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发帖数: 5997 | 1 Minyanville's T3 Morning Call: Solars, Rare Earths Perking Up
By T3Live.com Jan 19, 2011 8:45 am
With China cutting rare earth export quotas, companies have ramped up mining
preparation efforts in hopes of filling the void.
The Minyanville - T3Live Morning Call is brought to you by T3Live.com.
T3Live.com is an online financial media network and education platform that
provides active traders and investors with market analysis, real-time access
to strategies, and in-depth training from real traders, real-time©.
Learn more.
With everyone looking to buy the dip in this market, it sure has been hard
to locate one. Investors have continued to show a large risk appetite
throughout this rally, and even at extended levels it's a story of people
wanting into this market.
Perhaps no better example is Apple Inc. (AAPL), which yesterday opened down
20 points after the company's cult-like figure of a leader, CEO Steve Jobs,
announced his third medical leave of absence from the company. In the past
he has battled pancreatic cancer and had a liver transplant, which leads you
to believe this medical situation is similarly serious.
Apple has been an unstoppable force with consumers and in the stock market,
and many have mooted the only thing that could crimp its growth would be the
exit or passing of Jobs. Yesterday, however, investors eagerly pounced on
discounted shares, closing most of the pre-market gap during the session.
Apple's earnings report after the close rewarded their faith. The company
often under-promises on earnings estimates, but regardless this was a mighty
impressive quarter. It beat on nearly every level of the report, with
headline earnings of $6.43 per share versus $5.40 expected. Yesterday's
headline-driven drop in Apple's stock price was certainly a buying
opportunity after an over-emotional response to the announcement from Jobs.
Rare Earths Reverse Course
Rare Earth stocks were a boon for the better part of four months at the end
of 2010, but have recently pulled in to digest some large moves. The sector
continues to remain almost entirely speculative, with Molycorp, Inc. (MCP)
one of the only companies with actual earnings. However, with China cutting
rare earth export quotas, these companies have ramped up mining preparation
efforts in hopes of filling the void.
See also, What You Need to Know: Rare Earth Metals
Although the rare earths may be a high-risk (and high-reward) trade for long
-term investors, they trade well technically and move quickly, both
positives for active traders, says Scott Redler of T3Live.com. Yesterday,
the two leading rare earth stocks, Rare Element Resources Ltd (REE) and MCP,
staged 80-20 reversals, which means that after several down days in a row
they traded through the previous day's low and back above it. When they
crossed back above the previous day's low, you could have bought them with a
stop at the low of the day.
The reversals also tell Redler that rare earth stocks are ready to climb
back toward highs once more. The strategy today would be to buy REE and MCP
through Friday's high if they get there, with stops at the low of the day
today. Other stocks to watch in the rare earth sector are China Shen Zhou
Mining & Resources Inc (SHZ) and Avalon Rare Earth Metals, Inc. (AVL).
Tuesday was an eventful day in the market, and when you start to see some
more wacky action and volatility, it's a prudent time to lighten up and trim
positions. With the market overbought and earning news on the horizon,
anything could happen the rest of the week. There are still stocks that are
not as extended, see Redler's daily Pricepoint Sheet for additional specific
stock commentary.
In another note, Goldman Sachs Group Inc. (GS) is ticking down pre-market
after a narrow beat on earnings and a narrow miss on revenues. After
Citigroup Inc. (C) missed on earnings pre-market yesterday, it has been a
somewhat difficult start to earnings season for the financials. However,
with President Obama striking a more business-friendly tone after losing
control of Congress, you have to believe the banks can recover and revert to
the mean after being disproportionately beaten down during the economic
crisis.
Magnet Investing: Solars, PWER Heating Up
The advance-decline line was flat yesterday during a wacky day in the market
. As a market lesson, the idea of "buy the rumor, sell the news" works in
reverse with bad news, and we saw that play out yesterday with Apple.
Investors sold the rumor of Apple's demise without Jobs and bought the stock
after the announcement was out of the way and the market opened.
While many were focused on the big headlines with Apple, Jordan Kimmel of
T3Live.com said he remained focused on his list of Magnet stocks with
accelerating revenues and high growth. Despite possible distractions, you
must remain committed to your own strategy to have long-term success in the
markets.
Yesterday we saw some solars heat back up after a few days of rest. The
leader of the group, First Solar, Inc. (FSLR), surged nearly 6% back toward
52-week highs, while the Magnet solar, Chinese company ReneSola Ltd. (SOL),
also jumped more than 6%. The resurgence of the solars once again
illustrates the sector rotation we are seeing week after week. The rest
stage of the bull market cycle is being skipped altogether.
Looking more specifically at positions, power solutions company Power-One,
Inc. (PWER) set off a technical buy signal after being on Kimmel's list of
highest ranked Magnet stocks. The stock has been trading choppily over the
past couple of weeks, but looks to be working its way higher out of a wedge
pattern.
Magic Software Enterprises Ltd. (MGIC) has been number one on my list for a
couple of weeks now, as we have noted here. The stock broke out of a base
Friday and continued to extend yesterday, although it failed on the breakout
. The pullback provides another opportunity for investors to potentially get
back involved. Something positive to note was a volume spike on the
breakout.
Other Magnet stocks to watch are metals and mining company Vale (VALE),
which gapped up yesterday and is set to open higher again this morning. IDT
Corporation (IDT) continues to look strong after breaking a month-long
downtrend. The stock should test $30. Acacia Research Corporation (ACTG) is
currently the number-two ranked Magnet stock and should make a monster move
above $30. | y*****l
发帖数: 5997 | 2 Minyanville's T3 Morning Call: Solars, Rare Earths Perking Up
By T3Live.com Jan 19, 2011 8:45 am
With China cutting rare earth export quotas, companies have ramped up mining
preparation efforts in hopes of filling the void.
The Minyanville - T3Live Morning Call is brought to you by T3Live.com.
T3Live.com is an online financial media network and education platform that
provides active traders and investors with market analysis, real-time access
to strategies, and in-depth training from real traders, real-time©.
Learn more.
With everyone looking to buy the dip in this market, it sure has been hard
to locate one. Investors have continued to show a large risk appetite
throughout this rally, and even at extended levels it's a story of people
wanting into this market.
Perhaps no better example is Apple Inc. (AAPL), which yesterday opened down
20 points after the company's cult-like figure of a leader, CEO Steve Jobs,
announced his third medical leave of absence from the company. In the past
he has battled pancreatic cancer and had a liver transplant, which leads you
to believe this medical situation is similarly serious.
Apple has been an unstoppable force with consumers and in the stock market,
and many have mooted the only thing that could crimp its growth would be the
exit or passing of Jobs. Yesterday, however, investors eagerly pounced on
discounted shares, closing most of the pre-market gap during the session.
Apple's earnings report after the close rewarded their faith. The company
often under-promises on earnings estimates, but regardless this was a mighty
impressive quarter. It beat on nearly every level of the report, with
headline earnings of $6.43 per share versus $5.40 expected. Yesterday's
headline-driven drop in Apple's stock price was certainly a buying
opportunity after an over-emotional response to the announcement from Jobs.
Rare Earths Reverse Course
Rare Earth stocks were a boon for the better part of four months at the end
of 2010, but have recently pulled in to digest some large moves. The sector
continues to remain almost entirely speculative, with Molycorp, Inc. (MCP)
one of the only companies with actual earnings. However, with China cutting
rare earth export quotas, these companies have ramped up mining preparation
efforts in hopes of filling the void.
See also, What You Need to Know: Rare Earth Metals
Although the rare earths may be a high-risk (and high-reward) trade for long
-term investors, they trade well technically and move quickly, both
positives for active traders, says Scott Redler of T3Live.com. Yesterday,
the two leading rare earth stocks, Rare Element Resources Ltd (REE) and MCP,
staged 80-20 reversals, which means that after several down days in a row
they traded through the previous day's low and back above it. When they
crossed back above the previous day's low, you could have bought them with a
stop at the low of the day.
The reversals also tell Redler that rare earth stocks are ready to climb
back toward highs once more. The strategy today would be to buy REE and MCP
through Friday's high if they get there, with stops at the low of the day
today. Other stocks to watch in the rare earth sector are China Shen Zhou
Mining & Resources Inc (SHZ) and Avalon Rare Earth Metals, Inc. (AVL).
Tuesday was an eventful day in the market, and when you start to see some
more wacky action and volatility, it's a prudent time to lighten up and trim
positions. With the market overbought and earning news on the horizon,
anything could happen the rest of the week. There are still stocks that are
not as extended, see Redler's daily Pricepoint Sheet for additional specific
stock commentary.
In another note, Goldman Sachs Group Inc. (GS) is ticking down pre-market
after a narrow beat on earnings and a narrow miss on revenues. After
Citigroup Inc. (C) missed on earnings pre-market yesterday, it has been a
somewhat difficult start to earnings season for the financials. However,
with President Obama striking a more business-friendly tone after losing
control of Congress, you have to believe the banks can recover and revert to
the mean after being disproportionately beaten down during the economic
crisis.
Magnet Investing: Solars, PWER Heating Up
The advance-decline line was flat yesterday during a wacky day in the market
. As a market lesson, the idea of "buy the rumor, sell the news" works in
reverse with bad news, and we saw that play out yesterday with Apple.
Investors sold the rumor of Apple's demise without Jobs and bought the stock
after the announcement was out of the way and the market opened.
While many were focused on the big headlines with Apple, Jordan Kimmel of
T3Live.com said he remained focused on his list of Magnet stocks with
accelerating revenues and high growth. Despite possible distractions, you
must remain committed to your own strategy to have long-term success in the
markets.
Yesterday we saw some solars heat back up after a few days of rest. The
leader of the group, First Solar, Inc. (FSLR), surged nearly 6% back toward
52-week highs, while the Magnet solar, Chinese company ReneSola Ltd. (SOL),
also jumped more than 6%. The resurgence of the solars once again
illustrates the sector rotation we are seeing week after week. The rest
stage of the bull market cycle is being skipped altogether.
Looking more specifically at positions, power solutions company Power-One,
Inc. (PWER) set off a technical buy signal after being on Kimmel's list of
highest ranked Magnet stocks. The stock has been trading choppily over the
past couple of weeks, but looks to be working its way higher out of a wedge
pattern.
Magic Software Enterprises Ltd. (MGIC) has been number one on my list for a
couple of weeks now, as we have noted here. The stock broke out of a base
Friday and continued to extend yesterday, although it failed on the breakout
. The pullback provides another opportunity for investors to potentially get
back involved. Something positive to note was a volume spike on the
breakout.
Other Magnet stocks to watch are metals and mining company Vale (VALE),
which gapped up yesterday and is set to open higher again this morning. IDT
Corporation (IDT) continues to look strong after breaking a month-long
downtrend. The stock should test $30. Acacia Research Corporation (ACTG) is
currently the number-two ranked Magnet stock and should make a monster move
above $30. |
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