5 Timely Stocks To Watch
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A new day after yesterday’s distributive
action begins with the futures essentially flat. Global markets are
down across the board in sympathy with the sell-off that occurred yesterday. In
spite of the negative action pessimism has still not wielded a mean intentioned
blow. The put/call ratio is tame. Oil prices are settling in the higher end of
the range. They could ease and likely will after the summer demand for energy
subsides. It has been a hot summer. In spite of high gas prices motorists keep
pumping. That will subside after Labor Day. The season of weakness persists. It
is natural that August delivers a rough ride after a bullish tone dominated the
pace of trade in July. Individual stocks ought to be viewed as separate
instruments and examined on the merit of their own specific pace of trade. I
will share with you 5 stocks that are in various stages of an advance. The time
to be involved in stocks is at times when the trade reflects an advance. It’s
best to get involved with new money at the outset or at a time when a breakout
occurs, suggesting a mature advance continues to deliver solid gains. Here are a
few stocks that provide timely chances to make money:
Baxter International
(
BAX |
Quote |
Chart |
News |
PowerRating) 40.11
I am involved in BAX again. I didn’t make
money in it the last time I got involved and am inclined to believe that the
best way to handle an investment or trade in BAX is employing patience. What the
heck does that mean? Employ patience? It means the best play in the stock is a
buy and hold approach. A buy and hold approach unless the moving averages that
measure long-term technical health fail. Right now BAX is benefiting from a
long-term healthy technical pace of trade. The stock trades nicely above its key
inflection points. It is in positive shape short-, intermediate- and long-term.
The fundamentals are not shabby. It is a good stock to be in. It leads a bullish
group. Most of the 16% gain for the year has occurred recently. That’s its way
of saying that the advance could get more serious. That is the reason I am
involved in the stock. I am willing to take a small risk to capture a satisfying
gain. I am building a position in this favorable instrument. The 39-39.50 zone
looks interesting with stop under the 50 and
200-day line.
Compania de Minas Buenaventura
(
BVN |
Quote |
Chart |
News |
PowerRating) 24.65
A Peruvian mining company turns out to be a good
hedge but that is not why I am involved in it. I am involved in it because the
technical underpinnings are solid and the advance it currently expresses ought
to persist. It trades at the top of its long-term base and is on the verge of
breaking out. The advance is young. Volume has helped lift the stock to the
point of breaking out recently. It is on the verge of ramping to challenge its
52-week high above 31. I am looking at the 23.50-24 zone with a
stop at the 200-day line (22.50)
Companhia Energetica de Minas Gerais —
(
CEMG |
Quote |
Chart |
News |
PowerRating) (CIG) 34.23
I believe that this instrument will deliver gains from
this point going forward. That is why I am involved. No other reason. The pace
of trade offers evidence of an advance that indicates higher price points. CIG
is up over 39% this year and over 100% in the last 52 weeks, so the advance is
not young. It is extended, so buy it coming in. Use soft modest selling pressure
to take advantage of the current advance. It is the tactic I plan to employ.
Buying the stock in stages over this time period as long as it trades in a
positive manner and stays above key lines of support leads to fulfilling the
original intention. If support caves then I am weary of the relationship and am
flexible and free to dispose of the shares. I am using the 200-day line to stop
the loss. A good price point to begin a position is 33.
Medtronic
(
MDR |
Quote |
Chart |
News |
PowerRating) 54.65
The jagged edge. That is what this instrument reminds me
of. A jagged edge. It has been a tough stock to own because of its choppy pace
of trade. I am involved once again, considering the current pace and favorable
odds to break through the 52-week high once and for all and establish at that
point a decent support zone. The stock has to cross 55.50 on a close to get more
serious about building the long position. I took an appetizing position and will
go for the main course given a rise above that point. It pays to get involved
given the favorable odds and low risk. It is not extended. The advance, should
it occur, is just getting started. Most of the 10% gain that occurred this year
and for the last 52 weeks is recent. Place the stop at 51.75
Cypress Semiconductor
(
CY |
Quote |
Chart |
News |
PowerRating) 14.75
It’s good down to 14.50. I am in it and am willing to
pick up more shares because I trust what the chart is telling me. I don’t listen
to my feeling at all. I just let the pace of trade tell the tale and the stock
is just adjusting an extended condition. It is in very good shape fundamentally
and technically and the young advance ought to persist. It has a good chart. Let
the chart tell the tale. Be guided by the price action over a longer period than
a day. I say the stock has the trading disposition to attack the 20-dollar zone
before the advance concludes. Place the stop at 13.49 and 11.99.
Jack Rothstein
Jack Rothstein is the President of Rothstein
Investment Advisory Services, Inc. and is a 20-year veteran stock trader and a
money manager.
Mr. Rothstein also writes Wealthcast, a monthly newsletter about the technical
behavior of the markets. He has been quoted on Bloomberg, CNNFn, the Dick Davis
Digest and the Dow Jones Newswire. Since 1993, Mr. Rothstein also hosted
WealthCast, a radio show in the Washington DC area covering the stock market.