Weekend Report- Consolidations Are Annoying Eh?

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Sometimes those consolidations in a growth stock can drive an investor nuts.  It can be frustrating when the constant woodpecker like stream of ticker symbols on CNBC look better than your sideways stock. The Stocktwits traders seemingly busy banking gains on their hot stock of the day or week while your  fundamentally strong company sits there ad nauseum.  The tendency is to bail out on your well researched and fundamentally strong company and chase the hot girl up the street.   Surely your money will grow faster if you can just hitch your wagon to the hip water cooler talk special stock of the day or week right?

Sometimes at the SRP service we are sitting on several stocks that are trailing the market averages while they consolidate, or perhaps even correcting. Not only that, often the fundamentals are seemingly solidly in place yet the market doesn’t seem to care. Welcome to the public stock markets where people chase the latest hot IPO, such as this weeks  EYES which has a 900 million market cap and 2 million of annual sales. A company that has been around for 16 years and never made a dime of profit and has 117 million of accumulated losses. A company who had convertible bond debtholders they needed to pay off. Best way to do that is sell a sexy story and hire a sub-par underwriter at a low commission rate to sell your IPO to retail investors. Hey, it worked so we are not knocking them but we also wouldnt call this a fundamentally strong story either. That said, fundamentals don’t matter though when there is a classic Wall Street thin float IPO with a sexy story… no profits, but the story is water cooleresque man!  It’s all fun and games until the next quarterly report comes out and that formerly hot trading stock shows its true colors with actual numbers that may be a bit sobering and not so sexy no? With that said, we understand those day trader plays look tempting and often you can make a few bucks on them if you are quick, but you can also lose 15-20% of your trading dollars in 1-2 days when the sexy story wears thin.

What to do?  Avoid the temptation to jump off the wagon of your strong company just prior to that upside breakout, which you know is what will happen as soon as you sell right? A lot of the trading on a day-to-day and week to week basis on Wall Street is purely random in nature, and also 80% controlled by computer bots and pre-programmed trading movements.  One day your stock is sitting at $13.25 per share and the next morning its opening at $12.30 and there is no news and no explanation.  3 days later its back to $13.50 and you just sold out and lost money… sound familiar? A lot of that is programmed bots ripping retail shareholders off by tripping stop losses and snagging shares before the reversal.  That’s why charts by themselves never get it done, they are a tool in the box but at the end of the day the fundamentals will win out.  This is why as much as it may be water cooler talk “Cool” to buy that EYES sexy IPO and chase the gains, in the long run that type of hot stock chasing will lose money.

With many quality names going sideways while the SP 500 index and NASDAQ index climb higher, it can be frustrating…

To wit, if we can quote Investors Business Daily from their Saturday paper here is what they said:

“For three weeks, the IBD 50 has been flat even as the major indexes have made new highs…Many have stalled, hanging by a thread to their latest buy points. With the market rising, these leaders should be making progress… Instead, there are just a handful of leaders making sizable gains… While crawl is frustrating investors, the indexes edging higher with little distribution means that market risk remains acceptable”

So if you are feeling like you are missing some of those bullet trains whizzing by on the CNBC and StockTwits trending ticker lists, resist the temptation to alter your game winning longer term trading plans and know that stocks make their biggest percentile moves in very short time frames, and usually right after you give up and sell.

Over at our Premium Service, here is a list of 11 stocks from which we are likely going to drill down and grab 3-4 for Intermediate Swing plays:

EA; FIVE; BIDU; FLT; CDW; LQ; HOLI; NEWM; JAZZ; ZAYO; CTLT

Come try us out.  $649 for 12 months of service includes pre-market updates daily, market forecast updates daily, 3-6 Short to Intermediate term (days to 4 weeks) swing trades every week, Intermediate to Long Term hold positions active portfolio.  Weekend reports, Real Time Text and Email alerts, Entry and exit points and more!  We also offer $99 a month, and $249 per quarter options to sign up.  One trade can pay for a few years!

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WE HIT “KING” (KING)  THIS PAST WEEK FOR 13-14% GAINS INSIDE OF A 6 DAY HOLDING PERIOD.  $10,000 WOULD HAVE YIELDED ENOUGH PROFIT TO PAY FOR 2 YEARS OF SRP SUBSCRIPTION ALONE!  EVERY WEEK WE HAVE 3-4 NEW SWING TRADES AND MORE!

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Oh Ye of Little Faith-Weekend Report Nov 15th

This weekend we look back on our comments about Twitter and Ubiquity and look ahead to other opportunities and thoughts on the markets as well including Biotechs, Gold, and other areas of interest:

In the interim, make sure to sign up for our Free E-mail report list. We send out occasional stock ideas, quick write-ups, Business Disruptor research reports, and weekend editions via the opt in list.

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Last weekend we espoused on the short term 90 day nature (Train Wreck) of Wall Street.  Two of the samples we discussed were Twitter (TWTR) and Ubiquiti Networks (UBNT). twtrWe figured that eventually Twitter will figure out how to monetize 500 million users and that Ubiquiti is still going to triple revenues in the next three years in the wireless networking space.  So if we take a 2nd look now a week later at the charts, we see some interesting “bases” forming that look ready to turn back to the upside.  90 day memories are short it looks like, Wall Street eventually “looks ahead”.

Twitter popped up from $39 to $44 in just over 24 hours of trading this past week, and we are long at SRP. We added below $39 in fact. UBNT some of our members are still long with a stop at $27.50 looking for a rebound. A stock buyback announcement may come as well, which would likely spurt the shares back to $32-$33 in our opinion.

Some Base charts below tell the tale of the tape (Click to Enlarge)

twitter base

ubnt base

The Biotech Sector finally took a breather late in the trading week, we expect that was overdue.  Sentiment obviously varies from the pessimistic to optimistic extremes and is part of what we specialize in at StockReversals.com and StockReversalspremium.com for sure.

There are a few that we like, though we give a little pause because my sister E-mailed me on Friday about a Biotech that just went public late in the week that she bought some shares in. My sister hasn’t e-mailed me about stocks in years, and there alone is the Taxi Cab Driver top signal perhaps?  Either way, some pullbacks in quality 2014 IPO names like Concert Pharmaceuticals (CNCE) and recent IPO Coherus Bioscience (CHRS) have us interested in accumulating.

Coherus (CHRS) chrsis interesting in that it was formed in 2010 and quickly has gone from a start up to having as many as 3 Phase 3 trials underway by the 1st quarter of 2015. They went public quietly about 10 days ago at $13.50 and as much as 40% of the 6.3 million share offering was taken up (bought) by existing shareholders and insiders. The most notable being one James Healy, M.D.  We like to do our research and look for clues you know.

Under the rug we discovered that Dr. Healy, of Soffinnova Ventures,  in 2011 Jim won the IBF Risk Master Innovator Award and was named as one of the industry’s top life science investors in 2013 by Forbes Magazine. Jim is a Director on the Board of the National Venture Capital Association (NVCA).  The vast majority of his prior investments in Medical companies have been acquired including  Cellective (acquired by AstraZeneca), CoTherix (CTRX, acquired by Actelion), Durata (DRTX), Kalobios (KBIO), Movetis (MOVE, acquired by Shire), NextWave (acquired by Pfizer), Novacea (NOVC, merged with Transcept), Preglem (acquired by Gideon Richter) and Prestwick (acquired by Biovail).

So we like to follow the smart money and Dr. Healy picked up 5.75 Million worth of the IPO at $13.50, and now controls 8% of the shares in the company (32 million outstanding).  Also invested are Eli Lilly Ventures with a 10% stake and Japanese powerhouse Sankyo who are partnered with Coherus in Asia.    Coherus is formulating “Biosimilar” drugs that function much like powerhouse drugs from Amgen and Abbvie, also known as Enbrel, Humira, and Neulasta. Last year those 3 drugs combined for 14 Billion in sales in the US alone.  CHRS is planning to emulate the formulations and market them overseas at much reduced prices, somewhat like a generic version but more involved and too deep to go into discussion on here.  They have a partnership with Baxter for Europe which provides milestone payments and royalties going forward, same with Sankyo in Japan and Asia.  They retain 100% us rights to all 3 currently.  We like this one to shoot forward in the 1st part of 2015 after a POST IPO base period. We are buyers, and as of the Friday close you can buy this near the IPO price, so we are and will keep adding. The near term catalysts being the end of the post IPO quiet period and likely FDA nod for a move into Phase 3 for their version of Humira this month.

King  Digital Entertainment (KING)king killed it this week going from 13.70 to 16.07 for a sweet 17% rally for SRP members. We were buying this stock over a week ago under 13.80 after earnings because the value was just too good to ignore. The company has diversifed outside of Candy Crush Saga, they add one new game every 90 days, they do amazing consumer gaming research before further developing games.  They send money back to shareholders via huge dividend payments and or buybacks, and are gushing cash and cash flow. PE ratio was 6 when we got long. I mean this is why we are in the market, looking to exploit opportunities right?

Gold is trying to form a completed primary wave 5 bottom from the 2011 highs of $1923 per ounce.  A 50% retracement of the entire bull cycle comes in around $1120-$1130.  We hit the $1130 area and have bounced off. There is strong resistance around $1190 per ounce.  So key support is 1130 and resistance at 1190 for Gold right now.

Some stocks that have our interest and a few of which likely hit the SRP swing trade positions early in the week:

NXP; VRX;  BITA;  ATHM; JAZZ; EA; AKAM ; ATHM; NXP; BYI; CRTO; NTES; KFRC

There are 13 symbols for you that are meeting criteria we look at for opportunities to get long.  We cull them down to 3-6 usually and then alert 3-4 of them early in the week at the SRP service.  Consider joining us if you are not already a member.  A nice 16% pop in KING this past week was a highlight for SRP members.

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Short Term Wall Street Insanity

Wall Streets obsession with 90 day results often leaves bitter tears for us traders and investors. The constant SEC induced quarterly updates with the requisite conference calls and transcripts beat a 90 day drum of fear and hope in investors. “We beat the estimates, we missed the estimates, we are raising them, we are spending more money this quarter, emerging markets are weak, a big customer delayed an order, my dog ate my homework”… and so forth. The last time we checked, real businesses are not obsessed with 90 day results or 90 day planning but Wall street is. This creates chaos for investors as we all know, but lots of commissions for Wall Street. In an interesting outtake from the UBNT conference call this past week, when they “missed estimates”, the CEO Robert Pera was asked about a stock buyback. His response, “I didn’t even check the stock price, I’m in this for the long haul but yeah I guess we will have to take a look at it”. Analysts have to make their money and must give constant updated reports on the buy side and sell side. A true CEO isn’t worried about 90 days, he is worried about 3-5 years ahead.

Current examples are Twitter and Facebook, both stocks hammered after seemingly good 90 day results. All Twitter did was improve revenues 115% over the prior years quarter. As it stands, Twitter is still trying to figure out their 1 year plan let alone the 5 year plan, but one thing will hold true, the growing power of dissemination of real-time information to which they have a grip on. Whether they figure out how to best monetize that in 90 days or 2 years I don’t really care or know, I just want the right management team in there to figure it out… which I suspect they will.

Facebook is only growing at like 75% or so with 1.3 billion users and growing. They said they need to spend some more money and the stock tanked from $81 to $74 almost overnight. Yeah, let’s not spend any money and just sit back and see how things go… or wait, maybe Facebook should invest and spend money to grow longer term right? Nah, we are worried about the next 90 days here on Wall Street, we don’t have time for this business planning nonsense, down she must go!

Many stocks formerly in the Investors Business Daily vaunted IBD50 got shellacked this week themselves on their 90 day focus. Among them SLXP which tanked 34%. TMH which dropped 13%. AKORN 14%, Autohome 17% and the list goes on. The IBD50 is all about “what have you done for me lately” mentality. It’s the NFL version of “power rankings” which are totally meaningless. For any of you NFL fans out there I have watched the #1 NFL power ranked team change almost weekly since start of season as follows. Seattle.. “this team is possibly unbeatable”, that comment followed their week 1 victory over Denver..since then 4-3 record. Carolina…”off to a fast start, they are playing much better than anyone thought ” (Have gone 0-3 since then). Wow, the Patriots are looking like their Dynasty is over… since that loss to Kansas City on National T.V, they have won 5 straight and are now #1 power rank. Dallas Cowboys starting 6-1 “looks like the best team in the NFL right now”… really? They have lost 2 in a row since they were being called the best team. Even the NFL is subject to the swinging opinions of the talking heads, and at the end of the season all that will matter is which team is still executing the best of all of them right? Same goes with the long term planning at most companies…

So as investors sometimes we are going to get caught up in this 90 day short-term sighted train wreck they call Wall Street. Volatility comes with the territory and can render short-term investing movements as rudderless and frustrating. At the end of the day, what will matter is the management team, the balance sheet, the growth prospects, execution of a well thought out long-term game plan, and the ability to adjust to changing environments. In the short-term 30-90 days anything can happen with your stocks because you are dealing with short-term emotions from investors and traders and therefore extreme volatility.

A few examples from our Business Disruptor companies certainly come to mind. ZLTQ is one we profiled late in 2013, a company that helps literally melt fat away with a cooling technique. The company is now a darling of investors, but over the past 11 months the stock went from 15 to 24 to 17 to 27. We wrote it up around 18, and if you held for 11 months and went on a few Disney trips and didn’t look at the stock you would be up 50% right now. Another good example is Tableau Software (DATA) which we mentioned again recently in a weekend update. We called them boldly “The next Microsoft” in our 2013 write-up. The stock went from $58 to $52 to $104 to $55 and now $87. Everyone lately seems to be talking up the company, and over the 12 months since we wrote it up the stock has returned about 58%. Why all the ups and downs? Wall Street 90 day concerns, commission driven volatile trading environments and analysts who change their minds more than their underwear based on short-term “concerns”.

Another good example is is UBNT which we just saw clipped for a 15% drop from our entry points this past week based on 90 day results. All they did was earn 48 cents a share in profit with a run rate of $2.00 in earnings or a 15x earnings PE ratio. Because the 48 cents was 4 cents less than the 90 day expectation, the company got clipped for a 17% drop on Friday. What short-term investors forget is they are planning to triple their business over the next 3 years just as they did the last 3 years and disrupt wireless networking all over the world like nobody has ever seen. However, for us short-term focused traders it’s a total debacle of a swing move to the downside. To the management team and long-term shareholders at UBNT, they probably didn’t lose much sleep this weekend.

At SRP we have to therefore contend with this short-term focus on Wall Street and short-term trading mentality as we try to comb through options and opportunities to invest and trade. This can be difficult at times and richly rewarding at other times. It can be sometimes seemingly trivial and volatile in terms of short-term results. It can be exasperating and frustrating, but in the end fundamentals, balance sheets, and long-term planning do matter. The short-term is really all about your risk tolerance, your position sizing, and your time frame with your positions. The long-term is about being patient and focusing on execution, management, growth opportunities, and catalysts as well… which is what we will continue to do.

Now if we look at our October 18th weekend edition, recall that everyone was very worried that weekend about the stock market. Our opinion was it was a typical Fall swoon and would soon see an uptrend as everyone was sold out. We gave out a list of 7 stocks that weekend which are still sitting on the website in plain view. Here are the results in the “short-term” since that Oct 18th list was put out:

SWKS- $51.06– $59.85, for a 17% gain

MANH- $33.45- $40.18 for a 20% gain

BABA- $87.91- $114.50 for a 29% gain

CUDA- $29.29- $32 for a 10% gain

BABY $30.94- $33.89 for a 10% gain

EXAS- $23.77- $23.34 for 1% loss

GILD $100.75- $106 for 6% gain

So in the short-term 3 weeks we can see great swing gains on all those weekend ideas we put out, but the longer term results we can’t know right now. All of those companies listed above have strong management, good balance sheets, good execution, and a good game plan… good chance the long-term will turn out fine for most of them. However, every 90 days they will have to put out their quarterly results and will be subject to wild swings.

We are going to implement some slight changes to how and what we deliver for swing trades and intermediate to long term trades at SRP starting this coming week. Please review the Email sent out this weekend for those changes.

Weekend Stock Ideas Edition Nov 1st

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So the week ends with a bang and the market resumes the Bull cycle uptrend.  We have 7 fresh ideas this weekend for your along with brief commentary on the markets and precious metals.

Briefly as well, we would love for you to join our Premium service. Real time text and email alerts on swing trade and longer term growth stocks. Morning updates daily on all positions and the markets. 24/7 Email access to us directly at anytime. A track record of smashing the SP 500 over 13 months by over 4 to 1, check it out at www.stockreversalspremium.com

 

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We last had a Weekend Edition two weekends ago when the market was in the process of putting in a typical October bottom we thought. A classic ABC correction pattern in the small cap index we highlighted and it played out nicely. The small caps have rallied some 13% off the lows leading the markets higher.

Although we have had a V shaped bottom in the markets, a lot of the drop off in early October was exacerbated by fears over Ebola, a slowdown in China (Which we refuted), and your typical October swoon which we wrote about to our premium subscribers not to panic.  We were looking for an ABC bottom in the markets and our metrics were showing some of the most extreme Put to Call ratios in years, the % of Bullish advisors dropping to 37% from 58% in the summer, New lows vs new highs at worst levels since 2012 lows and more.  It was obvious to us the market was bottoming out as sellers were liquidated, leaving only buyers… and short covering in its wake.

Gold and Silver are completing the final 5th wave stage drop in their ongoing bear cycle from their 2011 highs. These metals should bottom in the spring of 2015 as the stock market possibly puts in a 6 year high according to our work.  We may see Gold as low as $920 per ounce with the first pivot of support at $1080. Some epic buying opportunities for patient investors are already emerging as we type in selected Gold and Silver stocks.

Recently our two weekends ago report also gave out several names in the midst of selling panic that have worked out.  Among them are GILD, CUDA, BABA, MANH just to mention a few.

With that said, we are simply going to point out 7 opportunities on individual names this weekend, which is only  a handful of them that we like.  We have already discussed that Biotech stocks are market agnostic and we always have a handful of those on our list like ISIS and BLUE which we were bullish on back in the spring on both (Huge gains since).  We mention here also DATA, one of our Business Disruptor stocks that is the next Microsoft, or so we said last year at $58 (now $82).

Premium members were also urged to add to a commodity stock position late in the week as it dipped towards $10 per share, 24 hours later it hit $11.50 on positive news for a 15% reversal swing (CLF). We have several open positions now that look poised for nice upside moves near term as well, with more in the cue.

This weekends list we have 7 ideas for you as follows:

DSKY TSRA TMH ULTA HLX VDSI SCOR

Each chart has brief notes on each stock.  We hope it provides some possible value.

111 DSKY111 TSRA111 tmh111 ulta111 HLX111 vdsi111 scor

Updates and New Ideas

SR- Updates and Stock Ideas for Monday 10/27/14

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PRIOR STOCK UPDATES AND A FEW NEW IDEAS FOR THIS WEEK AND ONWARD!

As we laid out for you a few times in the last few weeks, the market was setting up for a classic October bottom washout.  The small caps peaked in July and created a normal A B C Correction pattern into October lows, about a 14% decline.  The Large caps played catch up at the end with  9% decline from 2019 to 1821 lows.

So now is a good time to be reviewing new market leaders and areas of strength.  First we will update a few of our recent or past Business Disruptor picks:

SPCB-  up over 100% now at just over $12 from our May report.  This security company continues to build contracts and earnings growth long term.  When we wrote it up at $6.10 it was dirt cheap, now its just cheap still…

MOBI-  They have completed 40 million stock buybacks since our May write up at $6.50 on Seeking Alpha. The stock rallied 66% at one point from that update, but has pulled back.  Its a head scratcher, but believe it to be undervalued here in the mid to low 7′s.  

CNAT-  Finally some movement, but we await Phase 2 top line data on 3 different trials/indications using their liver Emericasan platform.  The stock at 7.50 now after hitting low of 6 where we added at SRP service on that gap fill at 6.05.  We continue to look for $12-$19 per share targets.  4 analysts have buy ratings with $14 on the low end and $19 on the high end for targets ahead of data.

XNET-  Down at 9.77 per share with $7.25 per share in cash.  Some chinese stocks have been hit as China has ramped up some of their web based restrictions. We think XNET has come down in sympathy but we continue to expect big upside as Lei Jun puts the puzzle pieces together.

NEW IDEAS:

Biotech is somewhat market agnostic. Some of our favorite plays we discussed here and on stocktwits this late spring included ISIS and BLUE.  Both of those are breaking out with BLUE up 87% from our $23 bullish commentary on Stocktwits in May. 

So in terms of what we like right now?

GILD- $111  Gilead Sciences reports earnings tomorrow.  Stock at $111 per share and we expect a blowout for the quarter of $1.85 per share plus, and the stock to trade up to $125 if we are right.  A leader in Hepatitis-C Drug sales, not to mention HIV related drugs.  Company has been growing a triple digit rates last few quarters, 12x 2015 earnings estimates.  

CNCE-  $13.86   One of our favorite biotech plays.  Its $13.80 per share, below the February 2014 IPO price. Insiders all bought into the IPO at $14 and they are working with Jazz Pharma, Celgene, and Avanir in 3 different indications, plus their own indications in Kidney, Spinal cord and more. They license their compounds out to be used with existing drugs already on the market. They make the half life much longer, lower dosages needed, better efficacy, less risk.  They get royalties and ongoing milestone payments.  Its a new Deuterium based chemistry that makes the drugs work better by metabolizing in the body.  The founders all were responsible for 12 FDA approved drugs PRIOR to forming CNCE in 2007.  Our 12-18 month target is $54

BABA-  $94.50  We liked it two weekends ago in the weekend report as one of our 8 stocks to consider. All 8 of them have rallied up nicely last week.  BABA looks set to run over $100… one of those buy and hold stocks for sure.  Chinese online growth will continue for a long time and BABA will continue to soak up the dollars of profits year after year…

Plenty of others, but for now we mention the 3 above as NEAR term actionable.

Consider joining our Premium Service today, trouncing the SP 500 over 4 to 1 since 9/1/13 Inception.  Try the Annual subscription option and save 46% vs the Monthly option.

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Oct 18th Weekend Edition and Forecast Update

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Its been a typical September-October swoon in our opinion, a common period of time in the markets when corrections occur and also bottom out.  The markets historically have put major pivot bottoms in during the fall mostly due to seasonal factors.  There is a whole rush of traders that come back in September from August vacations.  Portfolios get rapidly adjusted, turnover picks up along with volume of trading.  Then you have the end of 3rd quarter “window dressing” period when managers sell the losers from the quarter and add the winners.  This is often followed by a downslide in October as portfolios are once again adjusted.

We have seen a classic ABC correction pattern in the Russell 2000 small cap index from the June/July highs to this weeks lows.  The IWM ETF fell from 120 to 103, about a 14% correction.  In the same period of time, the SP 500 fell about 9% but not really until the last 3 weeks or so did the large cap stocks catch up with the small stocks.

A move over 110 on a closing basis for the IWM ETF would likely confirm a bottom in the small caps

1018 iwm srp

This week we pointed out a bullish divergence building mid-week when the Small Cap index stopped declining while the large caps were underperforming on the downside. Later in the week the small caps rallied hard off their lows as much as 5% plus while the large caps lagged.

It would appear most of the damage has been done and the market had a much needed washout.  We have a few metrics to look at right now that are of interest.  The NYSE short interest has been declining at a rapid pace while the market has dropped, this indicates shorts are starting to cover their bearish bets.  Also, in the most recent survey of money managers the percentage of bulls has declined to 37.8% from a high near 56% late in the summer.

In addition, the pure technical pattern shows a possible “Bullish Reverse Head and Shoulders” pattern on all the indices.

1018 spx srp

 

We would not be surprised though to see a pullback and gap fill re-test of the Thursday closing prices early next week, and resistance at 1910 on the SP 500.  Also, an eventual re-test of the 1820′s lows in the SP 500 can’t be ruled out either.  We had a nice Gap fill from the April 2014 lows on the SP 500 early in the week with one more at 1770 area from February still sitting out there, worth us watching.  A great real  bottom would come in at 1775-1795 which we pointed out early in the week, but we will have to monitor and advise our subscribers on near term patterns. Also, the SP 500 and Dow have not appeared to complete a more traditional ABC pattern, so the current rally may be nothing more than a B wave run up, followed by another leg down…

Resistance for the SP 500 comes in at 1927 and 1944

We are concerned the Ebola outbreak could freak traders and investors out if it is not contained soon…

Early in the week at the SRP service we  got stopped out of a few good growth stocks that then declined quite a bit further after we sold, many of them recovering late in the week.  We did manage to sneak in a 24 hour 17-20% swing trade gain on FNMA though, which was nice.

For the first time in several weeks we are spotting a few stocks that are looking more attractive in terms of valuation and entry points than we have seen in awhile. With that also said, the chart patterns on many are not out of the woods even with the late week rebound.

A few that we will keep a close eye on for possible pullbacks before entering or breakouts include the following:

SWKS- Skyworks Solutions- Raising guidance for 4th quarter

MANH- Manhattan Associates- Supply Chain Software provider, leader in group

GILD- Gilead Sciences if it can close over $103, PE ratio at 12x 2015 estimatesw with strong growth

CUDA- Barracuda Networks looks very strong now

BABY- Natus Medical also looking good as it hits 52 week highs Friday in an uptrend

EXAS- Exact Sciences- $23 a share range. We first wrote about them at $16.75. They got approval for reimbursement rates of $502 per test for their DNA based colon cancer test, a nice platform from which to grow (Alternative to traditional Colonoscopy Screening)

BABA- Alibaba looks like it bottomed at $82 this past week, probable test of $100 coming soon market willing

Several Biotechnology names we like, one of which has been reserved for our Premium members only in a full report sent out a few weeks ago we think can quadruple in12-18 months, but there are quite a few of interest and are often market agnostic.

Best of luck with your trading this coming week and ahead

The Stock Reversals Team

www.stockreversalspremium.com (Premium service with active short term, intermediate, and long term positions)

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MBLY 12%

FNMA 17-20% Week of Oct 13-17th

 

 

 

 

Oct 1st- Classic October Bottom Forming

The typical September-October swoon is probably coming to an end this week if we are right. Seasonality plays a big role as money managers get back to work in September and begin to adjust their portfolios. Then at the end of the quarter window dressing also takes hold, adding to the volatility of stocks.

Right now we are seeing the same oversold bottoming indicators we pointed out to our subscribers in May and early August this year, especially in the small cap indexes.

A few components we look at include the Volatility Indexes, Sentiment Surveys of Advisors, NYSE Short interest ratios, Put to Call levels, as well as correction patterns and human behavior.

We show you a few below that look like they are re-testing summer lows and setting up for a big market rally in the 4th quarter, it’s time to buy!NASI Summation Index is nearing the May and August oversold lows:

 NASI Summation Index nearing May and August indicator lows

101 nasi

Volatility Indexes also trading near August lows for our indicator

101 vxo

The Percentage of NASDAQ stocks trading above 50 day MA line has plunged

101 nasdr

New Highs vs. New Lows indicator at lowest levels all year, lower than May 2014

101 new highs

Classic Human Behavioral Pattern- The ABC Correction in Small Caps

IWM ABC

Now is the time to accumulate your favorite oversold and undervalued technology names, biotech names and more.  Focus on the valuations, share structures, insider ownership, and pretend you were considering buying shares in a private company… what would you pay? Now is the time to be aggressive.

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