Navivest Stocks and Options Blog

Technical Trader – Cummins Inc

Jul 21, 2010 Options, Stocks, Technical Analysis

Cummins Inc (CMI) is up $1.51 to $74.05, currently one of the strongest performers among S&P 500 stocks. However, the stock will form a double top if continues to advance and hits its next resistance area of $75. Traders might want to look at shorting the stock above $74.50 or selling call the September 85 calls, which are asking $1.20.

Tags: cummins inc, options writing, sell calls, Technical Analysis

Buy Stocks Here On Rebound Expectation

Jun 25, 2010 Stock Market, Stock to watch, Technical Analysis, Trading Idea

With the exception of Wednesday when we had a small move to the upside, the major indices have been down every day this week and today we are also seeing some weakness in stocks. However, we are looking for a rebound and traders can start buying here for some quick profits today.

In early afternoon trading, Wynn Resorts (WYNN) is up $0.87 to $86.90 and we are looking for some more upside in the shares. Yesterday, we sent out a buy trade alert to subscribers of our Navivest Options Capitalist service on the Wynn July 90 calls.

We also like commodity related stocks, which while already up on the day, should see some more upside. In the space, we like Freeport McMoRan (FCX), which is only up $1.26 to $64.70.

Tags: commodity stocks, freeport mcmoran, Stock Market, Stocks, wynn resorts

The Technical Trader – United Technologies

Apr 22, 2010 Stock to watch, Technical Analysis, Trading Idea

Yesterday, with the major indices barely closing to the upside, Dow component United Technologies (UTX) had a big day, climbing $2.73 or 3.68% to $76.93. The stock is squarely above its 50 and 200 day moving averages and should the stock market continue its slow but steady climb to the upside this week, traders should be able to scalp a few more upside points in the shares.

This is a short term trade and traders should look to take very early profits of $1.50 to $2.50. Enter only if the Dow is moving to the upside today.

Tags: united technologies

Stock To Watch – Phillips Van Heusen

Apr 22, 2010 Stock to watch, Stocks On The Move, Technical Analysis

On March 15, shares of apparel company Phillips Van Heusen (PVH), gapped higher at the open, starting the day at $52, from the prior day’s close of $47.74. The stock advanced on news that the company was acquiring Tommy Hilfiger. Since then through yesterday, the stock has risen an incredible 25.26%, dramatically outpacing the overall stock market.

The shares gave up some of those gains in the three sessions prior to yesterday, closing lower on Friday, Monday and Tuesday.

Yesterday, the stock turned around and broke above a very short-term trading range and it looks like we may see another wave of continued upside moves.

Tags: phillips van heusen

Trade of The Day – Short EOG Resources, Buy Puts

Apr 19, 2010 Stock to watch, Technical Analysis, Trading Idea

Oil and gas producer EOG Resources’ (EOG) shares have been a very strong performer the past three weeks and the stock is now overbought. We are looking for some weakness in the shares and if oil prices are up less than a dollar on Monday, we would short the stock here, or buy the May 2010 105 puts.

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Tags: eog resources, trade recommendation

The Technical Trader – Northern Oil And Gas

Apr 5, 2010 Technical Analysis, Trading Idea

Shares of Northern Oil And Gas (NOG) have been on an uptrend the past five sessions, closing higher everyday in each of those sessions. The stock, which had traded in a tight range between $11.66 and $13.68 for almost two months, broke out of that range on 3/26 on a notable increase in the stock’s trading volume, which has continued.

With the momentum in the stock, we should continue to see some more upside in the stock.

Navivest provides subscription-based trading recommendations. More information on our services can be found on our website at http://www.navivest.com

Tags: northern oil and gas, tehnical analysis

Amazon Extends Downward Trend

Mar 24, 2010 Technical Analysis, Trading Idea

On February 26, Amazon (AMZN), which had traded sideways since the first of February, began a sustained upward climb that saw the stock close higher everyday but one through March 11.

On March 11, the stock closed at $133.58. The next day, the stock hit a high of $134.20, but closed at $131.82, a negative signal, considering the recent bull run. During the trading day on March 12, we sent out an alert to subscribers of The Options Capitalist, that they purchase the April 130 puts as we felt the stock had hit a near term top.

Since then, the stock has slowly trended downwards, closing today at $128.04.

We would have liked to see the stock close below $128, which would have been a breakdown of near-term support. If the stock holds above $128 tomorrow, we will be closing out the position.

With a hold above $128, Amazon could rebound a bit although we do advocate caution. The market is still due for a correction and the Greece story keeps getting worse and now Portugal is coming to the forefront with its problems.

Tags: amazon, amzn

The Technical Trader – Genzyme

Mar 21, 2010 Technical Analysis, Trading Idea, Uncategorized

Biotech company Genzyme (GENZ) had the second best performing stock among S&P 500 stocks on Friday (Precision Castparts was the best performer with a $2.44 move to $121.79), climbing $1.98 or 3.45% to $59.39. The shares traded 4.6 million shares, compared to a most recent three-month average of 2.6 million shares.

On January 5, the stock, which had been in a downtrend since October, hit a bottom of $48.18, and started rebounding. This was a very bullish signal, as the stock had long-term support at $48, which was maintained. The stock has tested or fallen to the $48 area four times going back to August and each time, the shares bounced off that area.

Since the January rebound, the stock has had a nice upward formation, culminating in Friday’s decent move.

GENZ is once again butting against resistance, but we would look for short-term buying opportunities. If the shares are moving to the upside, we would enter and look to capture two to three points.

The April 57.50 calls are asking $2.85 and a $1 move to the upside from here on Monday or Tuesday could mean a better than 40% gain.

Navivest provides subscription based trading advisory services and newsletters for options, equity and ETF traders. More information on our services can be found on our website at http://www.navivest.com

Tags: genzyme, Technical Analysis

The Technical Trader – Sterling Construction

Mar 17, 2010 Technical Analysis, Trading Idea

Sterling Construction

On Monday, before the stock market open, Sterling Construction (STRL) reported earnings that disappointed Wall Street. The stock gapped down, opening at $18.44, from a close of $21.15 the Friday prior and ended the session at $17.64. On Tuesday, there was further erosion of the company’s market capitalization, as the stock lost another $1.59.

On Wednesday, on an upgrade from KeyBanc Capital Markets, Sterling Construction rose $1.50 to close at $17.55, an incredible one-day gain of 9.35%.

With the turnaround, the stock is giving off some bullish technical signals, which could be a signal that there are some nice quick profits to be had in the shares. The $16 area is a key support area, which we did not want to see violated and while the stock did hit an intra-day low of $15.91 on Tuesday and $15.56 on Wednesday, the stock closed above this key area on Wednesday.

Sterling Construction may look to break above $18 and hit $19 near-term, which would be an 8% gain and while we would look for major resistance at $19, we may even see some more upside in a bullish stock market, as the stock looks to fill the downside gap created this week.

This would be a short-term play and a long trade should be initiated only if the stock is moving to the upside. Upon entry, we would look to take quick profits, exiting the trade on a 5% gain.

Tags: sterling construction, Technical Analysis

Potash Corp Shares Could Be A Buy At Current Levels

Mar 12, 2010 Company News, Earnings, Stocks On The Move, Technical Analysis

Fertilizer maker Potash Corp of Saskatchewan (POT) added $8.34 or 7.13% to $125.27 on Friday March 12, after the company on Thursday evening, raised its current (first) quarter guidance to $1.30-$1.50 per share, which is a substantial improvement from the company’s own very recent estimates of $0.70-$1.00 per share, that was provided just six weeks ago, on January 28.

With analysts bound to question why the company would revise so sharply in so short a period, the company’s explanation was, “the upward revision reflects a sharp rebound in potash demand that is expected to drive a record quarter for North American sales volumes and strong offshore shipments, as well as higher-than-expected margins in nitrogen and phosphate.”

The dramatic improvement in the company’s fortunes, make the shares a buy, although we are now against resistance, with a double top formation in play at current levels. As such, we would look for a break above current levels, before going long the shares.

Tags: potash, potash corp of caskatchewan