Stocks To Watch: $X, $RBCN, $VVUS, $AERI

United States Steel Corporation (NYSE:X) finally rebounded on heavy volume. This could be the start of a trend reversal for the stock, which is why I will be watching again the stock on Tuesday. Next resistance is $11.59, which was Monday’s high of the day. If the stock breaks through, there is a good chance you will see a strong upside move, so watch the stock very closely tomorrow. Plus, MACD triggered a bullish crossover.

Rubicon Technology, Inc. (NASDAQ:RBCN) might be close to squeezing some shorts based on the recent price action. The stock is on the verge of breaking out of a base formation and it could happen tomorrow. Once it breaks $1.08, jump in and watch RBCN take off. The stock is now trading significantly below cash and book value. With an improving RSI and a bullish stochastic crossover, I have a feeling that it will break higher shortly.

VIVUS, Inc. (NASDAQ:VVUS) daily chart is very promising. The stock coube be gaining momentum to break to the upside. Keep an eye for a possible breakout over $1.77

Aerie Pharmaceuticals Inc (NASDAQ:AERI) surged in the final hour of trading and closed back over the 200-day exponential moving average, which is very bullish for an upside move. Keep a close eye on AERI for Tuesday.

Canadian Dollars Are About To Explode Higher

Canadian Dollars have been one of my favorite shorts around the world for a long long time. We are talking about one of the most beautiful bases I’ve ever seen in my career. The old sayings are, “The bigger the base, the higher in space” and, “The bigger the top, the bigger the drop”. I learned these from technical legend Louise Yamada who told me she picked these up from Alan Shaw, retired technician and legend in his own right. In the case of Canadian Dollars, the big top took place between 2009-2013, while the huge base could be seen in USD/CAD but both had the same implications (see base here). All targets have been achieved and now I believe it’s time for a change in direction.  (more)

Allergan PLC (NYSE: AGN)

Allergan plc develops, manufactures, and distributes generic, branded, biosimilar, and over-the-counter (OTC) pharmaceutical products. It operates in three segments: North American Brands, North American Generics and International, and Anda Distribution. The North American Brands segment provides patented and off-patent trademarked pharmaceutical products primarily under the Dalvance, Bystolic, Canasa, Carafate, Daliresp, Fetzima, Linzess, Namenda, Namenda XR, Saphris, Teflaro, Viibryd, Actonel, Asacol HD, Atelvia, Delzicol, Doryx, Estrace Cream, Enablex, Lo Loestrin Fe, and Minastrin 24 Fe brands. The North American Generics and International segment develops, manufactures, and sells generic, branded generic, and OTC pharmaceutical products. The Anda Distribution segment distributes generic and brand pharmaceutical products primarily to independent pharmacies, pharmacy chains and buying groups, and physician’s offices.
Take a look at the 1-year chart of Allergen (NYSE: AGN) with the added notations:

AGN rallied over 60 percent from its October low. After peaking at $340, the stock started a decline that now has the stock trading below its key level of $280 (blue). AGN is now undergoing a rally that will most likely bring the stock back up to that $280 level.

The Tale of the Tape: AGN broke a key level of support at $280. A trader could enter a short position on any rallies up to or near $280 with a stop placed above the level. If the stock were to break back above the $280 level, a long position might be entered instead.

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.

Fundamentals:
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: http://finance.yahoo.com/q/ks?s=RC.TO

Technicals:
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
MONDAY, OCT. 5
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
WEDNESDAY, OCT. 7
3 pm	Consumer credit	Aug.		--	$19 bln
THURSDAY, OCT. 8
8:30 am	Weekly jobless claims	Oct. 3		271,000	277,000
2 pm	FOMC minutes	Sept. 17
FRIDAY, OCT. 9
8:30 am	Import price index	Sept.		--	-1.8%
10 am	Wholesale inventories	Aug.		--	-0.1%