Stock Trading Newsletter May 29
The Week Ahead: With more evidence mounting that the housing sector is deteriorating; weaker sales, 8 month supply, and prices down from a year ago, it would be difficult for the Federal Reserve to raise rates any time soon. Watch the May consumer confidence report on Tuesday, and the 1st quarter GDP on Wednesday. Also the jobless claims figures and crude oil and gasoline inventories are due mid week. Finally the week ends with May auto sales and an important May employment report on Friday June 1.
Stocks to Watch: Coca-Cola (KO) turned up after announcing it is buying vitamin water maker Glaceau for $4 billion in cash to enhance its appeal to a market of increasingly health conscious consumers. Cleveland Cliffs (CLF)) continues to ride higher on takeover speculation from a Brazilian firm. Verigy Ltd. (VRGY) broke out of a tight trading range on solid 2nd quarter earnings and a good 3rd quarter outlook for its semi-conductor test equipment. CDI Corp. (CDI) pushed through a recent trading range after a Goldman Sachs upgrade.
Special Note: Look for volume to gradually increase as the week progresses following the holiday break. Price volatility also looks increasingly likely as the calendar shifts from May to June. Momentum may carry the major indexes to higher highs but then suddenly shift gears in reverse because of technical sell signals like the near term stochastic measure which has turned down. As the rally shows signs of tiring, a strategy of diversification is now key. Profits should be taken to provide cash for a coming correction and potential trading opportunities.
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.
To view all of NobleTrading's historical newsletters, click here.Click here to open an account.
email: info@nobletrading.com
phone: 877.872.3311
web: http://www.nobletrading.com
Stocks to Watch: Coca-Cola (KO) turned up after announcing it is buying vitamin water maker Glaceau for $4 billion in cash to enhance its appeal to a market of increasingly health conscious consumers. Cleveland Cliffs (CLF)) continues to ride higher on takeover speculation from a Brazilian firm. Verigy Ltd. (VRGY) broke out of a tight trading range on solid 2nd quarter earnings and a good 3rd quarter outlook for its semi-conductor test equipment. CDI Corp. (CDI) pushed through a recent trading range after a Goldman Sachs upgrade.
Special Note: Look for volume to gradually increase as the week progresses following the holiday break. Price volatility also looks increasingly likely as the calendar shifts from May to June. Momentum may carry the major indexes to higher highs but then suddenly shift gears in reverse because of technical sell signals like the near term stochastic measure which has turned down. As the rally shows signs of tiring, a strategy of diversification is now key. Profits should be taken to provide cash for a coming correction and potential trading opportunities.
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.
To view all of NobleTrading's historical newsletters, click here.Click here to open an account.
NobleTrading Direct Access Trading
email: info@nobletrading.com
phone: 877.872.3311
web: http://www.nobletrading.com
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