAQ:KITE) shares. The stock price broke out of a Bullish flag chart pattern accompanied by strong volume. I think we will see a nice follow through next week. This momentum could push this stock much higher from here. Next resistance is now seen at $66.40.

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On watchlist no trigger yet. TASER International, Inc. (NASDAQ:TASR) continues to consolidate in a very tight range. Long above $33. The stock has been in a nice uptrend for the last three monts and it looks very strong with the Key EMAs going up. There is plenty of accumulation on daily chart. Use the 50-day EMA as your stop-loss.

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