Earn It – Q2 2011

Time to check in on earnings this quarter to see how things are going. Above is a breakdown of earnings growth rates.

For a complete read on where things stands, get comfy and read this:

www.factset.com/earningsinsight

 

Other information on earnings can be found below (not comprehensive, but a good place to start).

http://earningswhisper.com

http://www.earnings.com

http://biz.yahoo.com/research/earncal/today.html

 

 

The RSI Buy – the Series

I have several examples of clean RSI buy candidates today but I’ve chosen TWI (Titan International) as it has provided several opportunities this week. Here is the chart:

As you can see, there was a nice long entry near 10 am EST on 7/26 that would have given you a nice run up the hod at the close. Today it dipped right out of the gate and also hit 20 on the RSI where it then bounced. Price is now hanging out near the 26 level.

The Higher Lows again today look bullish intraday.

 

The Black candle

I have been working through my normal prep routine this Sunday and came across the chart for PBR (Petroleo Brasileiro), known as Petrobras, and noticed a fair number of Black candles in the chart above.

I have circled several of them for you. I notice several things here:

1) If you buy the black candle and sell on the next black candle, that trade is a loser.

2) If you buy the black candle on sell on the next red candle, the trade has 1 winner this year (April).

3) Will the pattern repeat or will this current black candle be a buy? Can it hold over that 50 day moving average (in blue)?

 

 

 

Overwhelmed

If he is re-elected in 2012, the US is finished. The following is in simple language that
everyone can understand. Not the gibberish that our government keeps telling people. Please read this carefully and make sure you keep this message going.
OBAMA’S COLLEGE CLASSMATE SPEAKS OUT
By Wayne Allyn Root , June 6th, 2010
Barack Hussien Obama is no fool. He is not incompetent.
To the contrary, he is brilliant. He knows exactly what he’s doing.
He is purposely overwhelming the U.S. economy to create systemic failure,
economic crisis and social chaos — thereby destroying capitalism and
our country from within..
Barack Hussien Obama was my college classmate
( Columbia University , class of ’83).
He is a devout Muslim do not be fooled.
Look at his Czars…anti-business..anti- american.
As Glenn Beck correctly predicted from day one, Barack Hussien Obama is
following the plan of Cloward & Piven, two professors at Columbia University ..
They outlined a plan to socialize America by overwhelming the system
with government spending and entitlement demands.
Add up the clues below. Taken individually they’re alarming.
Taken as a whole, it is a brilliant, Machiavellian game plan to turn the United States into a socialist/Marxist state with a permanent majority that desperately needs government for survival … and can be counted on to always vote for bigger government.
Why not? They have no responsibility to pay for it.
Universal health care . The health care bill had very little to do with health care. It had everything to do with unionizing millions of hospital and health care workers, as well as adding 15,000 to 20,000 new IRS agents (who will join government employee unions).
Obama doesn’t care that giving free health care to 30 million Americans will add trillions to the national debt.
What he does care about is that it cements the dependence of those 30 million voters to Democrats and big government.  Who but a socialist revolutionary would pass this reckless spending bill in the middle of a depression?
Cap and trade. Like health care legislation having nothing to do with
health care, cap and trade has nothing to do with global warming.
It has everything to do with redistribution of income, government control
of the economy and a criminal payoff to Obama’s biggest contributors.
Those powerful and wealthy unions and contributors (like GE, which owns
NBC, MSNBC and CNBC) can then be counted on to support everything Obama wants.
They will kick-back hundreds of millions of dollars in contributions to
Obama and the Democratic Party to keep them in power.
The bonus is that all the new taxes on Americans with bigger cars,
bigger homes and businesses helps Obama “spread the wealth around.”
Make Puerto Rico a state. Why? Who’s asking for a 51st state?
Who’s asking for millions of new welfare recipients and government
entitlement addicts in the middle of a depression? Certainly not American taxpayers. But this has been Barack Hussien Obama’s plan all along.
His goal is to add two new Democrat senators, five Democrat congressman and a million loyal Democratic voters who are dependent on big government.
Legalize 12 million illegal Mexican immigrants.
Just giving these 12 million potential new citizens free health care alone could overwhelm the system and bankrupt America.  But it adds 12 million reliable new Democrat voters who can be counted on to support big government.
Add another few trillion dollars in welfare, aid to dependent children,
food stamps, free medical, education, tax credits for the poor, and
eventually Social Security.
Stimulus and bailouts. Where did all that money go?
It went to Democrat contributors, organizations (ACORN), and unions — including billions of dollars to save or create jobs of government employees across the country.
It went to save GM and Chrysler so that their employees could
keep paying union dues.
It went to AIG so that Goldman Sachs could be bailed out (after giving Obama almost $1 million in contributions).
A staggering $125 billion went to teachers (thereby protecting their union dues).
All those public employees will vote loyally Democrat to protect their
bloated salaries and pensions that are bankrupting America.
The country goes broke, future generations face a bleak future, but Obama, the Democrat Party, government, and the unions grow more powerful.
The ends justify the means.
Raise taxes on small business owners, high-income earners, and job
creators. Put the entire burden on only the top 20 percent of taxpayers, redistribute the income, punish success, and reward those who did nothing to deserve it (except vote for Obama).
Reagan wanted to dramatically cut taxes in order to starve the government. Barack Obama wants to dramatically raise taxes to starve his political opposition. With the acts outlined above, Barack Hussien Obama and his regime have created a vast and rapidly expanding constituency of voters dependent on big government; a vast privileged class of public employees who work for big government; and a government dedicated to destroying capitalism and installing themselves as socialist rulers by overwhelming the system.
Add it up and you’ve got the perfect Marxist scheme — all devised by
my Columbia University college classmate Barack Hussien Obama using the Cloward and Piven Plan ….
“Correctly attributed” says snopes!
http://www.snopes.com/politics/soapbox/overwhelm.asp

The RSI Buy – the series

One of the stocks I’ve been trading today is SHOO (Steve Madden Ltd). It had a nice bounce off of 40 out of the gate and made it up through the 41 level before hitting the RSI ceiling. After a nice pullback to the 40.35 level the RSI hit the 30 line & buyers came in.

It has had a nice secondary bounce today and is hovering at the 40.70 level at the moment. This is the 5m chart that I was watching today:

When it all adds up

The importance of maintaining a Stalk list becomes even more crucial when the market finds itself in a range. One does not have to have a directional bias, but it is so important to trim down your list to just the absolute best setups.

Today I had a very short list of newly added names from work I did Wednesday evening including CE (Celanese). The chart that I posted this morning:

When I reviewed the chart, I noted the action in the Stochastics. It appeared to me a Stochastics cross up move was a potential – a setup that I play a great deal. So there is 1 mark for the setup. Next I note the rising volume this week, yep, another mark for the setup. I also note that price is above all the Moving Averages as it bases “in the box”.

So when you have a lot of positive things “add up” in a setup, it deems it worthy of being high up on your Stalk list.

Trade ‘em well.

 

 

The RSI buy

Many of you have asked for more frequent examples so I will try to do this more than once per week. Today’s example comes from SQNS (Sequans Comm S A) where the RSI hits 20 & bounces:

The downward pressure brought the RSI all the way down through the normal ranges after being elevated in the Pre-Market action. Once through 30, the stock is put on my stalk list and I began to prepare for an entry. Currently long at 14.15

Anatomy of a Chart

http://wiki.answers.com/Q/What_the_heck_does_heck_mean

I often get questions on what the heck I mean by some of the things that I note in my chart. No worries as I am going to run through a recent one that I posted today. Below is a chart for HLX (Helix Energy Solutions Group):

Here is what I see in the chart:

1) Price is drifting up to test Resistance at 17.62 level ; I will note “R” as Resistance. This is in a Break Out pattern which I will note as a “B/O” watch over a certain level.

2) The Stochastics are in the process of crossing up through ; I will note this as a “STO x^” potential or that it is imminent or in progress.

3) The Rate of Change on Volume is shooting up ; I will note this as a “Ski Jump” or “Rocket Ship” move.

4) It is near the upper Bollinger Band ; I will note this as “BB”.

5) This pattern is a Cup & Handle pattern ; I will note as a “CnH” pattern.

6) At times I note the Volume at Price bar when it seems relevant ; I will note this as “VaP” bar

And that concludes Anatomy 101 class for today. Enjoy your Sunday.