A Second Chance to Buy China

If you missed the Chinese stock market rally last month, you now have another chance to profit...

 

Around four weeks ago, I told you why I was buying China. The Shanghai Stock Exchange Composite Index (the "SSEC") had fallen double digits and was sitting on a significant support line.

 

There was also "positive divergence" on the moving average convergence divergence (MACD) momentum indicator. In other words, as the index was falling to lower lows, the MACD indicator was making higher lows. So the SSEC looked poised to bounce. (more)

Whirlpool Corporation (NYSE: WHR)

Whirlpool Corporation manufactures and markets home appliances and related products worldwide. The company’s principal products include laundry appliances, refrigerators and freezers, cooking appliances, dishwashers, mixers, and other portable household appliances. It also produces hermetic compressors for refrigeration systems. The company markets and distributes its products under various brand names, such as Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Roper, Admiral, Affresh, Gladiator, Inglis, Estate, Acros, Supermatic, Consul, Brastemp, Indesit, Bauknecht, Ignis, Laden, Hotpoint, and Privileg. It sells its products to retailers, distributors, dealers, builders, and other manufacturers.
Take a look at the 1-year chart of Whirlpool (NYSE: WHR) with the added notations:

WHR has been trending lower since the beginning of March. Over the most recent 3 months the stock has repeatedly found support around $160 (green). Now that the stock appears to be falling back down to that support level again, traders might be able to expect some sort of bounce. However, if the $160 support level breaks, lower prices should follow.

The Tale of the Tape: WHR has an important level of support at $160. Traders could enter a long position at $160 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.

Hornbeck Offshore Services, Inc. (NYSE: HOS)

Hornbeck Offshore Services, Inc., through its subsidiaries, operates offshore supply vessels (OSVs) and multi-purpose support vessels (MPSVs) in the U.S. Gulf of Mexico, Latin America, and internationally. It provides marine transportation, subsea installation, and accommodation support services to exploration and production, oilfield service, offshore construction, and U.S. military customers. The company owns and operates a fleet of U.S.-flagged OSVs and MPSVs that support the deep-well, deepwater, and ultra-deepwater exploration, development, production, construction, installation, inspection, repair, maintenance, well-stimulation, and other enhanced oil recovery activities of the offshore oil and gas industry. It also operates a shore-base support facility located in Port Fourchon, Louisiana, as well as provides vessel management services, such as crewing, daily operational management, and maintenance activities for other vessels owners.
Take a look at the 1-year chart of Hornbeck (NYSE: HOS) below with my added notations:

HOS has formed a key support level at $16 (green) over the past two months. In addition, the stock is declining against a short-term, down trending resistance level (red). These two levels combined had HOS stuck within a common chart pattern known as a descending triangle. Eventually, the stock will have to break one of those two levels.

The Tale of the Tape: HOS is sitting at its triangle support. A short trade could be made on a break of support or on a rally up to resistance. A long trade could be made at support or on a break through the triangle resistance.

Tableau Software Inc (NYSE: DATA)

Tableau Software, Inc., together with its subsidiaries, provides business analytics software products in the United States, Canada, and internationally. The company offers Tableau Desktop, a self-service analytics environment that empowers people to access and analyze data independently; and Tableau Server, a business intelligence platform with data management, scalability, and security to foster the sharing of data, as well as to improve the dissemination of information in an organization and promote enhanced decision-making. It also offers Tableau Online, a cloud-based hosted version of Tableau Server; and Tableau Public, a cloud-based platform that allows bloggers, journalists, researchers, and government workers to visualize public data on their Websites.
Take a look at the 1-year chart of Tableau (NYSE: DATA) with the added notations:

DATA rallied strongly higher from its October low. Now that the stock has declined lower, the most recent month has found DATA hitting support at $90 (green). That same $90 support was also support earlier in the year, and it was also a resistance back in December. Now that the stock appears to be testing that support level again, traders should be able to expect some sort of bounce. However, if the $90 support were to break, lower prices should follow.

The Tale of the Tape: DATA has a key level of support at $90. A trader could enter a long position at $90 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.

Have Soybeans Really Bottomed Out?

Soybeans may have made significant lows, but it doesn’t mean there will be a big rally due to any fundamental information that we know now. As we look at what may happen at harvest and into 2016, it is very possible that soybeans can trade back down to the lows made when traders sold futures as soon as the September 11^th WASDE Report was released.

On September 11^th the low on the November 2015 soybean contract was $8.53 ¼. January 2016 was $8.57, March 2016 was $8.59 ¾ and July 2016 was $8.66 ½.  Unfortunately and unlike corn, there is not enough price increase to justify carrying, or storing soybeans from harvest into 2016. Unless there is a way to find free storage, or the spreads go to carry, it will cost to store beans after harvest.  (more)

Norfolk Southern Corp. (NYSE: NSC)

Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods. As of December 31, 2014, it operated approximately 20,000 miles of road in 22 states and the District of Columbia. The company also operates scheduled passenger trains; transports overseas freight through various Atlantic and Gulf Coast ports; and provides logistics services. In addition, it provides bimodal truckload transportation services primarily utilizing RoadRailer trailers, a hybrid technology that facilitates over-the-road and on-the-rail transportation in the eastern United States, as well as in Ontario and Quebec through a network of terminals.
Take a look at the 1-year chart of Norfolk (NYSE: NSC) below with my added notations:

NSC has been on a steady downhill slide over the past 10 months. During the last 2 months of the decline, and recent rally, NSC created a clear level of resistance at $80 (green), which had also been support prior. A break above that $80 level should mean higher prices for the stock, and yesterday NSC broke that level.

The Tale of the Tape: NSC broke through its key level of resistance at $80. A long trade could be entered on a pull back down to that level. However, a break back below $80 could negate the forecast for a higher move and would be an opportunity to get short the stock.

Ross Clark – Central Banks. James Corbett – China. Robert Campbell – Real Estate Bubbles