Traders Corner   7 comments

The S&P 500’s technicals are moving into overbought territory, although not so overbought that it “must” go down. However, since the futures are down a little this morning, and if we get a drop today, it could relieve the technicals a little.

The S&P 500 levels to watch today:

UPSIDE: 1654 (July 9th’s high and June’s high), and 1660 (top of the Bollinger Bands).
LAST CLOSE: 1652.
DOWNSIDE: 1644 (July 8th’s high), 1642 (July 9th’s low), 1634 (July 8th’s low), 1632 (July 5th’s high), 1628 (50 day moving average), 1622-1626 (9 data points), 1618 (July 3rd’s high), 1617 (20 day moving average and the 10 day moving average), 1614 (July 5th’s low), 1606-1610 (2 data points), 1604 (July 3rd’s low), 1597 (April’s high), 1581 (May’s low), 1575 (bottom of the Bollinger Bands), 1572 (March’s high), 1560 (June’s low), 1536 (April’s low), 1530 (February’s high), and 1515 (200 day moving average).

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Posted July 10, 2013 by edmcgon in Daytrading, Investing, Market Analysis

7 responses to “Traders Corner

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  1. One of my stocks, NUS, increased guidance significantly last night. They are up 13% this morning in early trading. If that holds, I will be up 80% since buying in February. Funny thing is that even with that run up, they are not that expensive. They are now projecting to earn 4.85 to 5.00 per share for the year, which works out o north of 2.70 for the second half. For a $75 stock with strong balance sheet, decent dividend and growing at a nice clip (over 20% projected in 2013), I certainly see more upside. Especially if momentum traders start piling on.

  2. Sold upro 68.50. May still go up

  3. Very solid day for me, helped by NUS going up over 12% and BBEP up over 4%. Overall, I am up 43 basis points and am starting to get back within striking distance of R3K for the year. I am now up 15.8% for the year versus 17% for the index. My recent flurry of transactions have worked out pretty well since we started to have minor correction in June. My average buy is up almost 3%, with HIG-WT (16.9%) and BBEP (14.8%) being the big winners. Still sitting in 21% cash. Would love to buy PNC and NSC, but starting to believe those ships have sailed. I am studying a group of five stocks to buy in mid August (every quarter I buy five stocks to hold for a year) for my Magic Formula Portfolio. Leading candidates are CF, FLR, KLIC, CYOU and NSU but there is still a month to go and a lot could change.

    • Marshall, here’s my own unsolicited 2 cent opinions:

      FLR is a boring but very safe stock.

      CF looks interesting. Love their margins!

      There’s something about KLIC I don’t like. Probably their earnings going down…

      CYOU? A Chinese company? Good luck with that…

      As for NSU, although I love gold, I don’t love miners. That said, NSU does look better than most miners.

  4. Ed – here is my four cent response.

    FLR is a bit boring, but we are going through a secular natural gas revolution. And they (along with CBI) are well positioned to help build out LNG terminals. I do not believe that is baked into their price right now.

    CF just makes money. As long as natural gas (their largest cost) remains cheap, they will continue to have a material advantage over non US fertilizer companies.

    KLIC is a profitable company. As you point out, earnings are down a bit past twelve months, but I believe CAPEX spending will start to rebound as economy improves. They also have an ungodly 6.63 in cash per share on balance sheet with zero debt.

    CYOU is Chinese, but this is not one of those questionable reverse merger stocks. They are owned in part by SOHU, which is a legit Chinese company. They are trading at under 6x earnings, they have 200m of excess cash on balance sheet and they are growing top line by double digits.

    NSU is a miner. They are certainly out of favor. While they have historically been a gold miner, that will be switching later this year to a lot more copper. They have a market cap of 570m and have 335m in cash with no debt. The downside here is very limited. They are a 2.87 stock and will be making between 30 and 60 cents per share going forward. Can you spell c-h-e–a-p? Writing this makes me want to buy some more shares right now.

    • Marshall,
      The only thing I’d disagree with you on is CYOU. Even if a Chinese company is legit, and Baidu is about as close as I’ve seen to a legit Chinese company, do you really want to bet on the Chinese economy right now?

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