Referencing my weekly stock radar from Sunday night, I am highlighting a few of the charts below for potential trades. The Santa Claus Rally is here, but as noted in our weekly homework, let’s not get carried away and buy recklessly. Staying patient and sorting through your shopping list for the right buy is essential right now. I expect we could see some weakness in the morning on Wednesday and Thursday as I don’t expect Italy bond auctions to be strong. However, I believe the chase for performance will overrule some of the damage to our markets as we near the end of the year. Dip buyers are anxious and I plan on being one of them if the selling is as weak as I expect it to be.
I’m still eying charts that are showing strength with established trendline support levels for favorable risk-reward buys. In a good market, I am more than willing to buy on breakouts expecting momentum traders to follow. In this market, I am finding that many breakouts are fizzling fast due to overall fearful sentiment and fast profit-takers. With that being said, I am more inclined to make moves near trendline support rather than breakouts.
I would have liked to outline a potential Magnum Hunter Resources (MHR) trade as it was nearing trendline support last week, but after my purchase on Friday (scroll down the StockTalks to Friday for verification), it ran up this morning leaving me in a position that is not a favorable setup for a new swing trade. It is now a momentum stock that can change course at any time, but with the high amount of shorts in it, it could run more as they scramble to cover. Also, you’ll notice that Northern Oil and Gas (NOG) is a stock detailed below that it was not on my original weekly stock radar. NOG just came across my screener today and is another short squeeze candidate.
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Yahoo Finance Profile:
Glu Mobile Inc. engages in the design, marketing, and sale of casual and traditional mobile games worldwide. The company creates games and related applications based on its own original brands and intellectual property, as well as third-party licensed brands. Its original games based on its own intellectual property include Beat It!, Bonsai Blast, Brain Genius, Glyder, Gun Bros, Hero Project, Jump O’ Clock, Magic Life, Stranded, Super K.O. Boxing, Toyshop Adventures, and Zombie Isle. The company’s games based on licensed intellectual property include Build-a-lot, Call of Duty, Deer Hunter, Diner Dash, DJ Hero, Guitar Hero, Family Feud, Family Guy, Lord of the Rings, Paperboy, The Price Is Right, Transformers, Wedding Dash, Who Wants to Be a Millionaire?, and World Series of Poker. It develops and publishes games for the users of smart phones and tablet devices who purchase those games through direct-to-consumer digital storefronts, as well as for the users of feature phones served by wireless carriers and other distributors. The company was formerly known as Sorrent, Inc. and changed its name to Glu Mobile Inc. in May 2005. Glu Mobile Inc. was incorporated in 2001 and is headquartered in San Francisco, California.
Yahoo Finance Profile:
Applied Micro Circuits Corporation, a semiconductor company, together with its subsidiaries, designs, develops, markets, sells, and supports integrated circuits for processing, transporting, and storing information. It offers physical layer products, which transmit and receive signals in a high-speed serial format, and convert high-speed serial formats to low-speed parallel formats and vice versa; framer and mapper products that transmit and receive signals to and from the physical layer in a parallel format are used in high-speed optical network infrastructure equipment; and embedded processor products for wireless infrastructure, wireless LAN, residential, datacenters, and enterprises. The company also offers packet processor ICs, which receive and transmit signals to and from the framing layer and perform the processing of packet and cell headers; and cell switching products that include packet routing switch fabric devices and queuing managers; and printed circuit board assemblies to OEMs. Its products are used in wireline and wireless communications equipment, such as wireless access points, wireless base stations, multi-function printers, enterprise and edge switches, blade servers, storage systems, gateways, core switches, routers, network attached storage, and transport platforms. The company offers its solutions for the enterprise, telecom, and consumer/small medium business markets primarily in the United States, Taiwan, Hong Kong, China, Europe, and other Asian countries. Applied Micro Circuits Corporation was founded in 1979 and is headquartered in Sunnyvale, California.
Yahoo Finance Profile:
Caribou Coffee Company, Inc. owns and operates coffeehouses. The company offers premium coffee and espresso-based beverages, as well as specialty teas, handcrafted beverages, foods, coffee lifestyle items, branded merchandise, and related products. It also sells whole bean and ground coffee to grocery stores, mass merchandisers, office coffee providers, airlines, hotels, sports and entertainment venues, college campuses, and online customers. In addition, the company sells blended coffees and licenses its Caribou Coffee brand to Keurig, Inc. for sale and use in its K-Cup single serve line of business. Further, Caribou Coffee Company franchises its brand to partners to operate Caribou Coffee branded kiosks and coffeehouses, as well as sells Caribou Coffee branded products to partners for resale in these franchised locations. As of July 3, 2011, it operated 407 company-owned coffeehouses located in 16 states and the District of Columbia; and 147 franchised coffeehouses in the United States and international markets. The company was founded in 1992 and is based in Brooklyn Center, Minnesota.
Northern Oil and Gas (NOG)
Yahoo Finance Profile:
Northern Oil and Gas, Inc., an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the Williston Basin Bakken play, the United States. As of June 30, 2011, the company’s principal assets included approximately 158,046 net acres located in the northern region of the United States; and 439 gross wells. Northern Oil and Gas, Inc. is based in Wayzata, Minnesota.
Yahoo Finance Profile:
FSI International, Inc. designs, manufactures, markets, and supports equipment used in the fabrication of microelectronics, such as advanced semiconductor devices. It provides surface conditioning technology solutions and microlithography systems, and support services to the manufacturers of integrated circuits. The company manufactures, markets, and supports surface conditioning equipment that uses wet, cryogenic, and other chemistry techniques to clean, strip, or etch the surfaces of silicon wafers, and supplies refurbished microlithography products that are used to deposit and develop light sensitive films. It provides various technologies, including batch spray processing systems, single wafer cleaning systems, CryoKinetic processing systems, immersion processing systems, and resist processing systems. The company also offers system and subsystem upgrade packages, spare part kits, individual spare part components, robot refurbishment and replacement, and support services that provide product and process enhancements to extend the life of previously purchased and installed systems. It also sells various process, service, and maintenance programs. FSI International, Inc. serves microelectronics manufacturers worldwide. The company was founded in 1973 and is based in Chaska, Minnesota.
As always, do your own homework to see if you agree. Good luck out there.
Mike
At the time of publication, Kudrna was long GLUU, CBOU and MHR but positions may change at any time
