` Gary Investing Blog: October 2012

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Friday, October 26, 2012

Oct 26, IDCC, RIMM. AFCE, PCAR, SSYS


InterDigit, Inc (NASDAQ: IDCC) finally make some move. I know I told you I sold my shares on twitter. But I might have mislooked the mid-term uptrend. With today's run, seems the uptrend is still intact. Personally, I might not buy until I see more moves. I don't want to get too emotional on this stock.


Research in Motion Ltd (NASDAQ: RIMM) For those who are still holding their shares. Mind for 50day moving average cross over. The picture here ain't looking good at all, especially the A/D line.

AFC Enterprise, Inc. (NASDAQ: AFCE) holds a commonly known franchise, Popeye's. After today drop by 4% the stock is closing around 50 day moving average. In light of the action on IDCC today. I think AFCE might be a candidate to have a similar move (a run off after a huge drop)


PACCAR, Inc (NASDAQ: PCAR) had a positive move today and yesterday with huge volume. A/D, MACD< CMF are all ticking up. MACD just crossed over. Today's high ($43.5) is also higher than last high ($43.38). Watch out for more action.


Stratasys, Inc (NASDAQ: SSYS) crossed back to a level above 50 day moving average. Decent volume with A/D ticking up significantly, showing a bullish divergence. SSYS is also one the companies manufacturing 3D-printers and related technology like DDD.

J. P. Morgan Chase & Co. (NYSE: JPM) has shown red 4 out of 5 trading days this week. A/D does not should much move. So, might be a negative divergence there. JPM is now trading close to 50day moving average ($40.00) which happens to be an exact number. I look forward to seeing some strong support of $40.00 level and a move higher. Since the stock has been making HH HLs.

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Thursday, October 25, 2012

Oct 25: AAPL, CLWR, DDD, ED, SIRI, PG


Apple, Inc (NASDAQ: AAPL) missed estimate after hours. Watch for tomorrow action. The stock has recently been sold massively. I am looking forward to 200 day moving average giving some support to the stock. PE ratio P/Book ratio is lower than SP500. It could be a value when market sentiment is over-reacting and over-selling this stock.


Clearwire Corp. (NASDAQ: CLWR) has retraced most of the run early this month. Now closing right above major moving averages (20, 50, 200 days) Golden cross days ago. but MACD turning negative. Watch for major action.


3D System Corp. (NYSE: DDD) For those what have been following me since this summer should DDD was my favorite stock by then. Today it made a 13.72% jump closing at $40.75 after earning reports, touching upper bband and confirming the short term price channel. CMF turning positive. MACD +ve. RSI making higher lows. I initiated a long position in this stock today. Looking forward to see some more price action for the coming weeks.

Consolidated Edison, Inc (NYSE: ED) RSI has been making higher lows. CMF crossed to +ve level. MACD +ve. This stock has been trading in a tight range of $59-$61, making a bullish divergence with RSI, MACD, and CMF indicators. Earning report is on Nov. 2nd.


Sirius XM Radio Inc (NASDAQ: SIRI) I have sold my positions in SIRI last week as I mentioned I am expecting a little correction after the stock hitting $3.00. I was analyzing based on slow STO and RSI. Now the RSI is back to OKAY level. However, when I pull up Accumulation/Distribution indicator. The story is different. A/D line is keep making new high, sending us a bullish divergence on SIRI. According to Bband, prices should find some support around 20day moving average, and it is trading right above it today. Should it make a new run soon, its your call. But I am bullish on this stock on the long run.

Procter & Gamble Co. (NYSE: PG) made a new high today, closing at $70.07. Yield 3.21% on dividends with Beta 0.44. Quite a stock for safety. I might initiate a long position tomorrow on this amid mixed earning report season.

Notable earnings before Friday’s open: ACI, AON, ARLP, AXL, B, CMCSA, CVH, DAN, DLR, EGO, ERIC, GT, HMSY, IMGN, IPG, KKR, LM, LYB, MCO, MRK, OHI, OSK, QSII, TASR, TCB, VTR, WY

Wednesday, October 24, 2012

Oct 24: GRPN, ONVO, APP, FB, YELP, ASPS

  • American Apparel Inc. (AMEX: APP) have definitely have found some support from $1.10 level. $1.10 has been resistance two times in the past. Now turning to a support is a bullish sign for APP. 
  • RSI might be turning around.
  • Giving the $1.10 strong support, any appreciation could be meaningful to this stock. However, for safer play, you can entry at $1.25. which is above 50 day moving average.


  • Atisource Portfolio Solution S.A. (NASDAQ: ASPS) broke out from the rectangle pattern with heavy volume, closing at $124.33
  • Today's high just about touched upper Bband (Bullish signal)
  • MACD turning positive
  • Slow STO and RSI at high level, signaling this stock might undergo some consolidation (horizontal move) or correction. 


  • Facebook, Inc (NASDAQ: FB) Needless to tell you about its earning and active users growth. One beating report does not mean its business model is sustainable. But it could be a start. I am still very skeptical on Facebook stock with PE ratio higher than 70 times
  • However, Technical, today's move could be quite bullish. Touching upper Bband, STO. RSI turning around, as well as MACD crossover



  • Groupon, Inc (NASDAQ: GRPN) is still dropping after today's rally on internet stocks. I don't see much signal from the chart besides bearish ones. My positions stopped out days ago after crossing below 50day MA.



  • Organovo Holdings, Inc (ONVO) Pretty much a roller coaster stock. Its book of business is similar to DDD, SSYS. Fundmental prationers can do comparable analysis on their financials.
  • Technically. RSI shows some support on 50 level. Slow STO is making higher lows and higher highs. After the job from $2.00 to $3.39. the stock now closing at $2.44 after today jump for 2.52%. I am looking this stock to trade sideway or within a range within the coming weeks
  • Yelp, Inc (NYSE: YELP) failed to break out the consolidation pattern from above. The stock today jumped 7.38%. I would not have caught my attention until today's jump.
  • Today's jump shows YELP has found strong support from 33% Fibonancci Retracement level. Here is the calculations: (High-Low)/ Previous Low =(29.48-23.72)/17.5 = 32.7%. Pretty precise. I am looking forward to seeing more upward price movement in the coming weeks.
  • RSI ticking up. Slow STO shows oversold signal.
Notable earnings before Thursday’s open: ABB, AET, AUO, AVT, AZN, BEN, BG, BIIB, CAB, CCE, CELG, CL, CME, CMS, CNX, COP, CRR, CS, CVE, D, DBD, DDD, DNKN, EQT, GG, GTI, HERO, HOT, HSY, IMAX, IP, JBLU, JNS, LINE, LKQ, MCK, MJN, MO, MYL, NBL, NOV, NS, NVS, NXPI, NYT, O, ORI, OXY, PCAR, PCP, PDS, PG, PHM, POT, PTEN, RCL, ROC, RTN, RYN, S, SHW, SPG, SWI, TKR, TSM, TZOO, UA, UAL, VLY, VPHM, XEL, ZMH

Notable earnings after Thursday’s close: AAPL, AMZN, APKT, BAS, BMRN, CA, CB, CERN, CINF, CLD, CLWR, COG, CRBC, CSTR, DECK, DV, EDR, EMN, EXPE, IM, INFA, KFN, KLAC, MXIM, MXWL, N, OLN, PFG, PWER, QLIK, RGC, SPF, VAR, VRSN, WRE, WWWW 


Tuesday, October 23, 2012

Oct 23: XRTX, UVXY, TIVO, SPY, COH

Coach, Inc (NYSE: COH) made a run despite the market turmoil today as its sales had shown significant growth due to increase demand overseas. The stock price is now back to above 50 day moving average @ $58.15 with huge volume. Pretty healthy move. There might be a saucer bottom on MA(50).  Definitely put it on our radar.

 S&P 500 ETF (NYSE: SPY) The picture here is even worse than what I have covered on yesterday's post. The index has dropped 20 point or 1.39%, making it close below 50 day moving average. On Balance Volume seems turning around.

TIVO, Inc (NASDAQ: TIVO) surged for 1.02% amid the falling of board market. This movement might show there is some level of support from 50 day moving average.

Proshare Ultra VIX Short-term Futures ETF (NYSE: UVXY) is a fairly newly found levered ETF longing CME VIX index, a.k.a. Fear index. A levered ETF on VIX could bring a hedge to your portfolio buying allotting the very minimum amount of fund in it. I have around 5% of my portfolio holding UVXY to protect my money from market downfall. Given today's surge and positive MACD, upticking RSI and higher highs, UVXY could be a useful tool amid the period where almost half of S&P 500 are announcing their earnings. I don't suggest large holding in UVXY due to the contango VIX futures. Plus, VIX index is highly speculative in nature.

Xyratex Ltd. (NASDAQ: XRTX) is testing if it can fill the gap. On my radar.

Notable earnings after tomorrow’s close: AB, ACOM, AEM, AKAM, AMP, CCI, CDNS, CLF, CMO, CROX, CTXS, EGHT, ENTR, EQR, FFIV, FIO, IDCC, INFN, KBR, LOGI, LSI, OI, ORLY, RRC, RYL, SGMO, SIMO, SPN, SRCL, SYMC, SYNC, TAL, TER, TEX, TLAB, TQNT, TRN, TSCO, TWI, WLL, WYNN, XNPT, ZNGA

Monday, October 22, 2012

Oct 22: COF, GRPN, IDCC, SPY

 Capital One Financial Corp. (NYSE: COF) closes at exact $60.00. I consider it as a corrective move after Friday's breakout of 52w new high. Note that today's volume is lower than Friday's. All MAs, MACD and RSI shows strength. I might initiate a position tomorrow if it does not close below $60.00.

Groupon, Inc. (NASDAQ: GRPN) The picture is not good. it closes below 20,50-day averages. Negative MACD crossover, -ve CMF. Maybe the appreciative move when I shared this stock as a buy candidate was just a corrective move. The stock seems to fail to reverse its trend. I have sold my shares.

InterDigital, Inc. (NASDAQ: IDCC) closed back above 50-day moving average today. The  A/D line is still at high level. I don't see much reason to sell the stock technically, except if you argue earning play is risky. Note that earnings announcement is on this Wednesday (10/24).

S&P 500 (NYSE: SPY) The picture on Standard & Poors 500 are not pretty as well. Closing below 20day MA and very close to 50MA. The index has failed to make higher high for 2 times since October. Volume on red days are generally higher than green ones. Bearish signal from RSI, MACD and CMF. I am planning to add some weight on my bear play on my portfolio besides volatility index (UVXY).

NYSE:TZA is bear 3x ETF on Russell 2000 index. 3X allows you to allot fewer proportion of your money invested to get the hedge or risk-reduction characteristics to your portfolio.

Disclosure: I am long IDCC and UVXY

Thursday, October 18, 2012

Oct 18: CECO, EBAY, SIRI, BIDU, MET, INTC


Career Education Corp (NASDAQ: CECO) made a interesting move. It had a strong move today after hitting 50MA. 50MA ticking up. It could be a turnaround candidate.

eBay Inc (NASDAQ:EBAY) hit as high as $50.94, and close at $50.83, breaking previous 52w high ($50.65). Watch this stock on Friday for a continuation on the move.. As long as the stock stay above 50day moving average, I am confidence in this stock. Bullish sign in STO, MACD, RSI. Looking at 50day and 200day moving averages, the trend seems very strong.


Sirius XM Radio Inc (NASDAQ: SIRI) keep making new high recently. About to touch $3 line. We should see some corrective move after the breakout, considering RSI, STO is hitting overbought level.

Baidu, Inc (NASDAQ: BIDU) is trading below 50 day moving average but getting close to test if it can cross it. Any breakout above $117.20 would be a great entry. BIDU is on my radar now.

Intel Corp (NASDAQ: INTC) is trading at the very lower area of the downward price channel at $21.67 but STO shows improvements, making higher highs. The company reported lower than expected financial results yesterday causing a huge sell off. It is not hard to imagine sell off like this could be over reacted with such significant volume.


Metlife, Inc. (MET) interestingly has a very similar chart with BAC (referred to my yesterday post) There is a confirmed double bottom (W) pattern. MET also made a breakout from previous high $36.52 and closes at $47.11. RSI has not yet shown oversold signal. +ve MACD. ATR decreasing gives indication that we can expect to experience a smaller variance in price. As long as it closes around $35.80-$36.00. I am confidence on MET.

Wednesday, October 17, 2012

Oct 17: BAC, C, JPM, WFS

Bank of America Corp (NYSE: BAC) It is firm down the market bottom has finished in Sept. The stock now is closing the previous high. According to the 100% green volume by price at $9.5-$10 level. If the stock breaks through $9.75, we should see a very strong action upwards. RSI is sloping upwards. there might be a MACD crossover if +ve price action continues, as well as CMF crossover.

Citigroup, Inc. (NYSE: C) Despite the CEO's recent departure, the stock is doing way better than the peers in banking industry. RSI shows oversold level. I am uncertain and doubtful on the recent run. I am looking for a corrective move.

J.P. Morgan Chase & Co (NYSE: JPM) The most healthy trend among other stock I mention today. Upward channel. Bband just finished a consolidation. Stock touches upper band of Bband, healthy MACD, CMF. 

Wells Fargo & Co (NYSE: WFC) has previously reaches oversold level below 40 in RSI (considering in a case of uptrend) The stock has made a run and closes at a $34.47, higher than the previous two day's candlesticks, trying to fill the Gap. Entry order at closing when a price is over 50day MA or $35.0 (filling the gap) is a good way to get involved.

Disclosure: I am long BAC and might initiate a long position in JPM

Oct 16: Possible Value stocks

(Click to Enlarge)

Monday, October 15, 2012

Oct 15: IDCC. OVTI, DDD, IPG, SINA

3D System Corp (NYSE: DDD) makes a higher low and higher high. One more similar action will confirm a new uptrend. However, according to Volume by price, the stock is now priced right. I don't think buying the stock now would endure much downside potential.

InterDigital Inc. (NASDAQ: IDCC) After yesterday drop despite SoftBank M&A pushed tech stocks. IDCC made a significant run today after recent fall. It is very possible that the pull back is done and the uptrend should now continue. I am planning to add more position when I see green action in any size during tomorrow's opening. RSI, Slow STO is healthy. 50-200MA crossed over. MACD is perking up. Accumulative sign shows in Chaikin Money Flow. BUY!

Interpublic Group of Companies, Inc. (NYSE: IPG) showing a uptrend channel. 

OmniVision Technologies, Inc (NASDAQ: OVTI) watch for MACD crossover and trend reversal. Next price with similar volume is at $16-$17 level. A lot of upside potential here.

Sina.com (NASDAQ: SINA) closing around 50 and 200 MA. 50-200 MA crossed 3 days ago. STO at oversold level. This stock is suitable for aggressive traders.

Friday, October 12, 2012

Oct 12: ARNA, UNG, WMT

Arena Pharmaceuticals (NASDAQ: ARNA) just broke the triangle pattern several days ago and moving higher. +ve MACD, Slow STO sign. RSI hold well above 40 which shows strength for the movement.

United States Natural Gas Fund (NYSE: UNG) shows a classic cup and handle pattern. Breakout does not have a significant high volume but still higher than the volume in the declining days. 200MA is turning around. 50-200 crossover earlier this month. Bullish

Wal-Mart Stores, Inc (NYSE: WMT) the chart look very fine, no surprise. Seems there is a strong uptrend. RSI holds well above the level of 50. But mind the turning upside down 50MA.



Thursday, October 11, 2012

Oct 11: GRPN YOKU, S


The 339,000 level on the jobless claim is the best reading for 4 and a half year. Despite low jobless claim, economy is still adding job in a slow rate. Keep updated with next nonfarm payroll and employment data.


Groupon, Inc (NASDAQ: GRPN) had a surge today, showing 50MA is once again a strong support.

Yoku showing a possible bottom play here. Bullish MACD, RSI, Slow STO.

Sprint is in talking with Softbank in Japan. Possible acquisition price is $6 per share. Share went up 20%. I sold at $5.8. I don't prefer buying firms under acquisition talks because upside potential is limited, while a failure in making a mutual agreement would hurt the stock too much. I am satisfied with almost 20% profit in one day.



Wednesday, October 10, 2012

Oct 10: AFFY, IDCC, BKS

Affymax, Inc (NASDAQ: AFFY) Keeps making new high on expanding volume and candlestick body. Caution on RSI level, a closer stop order should be made when entering the trade. Slow STO shows a significant uptrend as well.

IDCC again. Just realize similar corrective pattern pattern before after a boom with extraordinary high volume. Once again, the stock is falling with low volume. I remain bullish on this stock.

Barnes & Noble (NYSE: BKS) There is a breakout from saucer bottom today on this stock. Considering high RSI, corrective moves could be on the way. But for ones who are aggressive, entering any time can still be a good play. +ve MACD, +ve Bullish STO divergence.

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