Game Plan for the Week of 11-10-13 through 11-16-13

Last week I was playing Cisco (CSCO) to the upside on a pre-earnings play.  Made a nice profit and got stopped out of the position on Thursday.  I entered the trade Monday at a bid price of $1.06 and got stopped out at an ask price of $1.52.  All-in-all, a fairly good gain.

On Friday, the Non Farm Payroll report came out.  It was an outstandingly good report.  The market was expecting somewhere in the realm of 100,000 new jobs, and instead about 200,000 new jobs were created in the private sector.  Now, most pundits (myself included) expected the market to react negatively to this news because it would give the Fed extra excuse to taper.  The market did, in fact, open lower and fall lower during amateur hour.  However, the market rebounded and ended closing near all-time highs.  For once, Wall Street actually responded positively to good news, which was refreshing.

The market calendar and the years-end rule both dictate that the market should rise going into Thanksgiving, followed by a sell-off from after Thanksgiving into the end of November.  Currently, there are three very nice upside signals on JPM, C, and NVDA.

C is currently caught in a triangle pattern, between a narrow support and resistance band, which may limit it's upside.  This makes it the least attractive of the three.

JPM has a HRFP going up, and this signal is coming off of a very long-term up trend line (making it even more attractive).  The only knock on JPM is that, historically, it goes down in the month of November.  Even though the charts are showing a strong upside tendency, this goes against history, raising some caution in my mind.

NVDA is coming off an earnings beat.  It has a HRFP going up, and this signal is coming off of a very long-term up trend line (making it even more attractive).  In addition to this, historically NVDA goes up in the month of November, making it even more attractive on top of that.

The combination of strong upside signals, post earnings potential, and historical success make NVDA a very nice upside play in my mind, with JPM coming in second.  C may wind up being a good upside play if it can break through resistance and bust out of the triangle pattern it's in.

And now the charts...

Nvidia (NVDA)

JP Morgan (JPM)

Citi Bank (C)

End of July Trends

I decided to try something new.  Since it's the end of July, I took a look at all my trend charts (aka - weekly charts) and did a review of them.  I'll be posting the ones here where I noticed an actual trend, or where I noticed support/resistance levels that are set to be broken.

The thick pink lines on each chart denote either a trend, a support, or a resistance.

Apple (AAPL)

AMD (AMD)
AMD looks like they broke below resistance on the weekly

Citigroup (C)

Goldman Sachs (GS)

Nvidia (NVDA)

Sandisk (SNDK)

Does not have a trend, but DOES have a fat pitch going down on the weekly

Yahoo (YHOO)

July 15th, 2013

Really slow news day and not a whole lot happening, but then again it's rare to have an action packed day during the summer anyway.  Most indexes posted very small gains, and appear to be topping out in preparation for a short-term fall.

News items for the day include China reporting a 7.5% advance in their country's GDP, which was in-line with estimates.  Citigroup, one of the largest banks in the country, posted better than expected profit and revenue for the most recent quarter.  This is a good sign for the banking industry in general.

On the whole though, most of the market was quiet and seems to be waiting in anticipation for a possible short-term dip.  I'm still bullish long term, but short term (ie: the next month or so) I think we'll see stocks dip.

Oh and just to take another look at BMY to see if my prediction of it going down will come true...