Shares of NVIDIA Corporation (NASDAQ: NVDA) surged 9% Friday on a huge spike in volume, putting the stock back in the bulls’ favor and setting up a follow-through buying trade for active investors.  On Thursday after the close, the three-dimensional graphics processor manufacturer reported better-than-expected earnings for its fiscal second quarter and upped its guidance. Non-GAAP earnings per diluted share rose 30% year over year to $0.30, above the consensus estimate of $0.20. Revenues increased 13% to $1.1 billion, matching analysts’ estimates. #-ad_banner-#​For the current… Read More

Shares of NVIDIA Corporation (NASDAQ: NVDA) surged 9% Friday on a huge spike in volume, putting the stock back in the bulls’ favor and setting up a follow-through buying trade for active investors.  On Thursday after the close, the three-dimensional graphics processor manufacturer reported better-than-expected earnings for its fiscal second quarter and upped its guidance. Non-GAAP earnings per diluted share rose 30% year over year to $0.30, above the consensus estimate of $0.20. Revenues increased 13% to $1.1 billion, matching analysts’ estimates. #-ad_banner-#​For the current quarter, the company said it expects revenue of $1.2 billion, while analysts were expecting $1.16 billion. All in all, these numbers were nothing to snicker at, and in reaction to the outlook some Wall Street analysts issued positive comments, further fueling the rally.  A number of analysts currently consider the stock to be fully valued. But just as a day trader has a different time frame than a growth investor, so too does a swing trader have a different time frame than a fundamental-based value investor. And there is a… Read More

In addition to a strong fundamental growth story, Monster Beverage (Nasdaq: MNST) has one of the better-looking charts in the consumer goods space. The energy drink company also looks to be a takeover candidate. #-ad_banner-#All of this speaks to a higher stock price in the short to intermediate term. As the energy drink market continues to grow, I can’t help but notice an ever-expanding presence of Monster Energy drinks in grocery and convenience stores. And J.P. Morgan analyst John Faucher recently said the company could be acquired within two to three years. Frankly, it makes sense. Arguably, the barrier to… Read More

In addition to a strong fundamental growth story, Monster Beverage (Nasdaq: MNST) has one of the better-looking charts in the consumer goods space. The energy drink company also looks to be a takeover candidate. #-ad_banner-#All of this speaks to a higher stock price in the short to intermediate term. As the energy drink market continues to grow, I can’t help but notice an ever-expanding presence of Monster Energy drinks in grocery and convenience stores. And J.P. Morgan analyst John Faucher recently said the company could be acquired within two to three years. Frankly, it makes sense. Arguably, the barrier to entry for brewing up a new energy drink is not all that huge. But companies like Coca-Cola (NYSE: KO) and PepsiCo (NYSE: PEP) could surely benefit from acquiring a well-established brand such as Monster, which brings with it access to a new generation of carbonated beverage drinkers. A takeover candidate often makes for an interesting trade, but what really puts the odds in traders’ favor is MNST’s charts. In the multi-year chart, note the ultra-steep slope of the rally in 2011 and the first half of 2012. When a stock’s slope becomes too steep, it often sees a more violent… Read More

Stocks kicked off the third quarter with a nice rally, with the S&P 500 closing just below the much talked-about 1,975 area and the Dow Jones Industrial Average within striking distance of 17,000. Even the small caps, as measured by the Russell 2000, which lagged for most of this year, made a new all-time high.  #-ad_banner-#While the broader U.S. market is reaching some key levels and, in my opinion, could be close to a top for this current cyclical bull market, there are still some stocks out there offering solid long-side opportunities for active traders. Hard disk drive… Read More

Stocks kicked off the third quarter with a nice rally, with the S&P 500 closing just below the much talked-about 1,975 area and the Dow Jones Industrial Average within striking distance of 17,000. Even the small caps, as measured by the Russell 2000, which lagged for most of this year, made a new all-time high.  #-ad_banner-#While the broader U.S. market is reaching some key levels and, in my opinion, could be close to a top for this current cyclical bull market, there are still some stocks out there offering solid long-side opportunities for active traders. Hard disk drive and digital data storage company Seagate Technology (Nasdaq: STX) rallied 3.6% Tuesday in a technically significant move that opens it up for an additional 5% to 6% move in the near future. Considering that the market is still strongly trending higher, going long STX is technically going with the trend. But because I fear we are nearing a cyclical top, I want to validate the trade setup with more than just a good-looking chart.  Tuesday’s rally in STX was the result of positive comments from Brean Capital, which reiterated its “buy” rating and $70 price target. The firm sees “material”… Read More

General Motors (NYSE: GM) continues to reel from its seemingly constant string of recalls. On Monday, the company announced its latest — six new recalls affecting about 7.6 million vehicles.  #-ad_banner-#Yet, the stock has reached an interesting inflection point on the charts, which now offers traders a good long-side setup. In recent months, the news has focused on the company’s failure to detect a faulty ignition switch, which resulted in deaths and the company’s recalls of millions of vehicles.  From an investing standpoint, however, traders need to separate reality from perception. Getting hung up on… Read More

General Motors (NYSE: GM) continues to reel from its seemingly constant string of recalls. On Monday, the company announced its latest — six new recalls affecting about 7.6 million vehicles.  #-ad_banner-#Yet, the stock has reached an interesting inflection point on the charts, which now offers traders a good long-side setup. In recent months, the news has focused on the company’s failure to detect a faulty ignition switch, which resulted in deaths and the company’s recalls of millions of vehicles.  From an investing standpoint, however, traders need to separate reality from perception. Getting hung up on the headlines could cause you to miss out on profits.  Successful trading depends on one’s ability to put emotions aside and stick to a predetermined trading plan. Along the same lines, traders must be able to tune out the noise and focus on the news and price action that matters.   In the case of GM, some worry these massive recalls could bring about the second downfall of the company, but it is important to understand GM’s recent history and its relationship with the U.S. government.  When GM crumbled into bankruptcy under a mountain of debt during the financial crisis,… Read More

The consumer discretionary sector has seen amazing gains in recent years as the economy emerged from the depths of the financial crisis. Judging from the fundamental environment, as well as through a technical lens, the sector’s run in this cyclical bull market doesn’t appear to be over quite yet.  #-ad_banner-#And one stock within the sector that looks to have plenty more upside is California-based shoe company Deckers Outdoor (NYSE: DECK). Just as the broader market’s steep uptrend over the past five years has been met with investor disbelief, many market watchers have long called for the end to… Read More

The consumer discretionary sector has seen amazing gains in recent years as the economy emerged from the depths of the financial crisis. Judging from the fundamental environment, as well as through a technical lens, the sector’s run in this cyclical bull market doesn’t appear to be over quite yet.  #-ad_banner-#And one stock within the sector that looks to have plenty more upside is California-based shoe company Deckers Outdoor (NYSE: DECK). Just as the broader market’s steep uptrend over the past five years has been met with investor disbelief, many market watchers have long called for the end to the rise in consumer discretionary stocks. They rationalized their bearish stance with hand-picked economic statistics, but price is the ultimate arbiter, and they couldn’t have been more wrong. The Consumer Discretionary Select Sector SPDR ETF (NYSE: XLY) has risen more than 300% since the double bottom in late 2008 and early 2009. The trend is up, and until that changes, there’s no sense in going against it and no money to be made fighting it. With the strong uptrend in the consumer discretionary sector intact, I combed through the charts of a hundred consumer discretionary stocks, looking for… Read More

Financial stocks have shown relative strength in recent weeks, and Tuesday’s rally in the sector on a jump in interest rates favors another leg higher. Among the best-looking bank stocks from a technical perspective is Bank of New York Mellon (NYSE: BK). #-ad_banner-#On Tuesday, BK rallied more than 2% and right back to a resistance line that dates back to late March. The stock now looks poised to break past this resistance for another leg higher. One of my early trading mentors told me to always have a watchlist of the big-name broker and banking stocks front and center to… Read More

Financial stocks have shown relative strength in recent weeks, and Tuesday’s rally in the sector on a jump in interest rates favors another leg higher. Among the best-looking bank stocks from a technical perspective is Bank of New York Mellon (NYSE: BK). #-ad_banner-#On Tuesday, BK rallied more than 2% and right back to a resistance line that dates back to late March. The stock now looks poised to break past this resistance for another leg higher. One of my early trading mentors told me to always have a watchlist of the big-name broker and banking stocks front and center to look for clues to the broader market’s direction.  In the longer term, banks facilitate credit and thus help spur the economy. And because the financial sector has the second-largest weighting in the S&P 500, it can impact the market on a daily and weekly basis. On an intraday basis, watching the financials can help you predict the day’s trend. If banks are weak in the first few hours of trading, then more often than not, the broader market has limited upside. Strength in the sector portends gains in the broader market.  On Tuesday, the broader market was weak in the… Read More

Intel (Nasdaq: INTC) made headlines last week when it raised its outlook for second-quarter and fiscal-year sales and gross margins.  The surprising news sent shares of INTC surging 7% on Friday, and it had a ripple effect across the so-called “old tech” sector, including Microsoft (Nasdaq: MSFT) and Hewlett-Packard (NYSE: HPQ).  Friday’s momentum put the wind at the bulls’ backs for the medium term. After peaking in August 2000 and then violently reverting to the mean, INTC spent the next 13 years treading water. Demand for its chips waned over the years as… Read More

Intel (Nasdaq: INTC) made headlines last week when it raised its outlook for second-quarter and fiscal-year sales and gross margins.  The surprising news sent shares of INTC surging 7% on Friday, and it had a ripple effect across the so-called “old tech” sector, including Microsoft (Nasdaq: MSFT) and Hewlett-Packard (NYSE: HPQ).  Friday’s momentum put the wind at the bulls’ backs for the medium term. After peaking in August 2000 and then violently reverting to the mean, INTC spent the next 13 years treading water. Demand for its chips waned over the years as the PC and laptop market became more saturated and mobile computing solutions like smartphones and tablets became more popular. Yet PCs and laptops remain a large part of both the corporate and home computing landscape, and eventually these machines need to be upgraded, creating demand for chips from Intel, software from Microsoft, and hardware from the likes of Hewlett-Packard.  I have seen countless situations where market participants expect a new technology to quickly make any existing technology in the space obsolete. This leads to an overvaluation of the new technology stocks and overselling of the old technology stocks.  More often… Read More

I’m constantly scanning the equity markets for overbought and oversold stocks, as well as those that have seen a flurry of mainstream or social media activity. These names often make for great swing trading candidates.  #-ad_banner-#One oversold stock that recently popped back on my radar is Gogo (Nasdaq: GOGO), a provider of in-flight Internet connectivity and wireless in-cabin digital entertainment systems. The company sells Internet access packages to travelers, who can sign up on a monthly or daily basis.  Having personally used Gogo many times on flights across the country, I am a believer in the service, and… Read More

I’m constantly scanning the equity markets for overbought and oversold stocks, as well as those that have seen a flurry of mainstream or social media activity. These names often make for great swing trading candidates.  #-ad_banner-#One oversold stock that recently popped back on my radar is Gogo (Nasdaq: GOGO), a provider of in-flight Internet connectivity and wireless in-cabin digital entertainment systems. The company sells Internet access packages to travelers, who can sign up on a monthly or daily basis.  Having personally used Gogo many times on flights across the country, I am a believer in the service, and while it could always be improved, I don’t have any major complaints. This month, Gogo reported better-than-expected first-quarter results. A loss of $0.20 a share came in ahead of the $0.25 loss analysts had anticipated. The company also beat on the top line, with revenue rising 35% year over year to $95.7 million. Following the report, GOGO jumped off its lows and has since been forming what looks to be a promising base.  Gogo has been a publicly traded company only since last June. As is often the case with IPOs, investors need time to come… Read More

The major telecommunication stocks always seem to be in focus in one way or another. When not involved in mergers or acquisitions, or being roiled by lawsuits or federal regulations, they are often the focus of dividend-seeking investors. #-ad_banner-#Last week, we found out that Warren Buffett’s Berkshire Hathaway (NYSE: BRK-B), Paulson & Co. and Third Point added positions in Verizon Communications (NYSE: VZ) when the hedge funds revealed their latest quarterly regulatory filings. This information is obviously on a time lag, but the media and public pay attention nonetheless. And, of course, anytime Buffett makes a big purchase, people… Read More

The major telecommunication stocks always seem to be in focus in one way or another. When not involved in mergers or acquisitions, or being roiled by lawsuits or federal regulations, they are often the focus of dividend-seeking investors. #-ad_banner-#Last week, we found out that Warren Buffett’s Berkshire Hathaway (NYSE: BRK-B), Paulson & Co. and Third Point added positions in Verizon Communications (NYSE: VZ) when the hedge funds revealed their latest quarterly regulatory filings. This information is obviously on a time lag, but the media and public pay attention nonetheless. And, of course, anytime Buffett makes a big purchase, people take notice. In the case of VZ, it’s an 11 million-share stake as of March 31, which is valued at about $530 million.  As a result of the hedge fund news, VZ rallied 2.3% Friday in a technically significant move, and it appears the upside momentum will continue. Before we get to VZ’s chart, let’s take a look at iShares US Telecommunications (NYSE: IYZ). From the depths of early 2009 to the recent highs, IYZ has steadily risen. From a technical perspective, the trend remains intact, so the odds of a continuation are good. On the weekly chart… Read More

Luxury electric vehicle maker Tesla Motors (Nasdaq: TSLA) failed to wow investors when it reported first-quarter results last week. A sell-off followed that took the stock down to a technically critical level. #-ad_banner-#Purely looking at the numbers, Tesla did well: Earnings per share (EPS) of $0.12 beat analyst expectations of $0.10. Tesla delivered 6,457 cars during the quarter, slightly beating its guidance of 6,400, and it produced a record 7,535 vehicles. The company stuck with its previous full-year guidance for around 35,000 vehicle deliveries. In February, TSLA rallied on the back of news that the company is planning to build… Read More

Luxury electric vehicle maker Tesla Motors (Nasdaq: TSLA) failed to wow investors when it reported first-quarter results last week. A sell-off followed that took the stock down to a technically critical level. #-ad_banner-#Purely looking at the numbers, Tesla did well: Earnings per share (EPS) of $0.12 beat analyst expectations of $0.10. Tesla delivered 6,457 cars during the quarter, slightly beating its guidance of 6,400, and it produced a record 7,535 vehicles. The company stuck with its previous full-year guidance for around 35,000 vehicle deliveries. In February, TSLA rallied on the back of news that the company is planning to build a so-called Gigafactory to achieve economies of scale in battery production. According to the company, The Gigafactory “is designed to reduce cell costs much faster than the status quo and, by 2020, produce more lithium-ion batteries annually than were produced worldwide in 2013.” TSLA fully retraced this rally in ensuing weeks, but many analysts seemed focused on the Gigafactory’s progress during last week’s conference call. CEO Elon Musk said that plans for the factory are on track and that the company will break ground on the first two projects in June. Musk also said that Panasonic, a well-known battery supplier,… Read More