It’s another new week and another week of challenges to achieve my trading goals. So what are the stocks I will be trading this week? First let’s take a look at my Cycle Trend forecast for the US market.
As you can see from the chart, it seems that US will continue to trade within broad range with possibility of a decline. The 2 doji formed suggest that we should wait for a clearer confirmation before I change my tactical plan to buy on dip and sell on target. If it forms another doji, it will be the worry tri-star formation and US may start correcting. Since I can see it is trading near the resistant of its Bollinger band, and with the cycle and candle signals, I will not buy any share and hold for the next 1 month. With nearly 3,000 companies publishing their earnings this coming week, economic report of the GDP on Thursday, commerce department new home sales on Wednesday, conference board’s consumer mood (confidence) on Tuesday, it’s going to be an exciting time to make money using the KUTE system. By the way, I will only trade those stocks that are defined by KUTE which includes the stocks’ technical. So if a stock does not qualifies, I will not trade since the price may continue its’ decline over the week and if I buy at dip I may get into trouble. Better be safe and keep my money for stocks with better signals.
The stocks filtered for the week are: PTEN, DRIV, MLI, CAH, WTS, EIX, OSG and BHI. Changes from last week are the inclusion of MLI (Mueller Industries Inc) and BHI. Excluded from the list is GCO.
Since I have covered the fundamentals of the repeated stocks at the beginning of the month, I will only discuss the fundamentals of MLI and study the technical of the other stocks.
I again have to make a choice between PTEN and BHI since both are within my radar for good fundamentals. However when I compare the companies’ technical, both Cycle Trend and Candle appears to favor PTEN.
I have mentioned in my last blog that I was not comfortable with DRIV’s earnings and cash flows although both are positive. Since I have other stocks that have better signals, I will not trade this stock this week. Anyway, looking at both the Cycle Trend and candles, it seems that the stock will reverse and decline this coming week. OSG candle indicates a decline and there isn’t any buy signal from Cycle Trend so I am giving the stock a miss. EIX has no strong buying signals. While Cycle Trend indicated no buy signal, the stock’s candle seems to point to a decline. As for CAH, I am expecting to see a decline in the beginning of the week but the stock should close the week up. I will be looking at opportunity to trade this stock. The charting for WTS doesn’t look too good for me so I am also giving it a miss. In summary I will only be trading PTEN and CAH.
How about MLI? Mueller Industries, Inc. is a company that manufactures copper, brass, plastic, and aluminum products. It operates in two segments, Plumbing and Refrigeration, and Original Equipment Manufacturers. The company’s operating earnings has declined for the last 3 years, and its’ net income applicable to common shares also declined over the years. I do notice that its operating cash flow remains consistent while its earning is declining, and this is very uncomfortable for me.
The Cycle Trend show the stock moving sideways while its candle indicates a potential decline. Not very exciting for this stock, so I am also giving it a miss.
Have a great week ahead!
Francies Cheng
BBus MAppliedFinance
BBus MAppliedFinance
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