New KUTE selection for week beginning 14th Dec

Good morning,

It’s another new week to look forward to and we are drawing near to Christmas. Christmas is the time to celebrate and it would be nice if we can make enough profits from our stock trading to enjoy the blessed occasion. So what will the week be for us to trade and make some money?

This week will be interesting. Stocks finished mostly higher last week because investors sounded more confident about the recovery. This week will tell us if they're right. We will have important earnings reports to indicate how well the economy has recovered. The Fed Open Committee will also be meeting and I do not expect them to raise interest rate, but it will be interesting to hear if they are optimistic with the recovery. I am also expecting the industrial production and housing starts reports to show improvement. There will also the CPI and PPI reports from the Labor Department and the initial jobs claim this coming week. With the Cycle Trend charting indicating range trading with downside possibility and the candlestick white spinning top formation for the week representing indecision between bulls and bears, I am expecting the market to be trading within the same broad range as last week. With this in mind, my strategic plan is to continue my buy at lower than Friday’s close and sell at targets.

The stocks selected by KUTE for the week are DOX, NOV, NE, FCN and TDW. FTI Consulting, Inc. (FCN) is a global business advisory firm. The Company assists its customers in addressing a range of business challenges, such as bankruptcy, restructuring, credit issues and indebtedness, mergers and acquisitions, interim business management, electronic discovery, management and retrieval of electronically stored information, reputation management, and strategic communications. The Company had operations across 37 United States cities and 22 foreign countries, which includes Argentina, Australia, Bahrain, Belgium, Brazil, the British Virgin Islands, Canada, China (including Hong Kong), Colombia, France, Germany, India, Ireland, Japan, Mexico, Panama, Russia, Singapore, South Africa, Spain, United Arab Emirates and the United Kingdom. The company’s operating income, operating and free cash flows are consistent and positive for the last 3 years. The Cycle Trend chart shows an upside potential and the candlestick formation of white spinning top is to hold. With the daily candlestick formation of bearish deliberation for a possible trend reversal, I will wait keep this stock in review and not buy.

Tidewater Inc (TDW) provides offshore supply vessels and marine support services to the offshore energy industry through the operation of offshore marine service vessels. The company’s operating income has been steadily increasing for the last three years. The operating and free cash flows are positive and constant over the same period. The weekly cycle trend chart is indicating a bullish uptrend, but the candle stick formation is a black spinning, indicating indecision between the bulls and the bears. With the daily candle posting a wait signal, I will wait for next period candle confirmation or for the stock to dip to buy.

As for NOV, DOX and NE, these stocks were covered in the previous recommendations so I will only look at the technical for entering decisions. NOV weekly Cycle trend and Candlestick formation are bullish; however the daily candlestick is indicating a hold. I will wait for the price to dip below last Friday’s close to buy and add on to my sole position. DOX cycle trend chart indicates a sideway range and its candlestick formation is to wait. I will not add on to the position I am currently holding. As for NE, the weekly cycle trend chart is range trading with upside potential and the weekly candle is positive. However the daily candle is to hold and wait so I will wait for buy signal or for the stock to dip to buy.

So the decisions for the week are add on to NOV if the price dip lower than last Friday’s close, do nothing with DOX, and wait for “buy” signals for NE, TDW and keep FCN in review.

Have a great week ahead!

Francies Cheng
BBus MAppliedFinance