Friday, October 8, 2010

MON- Monsanto- Is it ready for a big run? Is it turning around?

MON- MONSANTO- Is it a good buy? Highly respected, and hated at the same time, Monsanto chemicals stock has fallen significantly over last many months from a high above $140. The stock has one rebound over last few months. Then it dropped again. Over last 3/4 days, it has two strong REVERSE (BUY) Signals. This is also a higher bottom. Seems like a nice trading opportunity with stoploss at 46.50. For investors, looks like a game of 6 dollars loss vs $ 50 profit potential. Good buy with a stoploss at $43.

Thursday, October 7, 2010

Gold, GLD- Are the golden days over for Gold today? Pro

Gold, GLD- Are the golden days over for Gold today? Probably yes.

The Gold ETF- GLD- is showing a strong trend reversal today. It is a text book (Profit From Prices) style U-TURN signal today. This signal occurs after a sustained bull run. Today volume is also very high.
If you are curious to learn my favorite Trend Reversal signal U TURN (SELL) signal, please click here.

Once can go short with stoploss at today's high prices. Target price is around 108 (until the stoploss is triggered)

Update: October 19, 2010.
As per Profit From Prices, when a chart is in a strong run, the first strong Trend Reversal signal is sometimes not sufficient but if another strong trend reversal signal happens within few days, it should be taken as a good confirmation for trend reversal.
The same has happned in GLD today. It opened with a downward Gap. (Wish yesterday, GLD had made a new High, I would have FREE FALL (Sell) signal)). Today's price movement is strong and if volume is also abnormally high, this should add confidence for trading gold/GLD short.

 Important: However good somethings appears, one should always protect trading positions with Stoploss.

Friday, August 27, 2010

DIA- Nice confirmation of the bullish trend over next few days/weeks

Two days back, there was a nice REVERSE (Buy) signal in stocks and indexes. Today many of them came close to touch those previous bottoms but then successfully (and very powerfully) reversed the trend. Though no new bottom was created today, I take this as a powerful confirmation of the end of the bear market of last few days.

Here is the chart of DIA. You should be able to see a powerful reversal on it.
It is time to go long with stoploss at today's low prices.

Wednesday, August 25, 2010

DIA, SPY, QQQQ- Are they turning up for next few days/weeks?

Is market turning up for short to medium term? Yes, there is a REVERSE (BUY) signal in most stocks today so one can trade bullish with stop loss at today's low prices. If you are still bearing overall, book profit after a 5 % rise of current levels.

Sunday, May 30, 2010

MON- Monsanto Co- Very nice Trend Reversal Signal

Buy MON on Monday?
Monsanto Co stock chart is pretty interesting. Two days ago, on Thursday, May 27, it gave a very nice REVERSE (Buy) signal.
Not sure what was the news but it there must be some news for that day's price movement. MON opened down with a Gap and kept going down. Then suddenly, it reversed its trend and managed to close where it opened. The volume was distinctively high. This is a text book style REVERSE (Buy) signal (Text book referred is 'Profit From Prices' LOL).

If someone is trading/investing in this stock, please keep a stoploss at $48.

Friday, May 21, 2010

Nice timing by the one who collected all these signs of a maturing bull market

Nice timing by the one who collected all these signs of a maturing bull market..

C- Citibank--- Is Citi waking up (Not sure if they still use the line- Citi never sleeps but...)

C- Citicorp stock is trading down again... From a low of $3.11, it touched a high of $5.07 and now it is back to $3.50 range.
Today, there is a nice U TURN Signal. Wish volume was distinctively higher. Anyway, U Turn as always is a powerful trend reversal signal. The overall market has turned pretty weak recently so I am guessing that careful traders can wait for one more trend reversal signal or a confirmatory signal. I am going to keep watching C- the Citi stock again.

For those who are not familiar with U TURN signal, please look here for the detailed writeup about this powerful stock trading signal:

Monday, May 3, 2010

TSO- Tesoro Petroleum- Refinery stocks- are they good buys?

TSO- Tesoro Refinery stock.
On the weekly chart, Tesoro stock has a very nice trendline/resistence line. Chances are it will break upwards.
For traders and investors interested in cyclical stocks, refinery stocks are worth watching.
If the breakout occurs in TSO, it should be traded with a stoploss just below the exntended trendline. This industry has been in bust for last few years and when the fortunes changes, these stock can return 200-300% return over a year or two.
(The Crude Oil is in interesting stage. At $90, its technical requirements can be met for the great drop from $145 level to low $30s level, assuming 50% retracement. Anyway, if the Oil goes down, the margin for the refiners should improve)

As always, keep a stoploss if you enter into this stock. Also there is no trading signal right now. Just watch it and act when it breaks the trend line from below. Then stay long, as long as the prices are above the extened trend line or risk 10% loss from your purchase price- no more.

Tuesday, April 27, 2010

Looks like signs of a mature bull market!!

Bullish Sentiment on the Rise: Is It Time to Get Worried ... or Get on Board?

Posted Apr 27, 2010 08:15am EDT by Aaron Task in Investing


Sentiment is always tricky to measure - and something of a Rorschach test - but with the Dow up 71% from its March 2008 lows, the inevitable has started to happen: Bullish sentiment is rising.

Anecdotally, at least, the migration from investor "disbelief" in the rally to "acceptance" (if not "embrace") can be seen in a number of recent indicators, including:

* -- Newsweek's "America's Back" headline.

* -- An "S&P 3000 by 2020" prediction on Tech Ticker.

* -- A WSJ story about rising bullishness among technicians, featuring a prediction from Lowry's Paul Desmond's that "we could easily be getting into a speculative advance here, a real momentum move."

* -- A modicum of towel-tossing by noted bears such as Jeremy Grantham of GMO. In January, Grantham said the S&P was fairly valued at 850. In his most recent quarterly letter, the famed investor writes "the line of least resistance is a market move in the next 18 months or so back to the old highs, say, 1500 to 1600 on the S&P, accompanied by an equivalent gain in most risk measures, followed once again by a very dangerous break."

* -- A Bloomberg story about stocks being the cheapest since 1990, excluding the 2009 market trough.

* -- Rising optimism among private sector trade groups surveyed by the National Association for Business Economics, as detailed here.

Read full story at:
Bullish Sentiment on the Rise: Is It Time to Get Worried ... or Get on Board?

BSX-- Something good happening at last?

BSX- Boston Scientific Corp

Not sure what is happening fundamentally but recently the stock is rising after some bad news. Today the overall market melted. Dow was down 200 plus points. BSX also opened lower but during the day, climbed up and closed strong.
Worth keeping on the radar.

As always, keep a stoploss in your trading.

Thursday, March 25, 2010

IXIC, DIA- Market Reversal?

There has been a nice turn-around in the sentiment. Stocks moving up nicely. Dow and IXIC (NASDAQ index) making new highs during the day but towards close, the markets turned bad and closed slightly lower. Nice REVERSE (SELL) signal as per Profit From Prices theory.

MACD also trying to crossover. I guess it is time to book profit be light or go even short with stoploss at today's High.

As always, if trading, trade with stoploss.

Monday, February 22, 2010

PEIX- Pacific Ethanol- Is this run-up phase 3?

PEIX- Pacific Ethanol- Is this the start of the run-up phase-3?
Something is cooking in this stock. Every run-up has 3-4 days of 100-200% appreciation so far.
Is the "two repeatitions" a statistically strong indication for the third to happen? We will see over next few days.
Game plan? Buy now with a stoploass at today's low price (Stoploss at $1.89) hoping for another spell of nice 2-3 days....

As always, do not dream big money without anchoring to the stoploss LOL. One thing is sure- there are no free lunches in financial markets and potential for exceptional profits require abnormal risks.

Thursday, January 14, 2010

NVAX Novavax---Just chart

NVAX- Novavax-
* I have not looked at any news or any fundamental thing about this. Someone asked me to look at this stock, so I just looked at the chart.
* I hate bio-tech small caps. I don't know who would consistently makes money in them.... The FDA stuff and phases of approval and cash burning, prospects of the approval and billion dollar prospects on paper.. I think on average it is better to pass them for people who are not related to medical field. I think these stocks are good for insiders...My point is: be very careful.

Now let us talk about the chart/prices. From the low of 54 cents last year, it jumped to a high of 7.79. Then started crashing with a text book style Island Reversal. Only recently it popped out of its resistance line and today it is touching it back.
Moral of the story: Can be traded at current price of 2.69 with a very very strict stoploss at 2.50. Mind well that stoploss sometimes are useless for small caps and biotech in particular- because the price can just open in gap with a 50% drop too.
So for weak hearts, it is better to forget about this stock and the chart.

C: Trade with a 10 cents risk- citicorp stock

C- Citibank, Citicorp stock- should one buy this stock? It is a million dollar question. If you decide to buy, in one year, you can brag about it or regret..If you do not buy it now, in one year, you can regret or label yourself as a smart investor. I think this is true for any stock but I guess this is very important about C right now.

What the prices are telling me?
It is between a longer term resistance line and short term support line. The 'new offering day' low was a key reversal day so this is a real tug of war on the chart.
Investors- better wait and watch for 10 more days. Traders? Think of options or a gamble 10-20 cents for 5 to 10 times return.
This boring stock seems to be dying for some action

Update (January 19,2010): Citibank announce numbers- it is loss. The stock opened lower, touched 3.40 and now it is trading in positive. This is REVERSE (Buy) as per Profit from Prices. Let us hope it closed in positive.

Flag Pattern SIRI?

SIRI seems to form a Flag pattern. I am buying some for a jump to 80 cents within a week or so. Exit strategy below 65 cents.