Saturday, September 19, 2009

NVEC at Support

NVE Corp (NVEC) develops and sells spintronic devices (nanotechnology).

The stock has been in a strong uptrend in 2009 and has consistently found support at the 50-day moving average, providing a clear buy signal when the price touches the line and presumably a good stop level for traders. The stock tested the 50 DMA ($53.33) on Friday with a low of $53.50 (it recovered and closed at $54.66).

Another consistent feature of the trend has been the ability of RSI to signal buy points. As indicated by arrows in the chart below, the stock tends to recover soon after breaching the 50 level in RSI. Note that RSI dropped below 50 on Friday. RSI has also signaled short term tops throughout the uptrend.

I've included MACD and Stochastics in the charts below. They are providing mixed signals for the short term movement (MACD lines did not reach a new high with the recent peak, but the Stochastics from the sideways trending period Aug-Sept showed a bullish divergence preceding the peak).

Strategy: The RSI is signaling a buy here or ideally at a retest of the 50 DMA, with a stop just below the moving average.

Friday, September 18, 2009

CQB Call Volume Spikes

Chiquita Brands International, Inc. (CQB) distributes and markets fresh produce. CQB triggered my unusual options volume alert today when over 10,000 of the $17.50 October calls traded (versus open interest of 2,613). Crimson Mind later reported that the contracts had traded in a block of 10k at the ask of 35 cents. Less than 250 CQB puts traded today. The underlying stock closed at $15.52 (down $0.01).

Trading History: September 18th, bought CQB for $15.64
Current Position: Long CQB ($15.64)

Wednesday, September 16, 2009

THOR Breaks Out

Thoratec Corp (THOR) develops and markets medical devices. The stock is now up over 3% for the day to $28.90 on above average volume. It has taken out the August high of $28.36.

CCJ Quadruple Top Breakout

Cameco Corp (CCJ) is involved in the uranium mining, nuclear energy, and gold mining industries.

CCJ made highs of $29.60 in June, and $29.53 and $29.66 in August. CCJ is currently up nearly 3.5% for the day to $30.40 on above average volume.

Update (September 21st): The rally has broken down. CCJ looks to close below $29.50. The next major support is at the 50-DMA (about $28), so I sold the stock and took the loss.

Trading history:
September 16th, bought CCJ for $30.30
September 21st, sold CCJ for $29.34 (-96 cents, -3.2%)
Current position: None.

KOP Breakout

Koppers Holding, Inc. (KOP) is a manufacturer of carbon compounds and commercial wood treatment products used in various industries including railroads, utilities, rubber, and steel.

KOP looks to be breaking out of a multiple top formation this morning on heavy volume.

KOP made highs of $29.25 in June, $29.33 in August. KOP's current price is $29.89.

Trading History:
September 16th, bought KOP for $29.52
Sepetember 16th, sold KOP for $31.21 (+$1.69, +5.7%)
Current Position: None

Tuesday, September 15, 2009

IPHS Breakout Watch

Innophus Holding, Inc (IPHS) is a specialty chemical manufacturer (phosphate). It trades at less than 10x earnings.

IPHS triggered my breakout watch alert this afternoon when it topped $20.41. The chart for IPHS shows an ascending triangle with multiple tops in this zone: $20.35 in January, $20.28 in May, $20.41 in August.

Volume is light, and it looks like IPHS will close below the breakout price. But I'll be keeping a close watch for follow through on today's price action for the remainder of the week.

KALU Breakout

Kaiser Aluminum Corp (KALU) is attempting to breakout this morning from a triple top ascending triangle. Previous highs being taken out from November 2008 ($37.67), June ($37.41) and July 2009 ($37.33). KALU has traded as high as $38.14 today.

Trading history:
September 15th, Bought KALU for $39.47
September 15th, Sold KALU for $40.57 (+$1.10, +2.8%)