Referencing the weekly stock radar, I am highlighting a few of the charts below for potential trades. We started out the day flat but when treasuries started to run higher, stocks started to pullback for much of the day. This created some consolidation as heading into the afternoon, treasuries started to sell-off slightly and many stocks had a decent close, especially for biotechnology and small-cap oil. The markets continue to show resiliency and intraday weakness is limited as dip buyers emerge. Referencing last night’s article, if ProShares UltraShort 20+ Year Treasury (TBT) can make it above $19 tomorrow, we will have good reason to think we can surge higher past $19.50 giving equities more fuel to rise as well.
Friday I trimmed positions, per my StockTalks, and played defensive early on Monday as well. By the afternoon, I started to add back. Judging from the action today, I am looking for Tuesday to be a bullish day allowing us to be a bit more aggressive, but I will let the action determine so we are reactive as the situation unfolds rather than predict and be caught in the wrong direction.
I’m still eying charts that are showing overall 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.
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Yahoo Finance Profile:
Nanometrics Incorporated provides high-performance process control metrology systems used primarily in the fabrication of semiconductors, high-brightness LEDs, data storage devices, and solar photovoltaics. Nanometrics’ automated and integrated metrology systems measure critical dimensions; device structures; overlay registration; topography; and various thin film properties, including film thickness, as well as optical, electrical, and material properties. The company’s process control solutions are deployed throughout the fabrication process, from front-end-of-line substrate manufacturing, to high-volume production of semiconductors and other devices, to advanced wafer-scale packaging applications. Its systems enable device manufacturers to improve yields, increase productivity, and lower their manufacturing costs. The company was founded in 1975 and is headquartered in Milpitas, California.
Yahoo Finance Profile:
Santarus, Inc., a specialty biopharmaceutical company, engages in acquiring, developing, and commercializing proprietary products that address the needs of patients treated by physician specialists. The company sells metformin hydrochloride extended release tablets under the Glumetza name and bromocriptine mesylate tablets under the CYCLOSET name, which are indicated to treat type 2 diabetes; and omeprazole/sodium bicarbonate capsules and powder for oral suspension under the Zegerid name primarily to pharmaceutical wholesale distributors. Its products under development include Budesonide MMX, which completed two Phase III clinical studies for the treatment of ulcerative colitis; Rhucin (recombinant human C1 inhibitor) under Phase IIIb clinical study for the treatment of acute attacks of hereditary angioedema, and under Phase II proof study for the treatment of early antibody mediated rejection; Rifamycin SV MMX, a Phase III clinical program for the treatment of patients with travelers’ diarrhea, as well as for other diseases with a bacterial component in the intestine; and SAN-300 under Phase I clinical study for the treatment of rheumatoid arthritis. The company was founded in 1996 and is based in San Diego, California.
Yahoo Finance Profile:
Perficient, Inc. provides information technology consulting services primarily in the United States, Canada, and Europe. The company designs, builds, and delivers business-driven technology solutions using third party software products. Its solutions include business analysis, portals and collaboration, business integration, user experience, enterprise content management, customer relationship management, interactive design, enterprise performance management, business process management, business intelligence, eCommerce, mobile platforms, custom applications, and technology platform implementations. The company’s solutions enable clients to operate a real-time enterprise that adapts business processes and the systems that support them to meet the demands of marketplace. It serves Forbes Global 2000 and other large enterprise companies. The company was founded in 1997 and is based in Saint Louis, Missouri.
Dejour Energy (DEJ)
Yahoo Finance Profile:
Dejour Energy Inc. engages in acquiring, exploring, and developing energy projects with a focus on oil and gas exploration in Canada and the United States. It holds interests in various oil and gas projects covering approximately 120,000 net acres located in the Piceance, Uinta, and Paradox Basins in eastern Utah and western Colorado; and the Peace River Arch projects comprising approximately 13,000 net acres situated in northeast British Columbia and northwest Alberta. The company was formerly known as Dejour Enterprises Ltd. and changed its name to Dejour Energy Inc. in March 2011. Dejour Energy Inc. was founded in 1968 and is headquartered in Vancouver, Canada.
As always, do your own homework to see if you agree. Good luck out there.
Mike
At the time of publication, Kudrna was long NANO and DEJ but positions may change at any time
