` Gary Investing Blog: 02/27: ZNGA, SPWR, SPY, UVXY, NOK, AAPL, AGNC, BBRY

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Wednesday, February 27, 2013

02/27: ZNGA, SPWR, SPY, UVXY, NOK, AAPL, AGNC, BBRY

 American Capital  Agency Corp. (NASDAQ: AGNC) experienced a big appreciation after MA(50) crossing above MA(200) which many traders refer as golden cross. MACD is on its way turning positive. Prices has been trading well within upper half of the Bband since the beginning of 2013. To review other technical signals leading me to trade AGNC, visit my post on 02/11, "ZNGA, HLX, AGNC, BSX, LVLT".

UVXY, one of the most tweeted ticker on StockTwits.com for this week so far. Once again, it is trading to break above MA(50) as we have seen during fiscal cliff talks. UVXY is under huge pressure from profit taking and short traders. However, if we take a look at the chart below, SPY, the overall market is not quite bullish as it has seemed, making VXX and UVXY consider trades.

Remark: Trading with VXX and UVXY involves high risk tolerance. Since the contango nature of its futures options, as well as the overnight risks involved, most traders hold fear index fund and option for less than a week. For me, I only do day trade on VXX and UVXY and I have found Fibonacci Retracement (or Arc) is quite accurate in predicting its movement. I might come back to this topic with proofs later this week.

Moving forward, there are numbers of bearish signal on SPY chart.
1) SAR signals for a new downtrend
2) MACD dropping quickly
3) Price closes (Not touches!!) below lower Bband first time since last Nov.
4) Falling OBV

For hedging purposes, I suggest
1) Do not use full margin to buy stocks
2) Consider shorting SPY or selected stocks that you believe will underperform
3) Hedge with put options or VIX


Nokia (NYSE: NOK) has similar action as in BlackBerry except the situation is slightly worse with a huge red candlestick and quicker falling MACD and RSI. Lumia has out-of-expected sales volume and positive reviews. Lumia 1000 is about to come. I have no idea why it is dropping but I have to stay out of NOK for now as I dont see an end to this depreciation.

Zynga, Inc. (NASDAQ: ZNGA) is traded with high volatility for more than a week. Yesterday's afternoon, New Jersey Governor has signed a bill allowing online gambling, which is definitely a good piece of news to ZNGA. However, ZNGA did not show much appreciation which is inconsistent with its action yesterday after Nevada passing a similar bill. Online gambling, as casinos, should be a highly profitable business. I am looking forward to ZNGA making an announcement on its online gambling development or partnership with casinos at Atlantic City.

Technically, ZNGA breaks above MA(200) with huge volume yesterday and a bullish MACD crossover. Also, SAR signals a uptrend. Also $2.84 is a 50% retracement level from $2.09 to $3.75. ZNGA is currently trading at 50cents over its book value.

Apple, Inc. (NASDAQ: AAPL) shows a bearish harami on chart. Also watch out for bearish MACD crossover which it brought massive sell-off previously.

BlackBerry (NASDAQ: BBRY) has broken below MA(50) for days after MACD crossed below zero. The trend is very unclear to me and I suggest you to stay out of it for now until further confirmation.

I have sold all my shares in SunPower Corp (NASDAQ: NASDAQ: SPWR) after it breaking below a flag pattern. SAR signals for a downtrend. MACD falling quickly. I would evaluate the technicals again when SPWR pulls back to $9.12.

3 comments:

  1. What do u think of BAC

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  2. What do u think of BAC

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