Things I am considering as I am making my decision this morning: Yellow trucking just announced, and it was an ok announcement, they beat the street, yet it was already priced in during thier pre two week climb and the stock is up there but faltering. Plus trucking is highly competitive. The market is up today but there is not too much room more for it to climb, I see some chop ahead. Wait before I verifiy the below option order.
Here is the price off yahoo:
And here is the price action via its candlestick charts:
The reason why I made this pick is two fold:
1. YRC has already priced this average news with a climb that started on October 14th-15th. Look at these two dates and you can see two candles inverted next to each other. Both are about the same size, one has a big tail to the top, and one to the bottom. This is a bottom signal. This signaled a climb that was about to happen and you can see that it did. People were expectant about this stock and so it climbed. When the actual earnings event happened, there wasn't much room to go, especially since the stock was already in overbought territory. So today there was an attempted push upwards from the earnings announcement, then there was a push back with people saying: Isnt this price too much for what this stock is actually worth?
2.The Cubes are in overbought territory, however, I expect them to keep climbing. I think that Yellow is near the cieling even though it could be dragged up further. So to hedge our bet, I am recommending purchasing 2 more stocks. First below, is my take on the QQQ:
As you can see, I do believe there is more room to climb. The stock reversed its top signal with another white candle, and then there was a gap up, which shows strength. So because of this I am going to issue the below stocks and why:
As you can see above, the last 2 out of 4 quarters had good earnings pops. Even though the first quarter says N/A, take a look at the numbers. It went up 7 times what was expected.
The big news is the sales forecasts keep going up every quarter in 2015, and take a look at the Growth Estimates....for the current quarter, 228% compared to the Industry 39% and limp s+p. Look at next quarter. Cable is going to be pretty big. I expect this stock to continue the 2 week climb leading up to the earnings date. Lets now turn our attention to the price action:
A few things here: First of all the stock candle chart is showing "cup with a handle" pattern which is a large technical bullish signal. What about this pattern makes it bullish? First look at the stock dropping down and finding that first bottom. Then the stock bounces up hard, and finds a plateau shelf and starts to slowly climb from there, new strength found at the newer higher level. Historically, charts with this pattern break out and climb upwards. Also the MACD indicator and the RSI have a ways to go before they top out at the repective tops of thier indicators.
When I am picking stocks, I put all of these together in one big Geshalt cooking pot in my head and weigh things out. I add in the analysts estimates because these will have the crowd react to this stock by most likely having people jump on board for a earnings report that they think is going to be glowing. I ride this up and then bail about a day and a half before the earnings report. Most likely what will happen is that the crowd will already price in the good news by the expectation of good news and then when the actual news comes, people will sell it off and move on elsewhere. I know this and play it in a contrarian style. I sell at the top and move on before everyone else sells it.
Now on to the next pick:
2.CSIQ: Canadian Solar Inc. sells its products under the CanadianSolar and CSI brand names. The company offers its standard solar modules through a direct sales force and sales agents primarily to distributors, system integrators, project developers, and installers/EPC companies.
So...this company is all over the place with its multi marketing distribution system. Lets take a look at what the analysts are thinking about what is going to happen Nov 10th for earnings:
The company has had decent pops 2 and a half times out of 4 and look at its growth est. Nice and hefty. Well other people can see this too, and this will lead to people piling on this stock all the way to earnings, bar any big drops in the market. I have looked at the market for about 1 week out and everything looks pretty good.
On to the chart for this stock:
Hey, here is a cup with a handle pattern again showing a bullish pattern. Also the RSI indicator and the MACD are in the right place. Im pretty sure that these are great indicators for a nice little climb right up to earnings.
So what actual orders do we have? Three options, one put and two calls.
Yellow Put Nov:
And the CSIQ call:
And the AAOI call:
I would expect to hold on to the two above calls for about a week or so. I think the nasdaq is going to climb. I would expect to dump the yellow Monday or Tuesday. Out of the three above, yellow is the most dangerous as it could be dragged up by the market climbing next week. The ones above are no brainers due to the reasons listed above.
Thats all for today, check for any article updates this weekend.
Mark
| 20.00 |
0.59
|
0.60
|
0.77
|
-1.61
|
-73.18%
| 201 |
131
|
Here is the price off yahoo:
| Prev Close: | 18.20 |
|---|---|
| Open: | 21.00 |
| Bid: | 21.02 x 200 |
| Ask: | 21.04 x 200 |
| 1y Target Est: | 31.00 |
| Beta: | 1.22 |
| Next Earnings Date: | N/A |
| Day's Range: | 20.68 - 22.72 |
|---|---|
| 52wk Range: | 7.06 - 29.21 |
| Volume: | 2,054,732 |
| Avg Vol (3m): | 689,667 |
| Market Cap: | 656.71M |
| P/E (ttm): | N/A |
| EPS (ttm): | -7.50 |
| Div & Yield: | N/A (N/A |
And here is the price action via its candlestick charts:
The reason why I made this pick is two fold:
1. YRC has already priced this average news with a climb that started on October 14th-15th. Look at these two dates and you can see two candles inverted next to each other. Both are about the same size, one has a big tail to the top, and one to the bottom. This is a bottom signal. This signaled a climb that was about to happen and you can see that it did. People were expectant about this stock and so it climbed. When the actual earnings event happened, there wasn't much room to go, especially since the stock was already in overbought territory. So today there was an attempted push upwards from the earnings announcement, then there was a push back with people saying: Isnt this price too much for what this stock is actually worth?
2.The Cubes are in overbought territory, however, I expect them to keep climbing. I think that Yellow is near the cieling even though it could be dragged up further. So to hedge our bet, I am recommending purchasing 2 more stocks. First below, is my take on the QQQ:
As you can see, I do believe there is more room to climb. The stock reversed its top signal with another white candle, and then there was a gap up, which shows strength. So because of this I am going to issue the below stocks and why:
AAOI: This is a company that manufactures everything for cable. Cable is a big industry that is expanding rapidly with acquisitions and new services. Lets look at the analysts expectations for this upcoming earnings on Novemeber 10th:
As you can see above, the last 2 out of 4 quarters had good earnings pops. Even though the first quarter says N/A, take a look at the numbers. It went up 7 times what was expected.
The big news is the sales forecasts keep going up every quarter in 2015, and take a look at the Growth Estimates....for the current quarter, 228% compared to the Industry 39% and limp s+p. Look at next quarter. Cable is going to be pretty big. I expect this stock to continue the 2 week climb leading up to the earnings date. Lets now turn our attention to the price action:
A few things here: First of all the stock candle chart is showing "cup with a handle" pattern which is a large technical bullish signal. What about this pattern makes it bullish? First look at the stock dropping down and finding that first bottom. Then the stock bounces up hard, and finds a plateau shelf and starts to slowly climb from there, new strength found at the newer higher level. Historically, charts with this pattern break out and climb upwards. Also the MACD indicator and the RSI have a ways to go before they top out at the repective tops of thier indicators.
When I am picking stocks, I put all of these together in one big Geshalt cooking pot in my head and weigh things out. I add in the analysts estimates because these will have the crowd react to this stock by most likely having people jump on board for a earnings report that they think is going to be glowing. I ride this up and then bail about a day and a half before the earnings report. Most likely what will happen is that the crowd will already price in the good news by the expectation of good news and then when the actual news comes, people will sell it off and move on elsewhere. I know this and play it in a contrarian style. I sell at the top and move on before everyone else sells it.
Now on to the next pick:
2.CSIQ: Canadian Solar Inc. sells its products under the CanadianSolar and CSI brand names. The company offers its standard solar modules through a direct sales force and sales agents primarily to distributors, system integrators, project developers, and installers/EPC companies.
So...this company is all over the place with its multi marketing distribution system. Lets take a look at what the analysts are thinking about what is going to happen Nov 10th for earnings:
The company has had decent pops 2 and a half times out of 4 and look at its growth est. Nice and hefty. Well other people can see this too, and this will lead to people piling on this stock all the way to earnings, bar any big drops in the market. I have looked at the market for about 1 week out and everything looks pretty good.
On to the chart for this stock:
Hey, here is a cup with a handle pattern again showing a bullish pattern. Also the RSI indicator and the MACD are in the right place. Im pretty sure that these are great indicators for a nice little climb right up to earnings.
So what actual orders do we have? Three options, one put and two calls.
Yellow Put Nov:
| Prev Close: | 2.20 |
|---|---|
| Open: | 0.68 |
| Bid: | 0.67 |
| Ask: | 0.79 |
| Strike: | 20.00 |
| Expire Date: | 22-Nov-14 |
| Day's Range: | 0.51 - 0.75 |
|---|---|
| Contract Range: | N/A - N/A |
| Volume: | 222 |
| Open Interest: | 131 |
And the CSIQ call:
0.65| Prev Close: | 1.40 |
|---|---|
| Open: | 2.20 |
| Bid: | 2.05 |
| Ask: | 2.40 |
| Strike: | 32.00 |
| Expire Date: | 22-Nov-14 |
| Day's Range: | 2.05 - 2.41 |
|---|---|
| Contract Range: | N/A - N/A |
| Volume: | 44 |
| Open Interest: | 593 |
Quotes delayed, except where indicated otherwise. Currency in USD.
And the AAOI call:
| Prev Close: | 1.30 |
|---|---|
| Open: | 1.30 |
| Bid: | 0.95 |
| Ask: | 1.65 |
| Strike: | 15.00 |
| Expire Date: | 22-Nov-14 |
| Day's Range: | 1.30 - 1.30 |
|---|---|
| Contract Range: | N/A - N/A |
| Volume: | 3 |
| Open Interest: | 150 |
I would expect to hold on to the two above calls for about a week or so. I think the nasdaq is going to climb. I would expect to dump the yellow Monday or Tuesday. Out of the three above, yellow is the most dangerous as it could be dragged up by the market climbing next week. The ones above are no brainers due to the reasons listed above.
Thats all for today, check for any article updates this weekend.
Mark
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