Usually as the price of oil goes, so goes the price of Crude producers like Exxon Mobil and Chevron. As you can see from the chart below, over the last 30 days, Chevron has gone up in price, but USO has actually gone down. This is a bearish divergence for Chevron and one that makes for a good trading opportunity. (more…)
COF – It’s In Your Wallet, Should It Be In Your Portfolio?
Back on January 17th Capital One Financial (COF) missed the consensus estimate from their Q4 earnings report and lowered their revenue guidance for FY 2013. Consequently, the stock has shed 18% thus far. As the market oscillates near its historic highs, this does not at first blush seem to make for a compelling buy. Financials in aggregate are up 8.5% YTD while COF, the 6th largest bank in the US, is down -12.3%. (more…)
Long Anglogold Ashanti on rumors of labor negotiations
I see a positive divergence in Miners today, with Gold trading slightly off. I ran a screen on finviz looking for Gold miners with ROE 10% and above. Then sorted the list according to RSI to find the outperformers and the underperformers. If we want the largest possible return in a short period of time, playing the underperformers that are setting up well technically is the best chance for a high risk/reward play. I noticed the African miners (GFI, AU) to be the underperformers, and the US and Canadian miners to be outperformers. Africa is having some serious labor problems over fair pay, and GFI and AU have had to shut down some of the operations due to it. Well news came out this morning from the WSJ that the miners are going to begin talks next week to try and resolve the differences. So on that news, i think we have a tradeable bounce in AU that we could play. AU is at the center of the controversy since they’ve had the biggest impact so why not play the name that has had the biggest negative impact to date, hoping that some prospects for relief could interest investors in buying AU at these oversold levels. (more…)
Long Stratasys – buying the dip
Stratasys is a stock that has been getting pummeled for the last month or so. I actually posted a bearish trade idea on Learning Markets about SSYS, which was well timed, though poorly executed on my part, having chosen to close the idea too soon. (more…)
Volkswagen VLKAY: The Flipside of a European Crisis
Note: This is a post from our weekly stock selection email published by InvestorPlace Media. If you like it – you can sign up for email alerts like this each week. We will also be publishing them on our site here. (more…)
Upside China GDP risk exposure – long CEO
Prices of CEO have been on a recent decline with fears of Asia growth slowing. Morgan Stanley came out a few days ago and upped their China GDP forecast to 9 pct supporting a soft landing scenario. CEO has some good support at $200 and prices gapped up today off that level, making this a nice entry point