` Gary Investing Blog: January 2013

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Thursday, January 31, 2013

1/31: DDD, GRPN, AAPL, NOK, NFLX, ZNGA

 3D System Corp. (NYSE: DDD) has been traded down from $71.89 to as low as $54.01 today. Today's action tested its validity of the support from MA(50). It is also a hammer on chart which signals for a short term trend reversal (uptrend will be back soon!!!)

Groupon, Inc. (NASDAQ: GRPN) is reaching back to its high, $5.59, since Sep12 and has touched upper Bband again with a saucer bottoming MA(50). A break above $5.6 will trigger massive buying power and speculation. From the current chart, GRPN looks very bullish and there is no reason to short this stock. Bullish MACD crossover is about to come.

Apple, Inc. (NASDAQ: AAPL) I can't address more that AAPL seems to lose its love from institutions and funds managers. First of all, I don't think AAPL will ever get back to $500. Even if it touches $500, there will be a massive liquidating action both individually and institutionally. Tuesday's candlestick shows a doji on chart, which signals the bounce back cannot hold. I shorted AAPL since it was $600 and I am planning to cover my shorts when it hits $400,

Nokia Corp. (NYSE: NOK) If you are long NOK, you should be hoping NOK shows similar action as we have seen in DDD. I have a stop at $3.8, roughly 3% below MA(50), which I believe is a major support. It is also important for NOK's RSI to hold above 40 level.

Netflix, Inc. (NASDAQ: NFLX) I missed the boat when I sold my NFLX shares at $90.00. But looking on NFLX's chart again, it seems currently forming a flag with decreasing volume along the formation. Watch for a breakout both above or below. If breaks a above, I think NFLX can reach $200.00 in a short time. If breaks below significantly, I would not be surprise to see NFLX filling at least half the gap, reaching $120.00. (50% retracement)

I feel so pround that I did not sell Zynga, Inc. (NASDAQ: ZNGA) when it drops more than 10% in two days. Running up 7.11% today tells us its uptrend is still intact. One of the reasons I did not sell ZNGA is that down (red) days has much little volume then up (green) days. My ST target for ZNGA is $3.00.

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

Facebook, Zynga, NVDA, CHK, JBLU

Facebook, Inc. (NASDAQ: FB) Despite the fall yesterday, Facebook is still closing above its uptrend since Nov12. Stop slightly below $30.00.

 Chesapeake Energy Corp. (NYSE: CHK) has jumped more than 20% since the beginning of 2013. Now, CHK is forming a flag pattern on chart with decreasing volume. If there is a breakout above $19.00, I would have a short term target of $21.55.

After NVDIA Corp. (NASDAQ: NVDA) broke below its short term uptrend in the first week of 2013, it has bounced back to $12.690 level and testify its break below. After yesterday's drop (2.14%), it seems that a downtrend has begun. I would not be a bad idea to short NVDA and put a stop at $12.70.

JetBlues Airways Corp. (NASDAQ: JBLU) has dropped 2.65% with significant volume after reporting a decrease in profit, mostly due to Hurricane Sandy. Bearish MACD crossover. The price is leaving the upper Bband while Bbands consolidating. I believe JBLU would at least drop until touching $5.550.

Zynga, Inc. (NASDAQ: ZNGA) I really don't know what to say about ZNGA. I did not expect such a huge drop today after yesterday's jump. However, the good news is:
1) Today's volume is less than yesterday. So, there are fewer profit-takers than speculators jumping on the boat yesterday
2) Today's low is higher than yesterday's one and today's higher is lower than yesterday's one. So, there could be a flag pattern coming up.
3) RSI did not reach overbought level yesterday

Even though I still long ZNGA, my outlook for ZNGA is very mixed. I have put a stop at $2.40 just to prevent extensive loss from this volatile stock.

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Thank you for visiting,

Gary Investing Blog

Tuesday, January 29, 2013

6 Stocks on watch for today

Even though Apple, Inc. (NASDAQ: AAPL) has bounced back 2.26%, closing at almost $450.00, it failed to close higher than the opening price of the previous day and reached a low almost as low as yesterday's low. The outlook from this kind of short term candlestick pattern is usually bearish. Percentage of institutional ownership has already fell to 67% while it was 70%+ half an year ago. As mentioned, I still short AAPL, targeting $400.00.

 After I mentioned Caterpiller, Inc. (NYSE: CAT) in yesterday's post, CAT really jumped almost 2% after touching centerline of Bbands, MA(20). It is a full formation of a double bottom pattern with a breakout and pullback to the neckline. I have a target of $100.00 in the short run as we are reaching a major psychological resistance, but I believe CAT has no problem with getting back to the $115 level as in early 2012 in the long run.

Alpha Natural Resources, Inc. (NYSE: ANR) has fully formed a head and shoulder pattern with a breakout below $9.00. MACD is about to cross below zero. The outlook is very bearish even though golden cross might be coming anytime next week.

First Solar, Inc. (NASDAQ: FSLR) touches MA(20). Should it find support from MA(20) and start another round of appreciation? Keep FSLR on your radar. I remain bullish on FSLR unless it closses below $29.00.

 Nokia Corp (NYSE: NOK) Told you to be patient on NOK. The recent fall is just people taking profits. NOK has found support from its uptrend and trading as high as $4.35 yesterday. As mentioned, I would be shocked if NOK dropped below $4.00.

Zynga, Inc. (NASDAQ: ZNGA) jumped 14.06% yesterday after touching its lower band of the upwards channel, making ZNGA closing above its gap $2.75 in one day with HUGE VOLUME. I am bullish on ZNGA but might consider selling partial positions when it touches $3.0.

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Thank you for visiting,

Gary Investing Blog

Monday, January 28, 2013

1/27: FB, BAC, CAT, JPM, F

Bank of America Corp. (NYSE: BAC) has gained from $11.02 to $11.62 after the price touches the lower Bollinger Band. MACD histogram is recovering. I think BAC would quickly gets to $12.0 and if it breaks above $12.19, we would see a huge buying power.

Caterpillar, Inc. (NYSE CAT) has pulled back to as low as $94.66) on Friday. Bearish MACD crossover. I believe there would be a great support from the centerline of Bbands, $94.32 or $93.00 where the gap ends. This outlook makes CAT a good long candidate will low risk-to-reward ratio. If support is found and uptrend still intact.  CAT can get to $100.00 soon.

Ford Motor Co. (NYSE: F) has pulled back to around MA(20). Bollinger bands are narrowing. If support is found on MA(20) or when RSI hits 50 level, I expect an uptrend with the same slope and length as the one we saw in mid-Dec to mid-Jan. After all, Ford Motor is falling with little volume which is a bullish sign.

Facebook, Inc. (NASDAQ: FB) has been following the MA(50) pretty nicely since it has turned around from bottoming.  Bullish MACD crossover last Friday. Prices are closing within upper area of Bollinger bands most of the time. I remain bullish on Facebook.

J.P. Morgan Chase & Co. (NYSE: JPM) makes a new high on Friday, closing at $47.16) Prices have always been closing in the upper-half area of Bollinger bands. Bullish MACD would be coming anytime which would bring another wave of appreciation.

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Thank you for visiting

Gary Investing Blog

Friday, January 25, 2013

Quick Updates on 4 Stocks

 Told you guys to be patient on Apple (NASDAQ: AAPL). It has made a new low after reporting its first drop in profits in 10 years, touching $450. It has down 13.35% with huge volume. Bearish MACD Crossover. I think AAPL could get down to $400 soon but find very great psychological support from $400.

First Solar, Inc. (NASDAQ: FSLR) has pulled backed to the level around MA(50) after reading a new high. Keep an eye on FSLR as it may show great support from MA(50). If it closes below MA(50), I think it could get back to $24.00 level soon. Otherwise, I remain bullish on FSLR.

Jefferies Group, Inc. (NYSE: JEF) has broken above last high $19.20 closes at $19.45 yesterday. Bullish MACD crossover coming. Ming the high RSI reading and light on volume. I suggest a tight stop order, maybe around $18.5-$19.0.

Nokia, Corp (NYSE: NOK) has dropped more than 8% after reporting just-met-consensus earnings and 22% decrease in net cash. Bearish MACD crossover. However, I think the outlook is not so bad yet until it crosses below $4.00.

Sunday, January 20, 2013

3 Stocks to Watch This Week + SPY Summary

3D System Corp (NYSE: DDD) has continuously shown appreciation for weeks already. I still long DDD yet find it hard to believe its crazy bull myself too. I sold half of my shares back when DDD was trading at $60.00. RSI is currently still at overbought level. And DDD jumped 4.24% on Friday with lower-than-average volume. I expect some kind of profit-taking and correction very soon.

 SPY is closing at its highest level since last Sept after better-than-expected numbers. SPY traded with more volume on green than red days. However, RSI is approaching overbought level. I expect SPY trading in a horizontal channel and above $145.00 in the coming month(s).

Tellabs, Inc (NASDAQ: TLAB) once again closes above MA(50). Friday's candlestick was an inverted hammer, a reversal pattern. Volume breaks above its downtrend since early last December. MACD is about to cross above its signal line, which triggered huge appreciation when it crossed last 2 times. I have a target of $2.70 if it closes above $2.30. Due to its small cap, remember to use stop order. I suggest somewhere just below $2.15.

I have mentioned Delta Air Lines Inc. (NYSE: DAL) in early December on its breaking above weekly ascending triangle. Delta has jumped from $10.00 to as high as $14.11 (41.1% gain) in less than 2 months. DAL has closed lower for 2 days already but very little volume. Many has mentioned its possible pullback due to its persisting high reading in RSI on Twitter. But I think even a correction takes place, DAL won't close below $12.71 (MA20) as down volume is MUCH less than up volume. The chart still look pretty good for entry, even at the current level.

Thank you for reading Gary Investing Blog
Please also follow me on Twitter: www.twitter.com/GaryLee_HK for updates during trading hours

Tuesday, January 15, 2013

1/14: NVDA, ONVO, ARNA

 Organovo Holdings, Inc. (OTC: ONVO) is an bio-printing company, gaining huge volume and price appreciation recently. Watch for huge action after breaking above $4.00. ONVO is not trading above both 200 and 50 MA. I have no position on ONVO yet but it is on my radar.

Arena Pharmaceuticals, Inc. (NASDAQ: ARNA) As I mentioned, broke above a huge ascending triangle last month. ARNA also broke above a flag pattern and closed above $10.00 at $10.20. MA(50) is trending up and should give huge support to ARNA. Absolutely a long candidate and good level for entry now. I have no position on ARNA yet, and will consider initiating one.

NVDIA, Corp. (NASDAQ: NVDA) has broken below its rising channel yesterday. Negative MACD and signal line is about to cross below 0. I still long NVDA and will stop out if it closes below $12.00 which is also lower than 50(MA).

Sunday, January 13, 2013

3 Stocks to Watch: APP, RIMM, GMCR

After Nokia jumped, Research in Motion Ltd. (NASDAQ: RIMM) have again found support from MA(50) and jumped 13.76% last Friday with huge volume. MACD is about to crossover. MA(200) is showing a saucer bottom. Long Candidate for sure. Stop below MA(50).

 Green Mountain Coffee, Inc. (NASDAQ: GMCR) broke below its minor uptrend last week but pulled back to the trendline last Friday. If it finds resistance from $42.00 and fails to break above, it signals a downtrend or correction begins. If so, next support is MA(50).

I have been mentioning American Apparel, Inc. (AMEX: APP) since last October on its bottoming when it is trading well below $1.00. Now, I see a inverted head and shoulder pattern formed and recent high at $1.230. MA(200) and MA(50) are both slowly trending upwards.

Thank you for visiting Gary Investing Blog

My Twitter: GaryLee_HK

Friday, January 11, 2013

3 Stocks to Buy: FB, ONTY, NOK

 Facebook, Inc. (NASDAQ: FB) has broken above $30.00 psychological level and heading higher. Positive MACD with widening Bbands and increasing volume. I think the uptrend is quite definite. It is a good idea to go long and stop at around or slightly below $29.00.

As mentioned in Twitter, I went long Oncothyroen, Inc. (NASDAQ: ONTY) two days ago due to its Bullilsh MACD crossover, Oversold RSI and potential gap filling action coming. Up 3.80% after yesterday close. Put it on your radar.

Nokia Corp. (NYSE: NOK) has jumped almost 20% with huge volume after strong pre-earnings announcement and surprising sales volume of its smartphone, Lumia. I have been mentioning this stock for months.  I believe this stock still has a long way to go. I am not planning to liquidate my shares at the moment. Bullish MACD could come anytime and might trigger another round of hype. NOK has 12% institutional ownership now.

AAPL institutional ownership, on the other hand, dropped to 67%.

Wednesday, January 9, 2013

Brief Comments on EDU, NVDA, ARNA

 New Oriental Education (NYSE: EDU) has been following MA(50) pretty nicely since last October. MA(50) could cross above MA(200) in the coming weeks. EDU has now pulled back to MA(50), making it a great level for entry.

NVDIA Corp. (NASDAQ: NVDA) after breaking above the downtrend last December, it has been making higher highs and higher lows. NVDA is now trading near the bottom of the channel. It is a great opportunity to go long and target for $13.5 in the short run.

Arena Pharmaceuticals (NASDAQ: ARNA) has broke above Oct's high, closing at $10.11 with HUGE volume. Technicals look great as ARNA closes well above MA(50) and $10.00 psychological level.

Tuesday, January 8, 2013

01/07/2012: NOK, WAC, AMZN, FSLR, FB,

 Facebook, Inc. (NASDAQ: FB) has broken above a triple bottom pattern with great volume. Bullish MACD crossover told place yesterday. Bbands are widening with price closing well around upper band. I think it is a great opportunity to go long Facebook at this level. Stop around $27.37, MA(20).

First Solar Inc. (NASDAQ: FSLR) has pulled back significantly yesterday after making a new high. It would not be surprising to see this stock dropping till MA(20) or lower Bband. But I initiated a long position yesterday anyway due to the fact that RSI is dropping very quickly from overbought level and we should see support when RSI is around 50 level, like FSLR has always been. FSLR has been following MA(50) pretty nicely since last August and usually closes in the upper half area of the Bband.

 Amazon, Inc. (NASDAQ: AMZN) has retrieved quickly from the drop last Oct and Nov, making a new high yesterday. Bulllish MACD crossover and support found on MA(50).

I previously mentioned Walter Investment Management Corp. (AMEX: WAC) and gave a sell signal due to a possible head and shoulder pattern on chart. But the stock has been doing great for 2 trading days, making a new high with significant volume. Bullish MACD crossover yesterday. I would trade a breakout above $48.54 with a stop at MA(50), $42.00.

Nokia Corp. (NYSE: NOK) has gradually closing higher. Bullish MACD crossover. NOK is trading with decreasing volume while approaching last high, $4.35. Again, I think NOK is turning around. A breakout of a new high is great signal to go long NOK.

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