Trade Tips For 7th May 08

RSI = Relative Strength Index
Slow Stoc = Slow Stochastics
MFI = Money Flow Index

S1 = 1st level of support
S2 = 2nd level of suppport

R1 = 1st level of resistance
R2 = 2nd level of resistance

U.S. Pending Home Sales Probably Fell in March for Second Month

Bloomberg has latest story about US Pending Home Sales: U.S. Pending Home Sales Probably Fell in March for Second Month

Fewer Americans probably signed contracts to buy previously owned homes in March for the second consecutive month as falling prices and tougher loan rules discouraged buyers, economists said before a report today.

The index of pending home resales fell 1 percent after a 1.9 percent drop in February, according to the median forecast in a Bloomberg News survey of 30 economists.

The glut of unsold properties is driving down home values, while rising defaults on subprime mortgages have prompted lenders to restrict access to credit, representing more hurdles for buyers. The slump in residential real estate may persist for much of the year, hurting economic growth.

....

Recent reports indicate the worst housing slump in a quarter century is far from abating. Purchases of new homes plunged in March to the lowest level in almost 17 years, while the median price fell the most in almost four decades, according to the Commerce Department.

Sales of previously owned homes fell in March for the seventh time in eight months, according to the Realtors' group.

The pending resales index is considered a leading indicator because it tracks contract signings. The existing-home sales report reflects closings, which typically occur a month or two later.

....

Home values fell 7.7 percent in the first quarter to the lowest level in almost three years, according to Zillow.com, an online real estate data provider. Zillow also estimates that almost 52 percent of owners who bought homes in 2006 now owe more on their property than it is worth.

.....

Access to credit is also shrinking. The share of banks making it tougher for companies and consumers to borrow approached a record in the past three months, according to the Federal Reserve's quarterly survey of senior loan officers issued this week.

....

The fallout from the housing downturn is spreading. The world's biggest banks and securities firms cut a combined 65,000 jobs in the past 10 months as mortgage losses and writedowns for financial institutions reached $319 billion, according to Bloomberg calculations.

I believe we are still not out of the woods. The current rise in the stock market seems like a short term uptrend in the bear market. Such violent rallies are very common in the bear market. These are opportunities to lighten up on long positions and slow start entrying short positions.

Trade Tips For 6th May 08

All of the following are trading tips for 6th May 2008 only.

Short Entry

1. Big Lots, Inc. (BIG) through its wholly owned subsidiaries is a national broadline closeout retailer.
2. AmeriCredit Corp., (ACF) is an independent auto finance company.
3. Corinthian Colleges, Inc. (COCO) is a post-secondary education company in the United States and Canada, with more than 62,115 students enrolled.
4. YRC Worldwide Inc. (YRCW) is a holding company that through wholly owned operating subsidiaries offers its customers a range of transportation services.
5. Capital One Financial Corporation (COF) is a diversified banking company focused primarily on consumer and commercial lending and deposit origination.
6. Focus Media Holding Limited (FMCN) operates out-of-home advertising network in the People’s Republic of China using audiovisual television displays, based on the number of locations and number of flat-panel television displays in its network.
7. Lennar Corporation (LEN) is a homebuilder and a provider of financial services.

Long Entry

1. CF Industries Holdings, Inc, (CF) is a manufacturer and distributor of nitrogen and phosphate fertilizer products in North America.
2. VympelKom OAO (VIP) is a Russia-based provider of wireless telecommunications services in Russia, Kazakhstan, Ukraine, Tajikistan, Uzbekistan, Georgia and Armenia under the Beeline brand name.
3. Kinross Gold Corporation (KGC) is engaged in gold mining and related activities, including exploration and acquisition of gold-bearing properties, the extraction and processing of ore, and reclamation of mining properties.
4. Silver Wheaton Corp. (SLW) is a mining company with 100% of its revenue from the sale of silver.
5. MEMC Electronic Materials, Inc. (WFR) is engaged in the design, manufacture and sale of silicon wafers.
6. Evergreen Solar, Inc. (ESLR) develops, manufactures and markets solar power products enabled by its String Ribbon technology.
7. Domtar Corporation (UFS) is a manufacturer and marketer of uncoated freesheet paper in North America

Trade Results From 5th May 08

Trade Results From 5th May

Short Positions
Stock Price Yest Price % Change
BIG 27.78 28.31 -1.87%
ACF 14.29 14.49 -1.38%
AAPL 184.73 180.94 2.09%
LFC 67.75 68.29 -0.79%
COCO 11.34 11.36 -0.18%
YRCW 18.00 18.56 -3.02%
AUO 20.14 20.35 -1.03%
XLF 27.23 27.71 -1.73%
COF 55.40 55.23 0.31%
FMCN 39.66 38.48 3.07%

Long Positions
Stock Price Yest Price % Change
WFR 63.89 65.37 -2.26%
KGC 19.72 19.00 3.79%
ESLR 8.37 8.43 -0.71%
SLW 13.64 13.27 2.79%
UFS 5.92 5.92 0.00%

Trade Tips For 5th May 08

All of the following are trading tips for 5th May 2008 only.

Short Entry

1. Big Lots, Inc. (BIG) through its wholly owned subsidiaries is a national broadline closeout retailer.
2. AmeriCredit Corp., (ACF) is an independent auto finance company.
3. Apple Inc. (AAPL) designs, manufactures, and markets personal computers, portable digital music players, and mobile communication devices and sells a variety of related software, services, peripherals, and networking solutions.
4. China Life Insurance Company Limited (LFC) is an insurance company in the People's Republic of China.
5. Corinthian Colleges, Inc. (COCO) is a post-secondary education company in the United States and Canada, with more than 62,115 students enrolled.
6. YRC Worldwide Inc. (YRCW) is a holding company that through wholly owned operating subsidiaries offers its customers a range of transportation services.
7. AU Optronics Corp. (AUO) designs, develops, manufactures, assembles and markets flat panel displays.
8. Financial Select Sector SPDR Fund (XLF) seeks to provide investment results that correspond to the price and yield performance of the Financial Select Sector of the S&P 500 Index (the Index).
9. Capital One Financial Corporation (COF) is a diversified banking company focused primarily on consumer and commercial lending and deposit origination.
10. Focus Media Holding Limited (FMCN) operates out-of-home advertising network in the People’s Republic of China using audiovisual television displays, based on the number of locations and number of flat-panel television displays in its network.
    

Long Entry

1. MEMC Electronic Materials, Inc. (WFR) is engaged in the design, manufacture and sale of silicon wafers.
2. Kinross Gold Corporation (KGC) is engaged in gold mining and related activities, including exploration and acquisition of gold-bearing properties, the extraction and processing of ore, and reclamation of mining properties.
3. Evergreen Solar, Inc. (ESLR) develops, manufactures and markets solar power products enabled by its String Ribbon technology.
4. Silver Wheaton Corp. (SLW) is a mining company with 100% of its revenue from the sale of silver.
5. Domtar Corporation (UFS) is a manufacturer and marketer of uncoated freesheet paper in North America.

Disclosure: Short BIG, Long SLW