Brazil iShares Fund (EWZ): A Second Chance to Profit on Brazil

If you want to profit from the falling dollar, look no further than Brazil...

 

On Tuesday, I explained that the dollar bounce is about to end. After rallying for the past two weeks, the dollar is now overbought... and ready to resume the downtrend it started in March.

 

And just like in April, one of the simplest ways to take advantage is by buying Brazil...

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Kythera Biopharmaceuticals Inc (NASDAQ: KYTH)

Kythera Biopharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of prescription products for the aesthetic medicine market in the United States and internationally. Its product candidate ATX-101, is an injectable drug in late-stage clinical development for the reduction of submental fat. The company also maintains research interest in hair and fat biology, pigmentation modulation, and facial contouring. It has a collaboration arrangement with Bayer Consumer Care AG and a related collaboration agreement with Bayer Consumer Care AG’s affiliate, Intendis GmbH to develop and commercialize ATX-101 outside the United States and Canada.
Take a look at the 1-year chart of Kythera (NASDAQ: KYTH) below with my added notations:

KYTH rallied from October up until its March peak. From there, the stock has traded mostly sideways, with the exception of the May dip. Over the course of that sideways move KYTH has created an obvious resistance at that $52 level (red). A break above $52 should mean higher prices for the stock.

The Tale of the Tape: KYTH has a key level of resistance at $52. 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 $52.
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Chart of the Day - Spirit AeroSystems (SPR)

The Chart of the Day belongs to Spirit AeroSystems (SPR).  I found the stock by sorting the All Time High list for the stocks with the best technical buy signals then used the Flipchart feature to review the charts.  Since the Trend Spotter signaled a buy on 5/8 the stock gained 4.93%.

Spirit AeroSystems (SPR) is the world's largest independent supplier of commercial airplane assemblies and components. In addition to its Kansas facility, Spirit has operations in Tulsa and McAlester, Okla., Prestwick, Scotland, and Samlesbury, England. In the U.S., Spirit's core products include fuselages, pylons, nacelles and wing components. Additionally, Spirit provides aftermarket customer support services, including spare parts, maintenance/repair/overhaul, and fleet support services in North America and Europe. Spirit Europe produces wing components for a host of customers, including Airbus.

• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 11 new highs and up 9.07% in the last month
• Relative Strength Index 71.48%
• Barchart computes a technical support level at 54.75
• Recently traded at 56.02 with a 50 day moving average of 52.61

Fundamental factors:

• Market Cap $7.71 billion
• P/E 14.67
• Revenue expected to grow 3.00% next year
• Earnings estimated to increase 8.70% this year, an additional 5.20% next year and continue to increase at an annual rate of 12.40% for the next 5 years
• Wall Street analysts issued 6 strong buy, 5 buy 5 hold a 1 sell recommendation on the stock

The 100 day moving average vs the price has been a reliable technical trading strategy on this stock.

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Bank of America (NYSE: BAC) and Citigroup (NYSE: C): Breakouts Signal 'Buy' Now

It's been a long time, eight years in fact, since we were able to say with a straight face that Bank of America (NYSE: BAC) and Citigroup (NYSE: C) were good investments.

Moody's (NYSE: MCO) has already picked up on improvements in their bonds with low investment grade ratings of Baa2 for each. But now the charts tell us that their stocks have also proven themselves and may be ready for further gains.  (more)


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Stocks To Watch: VLTC, SGMO, CHOP, CBAK

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Voltari Corp (NASDAQ:VLTC) starts showing buy signals again. The latest candle is a strong bullish engulfing candle on massive volume and it is most likely that the stock will continue its move up. For now, expect a run up to next major resistance area around $10.8. Support lies around $7

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Shares of Sangamo Biosciences, Inc. (NASDAQ:SGMO) are starting to heat up again and are worth watching. If volume can pick up I believe this stock can break through resistance at $13.94 and re-test its recent highs around $16.

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Thin name but with a nice looking chart. If China Gerui Adv Mtals Grp Ltd (NASDAQ:CHOP) can break out above $2.32 (20EMA) on volume, I think the stock could shoot up to test $3. There looks to be good upside potential, so watch the stock very closely on Thursday. 

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China BAK Battery Inc. (NASDAQ:CBAK) is trapped between the 50-day exp moving average and the 200-day exp moving average. I feel a big move is coming within the next few sessions. MACD is about to trigger a buy signal with RSI pointing upwards.

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GAMCO Global Gold, Natural Resources & Income Trust (NYSE: GGN): 12% Gold Dividend

• Gold prices fell below $1,400 an ounce in May of 2013. And they've been between $1,100 and $1,350 ever since. Two years... that's a pretty long time for any asset to consolidate. But gold isn't just any asset. Gold bugs say it's the only reliable currency because its value can't be debased by central bank actions like paper money.

Gold detractors like Warren Buffett say gold has no utility and therefore should be valued in the same way companies are.

Companies can grow by selling more product and can earn more in profit by increasing efficiency. Gold can't do that. Gold is basically dependent on the U.S. dollar for its value. 

However, gold mining companies can increase revenue by selling more. And they can earn more profits by increasing efficiency. I can't tell you what gold prices are going to do. But gold stocks look pretty good right now...

Barrick Gold (NYSE: ABX) was a $50 stock in 2011. Today it's around $12. The last time it was below $12 was 1992.

Newmont (NYSE: NEM) broke briefly above $70 back in 2011. It's around $27 now after briefly dropping below $20 last December. You gotta go back to 2000 for the last time that happened.

Seems to me it's a good time to own gold mining stocks. The upside will be explosive when it comes. But instead of buying one particular miner, why not buy them all? With the GAMCO Global Gold, Natural Resources & Income Trust (NYSE: GGN), you can. This closed-end fund run by Mario Gabelli's GAMCO holds all the most important gold miners. It's a little over $7 a share and will pay you nearly 12% a year in monthly dividends. The fees are not too bad either, at 1.25%.

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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 the added notations:

Like most energy names, RRC declined persistently into the beginning of the year. The stock then formed a double bottom price pattern, and then confirmed that pattern in April. The double bottom pattern, and confirmation, formed a $55 price level (blue) that has become important to the stock. Not only was the $55 mark the resistance point between the two bottoms, but that level was also support after the stock broke higher in April.

The Tale of the Tape: RRC has a key level at $55. A trader could enter a long position on a pullback down to $55 with a stop placed under the level. However, if the stock were to break back below $55, a short trade could be made instead.
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