` Gary Investing Blog: Trade ideas for Feburary 2013

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Wednesday, January 30, 2013

Trade ideas for Feburary 2013

American Apparel, Inc. (AMEX: APP) has raised to $1.39 from as low as $1.00 since the beginning of 2013. I sold APP at $1.35, waiting for a correction to get back on the boat again. Yet, APP is trading higher and higher. I think the stock is bottoming and the outlook is bullish for the long run. APP has been trading within the upper half of the Bband. Golden Cross last week. But the stock is going up with little volume and high RSI reading these several days. I suspect a little pullback to $1.25 or $1.30 for the least. I will long APP again by then.

LSI Corp. (NASDAQ: LSI) has pulled back quickly to lower end of the channel after touching $7.66, which is a action similar to what we saw when LSI makes a new peak. Golden cross will be coming very soon, probably in 3-5 trading days, I suppose. I have a short term target of $7.8. I totally suggest going long at this level with a stop at $7.00, since we are risking $0.19 for $0.6 profit, which is a 1:3 risk-to-reward ratio.

Intel Corp. (NASDAQ: INTC) has showed support from its MA(50), therefore connecting three troughs, we can get a short term up trend. INTC has been going up slowly with huge volume. RSI is holding well above 40 level, which is bullish in nature.

Research in Motion Ltd. (NASDAQ: RIMM) Despite the huge recent drop, my outlook to RIMM remains bullish. Why? Last time when RIMM reached a new high, it also experienced huge drop with a  bearish MACD crossover. However, RSI did not reach below 40 level and the stock traded flat for a while, then ran up again. I suspect the same would happen this time. Therefore, it would be rare for RIMM to cross below MA(50) or $12.86. I might consider going long RIMM tomorrow.

United States Oil Fund, LP (NYSE:USO) has been reaching higher and higher despite of the high RSI reading. Since Dec12, USO has crossed above MA(50) then MA(200), trading in the upper half of Bband most of the time. It has also filled the gap formed in Sep12. I think we would see expensive gas prices throughout first half of 2013.

Thank you for visiting,

Gary Investing Blog

4 comments:

  1. This comment has been removed by a blog administrator.

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  2. What do you think about TA?

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  3. Solid trend line for RIMM... 12.88 should hold

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  4. I recently checked out the stock of american apparel. As far as a trade goes the stock might be interesting. But considering the huge loses the company has reported over the last several years. I would not want to hold the stock for a long period of time.

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