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Weekly Reversal Report 4/3/2015 : Nothing Passed The Screens, But Two Stocks Look Interesting In The Future Perhaps

Image Credit: CBSNews.com

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These articles describe the statistical probabilities of long positions on equities mentioned, based on neural net projections, for the next 5-15 trading days. These are not holy grail methodologies, the road to easy street, or anything else. These projections are the result of screening for technically significant retracement and momentum patterns that have been further screened for value and bullish sector performance. In other words, the projections are for long positions. REMEMBER, TRADING AND INVESTING ALWAYS (NOT SOMETIMES, BUT ALWAYS) INVOLVES A RISK OF LOSS! This information is provided for educational purposes only!

 

As I mentioned last week, this will be a gradual transition to weekly and hopefully soon daily reporting. I will have to add a few features in the new screens to make the overall market reviews the way they were, but that is coming soon. I am still working on the studio items (and learning a new video editing software package). That will take some time, but hang in there with me, its coming.

Review of last week’s selection:

CFG (Citizen’s Financial Group, Inc.) is moving toward its first target around 25.10. RBS’s sale of stock was well received by the investors and traders public last week, and despite the nastiness of latter week action, the stock moved forward Thursday. Futures sold off strongly based on reaction to the weak U.S. employment data, and that could put a damper on things, but at least there was strength in that stock and in parts of the regional bank equity sector at this time. I would watch my stops in case there is a bit of craziness in the early morning Monday. The stock maintains the characteristics it had when the neural net model picked up on it, so one now much monitor the position.

What was seen in the screens over the weekend?

I think the most interesting thing was that computer memory devices and semiconductor equipment stocks began to register on the reversal screens, as well as cellular telecom, a few equity REITS, Petroleum Explorers like LINE, and CJES, and other regional brokers (sort of following the trend of CFG). Foreign ETFs were also being purchased on Thursday. The sad part is, none of them were quite passing the final screens for selection. Here are the charts for both:

The two stocks that were closest though were LRCX (Lam Research) and STX (Seagate Technology). Charts below are courtesy of Stockcharts.com

http://stockcharts.com/h-sc/ui?s=LRCX

http://stockcharts.com/h-sc/ui?s=STX

The thing that is interesting about these particular names are dividend yield and competitive products (in the case of LRCX products) as prices for chips and devices begin falling.

I do not like the fact that there was a gap fill on LRCX that has reversed and fallen back, but it does seem to be finding buyers at those double bottom lows. Credit Suisse is attempting to promote business prospects in the coming quarter for its 3D NAND chips . The fact that brokers promote this is not really a reliable indicator of strength, but there was buying in the stock over Thursday, and should price symmetry and volume improve, the nets might like it better. I think it is a stock that one should at least keep on the radar.

STX is undergoing a share buy back program, and pays a nice dividend as well (roughly 4.1%). Again, it seems to be holding support at the moment, so it is best, at least from my perspective, to keep it on a watch list and see if the nets will give it greater love as time goes forward.

As we get a clearer picture on oil prices and energy consumption, there are names out that that will begin to pop up on a value basis that institutional and individual investors will begin to accumulate again. I will be on the lookout for those as well.

That is all for now. Let me know what you think about this and other posts in the comment section and at thebuffalotrader@gmail.com. More helpful information is coming in the future! Thanks again for suporting this blog!

 

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