Navivest Stocks and Options Blog

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

Trade Of The Day – Commodity Stocks

Mar 30, 2010 Uncategorized

With other major currencies beginning to recover against the U.S Dollar, traders might do well to look at commodity stocks. On Monday, with the news that the European Union had reached an agreement over Greece, the Euro climbed against the dollar and that sent commodity prices rallying, resulting in big one day gains in copper, gold, coal and other commodity stocks. We would look for more of the same today.

If stock market futures are up throughout the morning, the stock market opens to the upside and the dollar is down against the Euro, buy commodity related stocks at the open. Our two favorites right now are Freeport McMoRan (FCX), a gold and copper miner and Bucyrus International (BUCY), which is actually a mining equipment manufacturer.

Both stocks have options on them and for traders looking to maximize profits, buying at the money or in the money calls could be the way to go. We would want to see FCX break above $84, else do not enter into the trade. If the broader markets are doing well, we would also look at Caterpillar (CAT).

Once in, look to take very quick profits. While this slow but steady rally has been very impressive and looks to continue, we are severely overbought and could see a pull back on technicals any day now. There is also the risk that we could get more bad news that sends the markets reeling. So take early profits and trade with caution.

Navivest provides stock and options trading recommendation services. More info on our services can be found here.

Tags: bucyrus international, commodity stocks, freeport mcmoran