It will be a shorter week for trading this week as the market will be closed on Thursday for Thanksgiving. Since I have not taken a nice break off my work, I intend to either close off all my position on Wednesday or to place limits and take a break on Friday to enjoy a longer weekend. DJIA ended up 0.5% for last week and S&P 500 ended modestly down at 2 points and Nasdaq was down 1% for the week. The declines were modest and it will be interesting to see how this week will be. We will have the National Association of Realtors report for existing home sales on Monday, the S&P/Case-Shiller Index for September on Tuesday which tracks sale prices of existing homes in 20 major markets and the new home sales from the Commerce Department on Wednesday. These 3 reports and the direction of USD the next 3 days can decide whether I can enjoy my long weekend break. Let see how US markets will be for the coming week.
From the Cycle Trend chart, DJIA will be trading side way and the candle formation of a white spinning top seems to confirm the chart. Since it will be a short week, my strategy will continue to buy at dip and sell at target. These are the stocks that meet KUTE’s fundamental requirements; NOV, MGLN, ABM, CSH and APOG. Since I have covered NOV and MGLN, I will only analysis the financials of ABM, CSH and APOG. ABM Industries Incorporated (ABM) is a facility services contractor in the United States. ABM and its subsidiaries provide janitorial, parking, security and engineering services for commercial, industrial, institutional and retail facilities in 100 of cities throughout the United States. The company is fundamentally sound and most analysts have given this stock a neutral to moderate buy recommendations and its operating profits and both the operating and free cash flow are consistently positive for the last few years. However the cycle trend is showing a decline for the week and its candlestick formation of bearish engulfing is telling me to stay away from this stock.
Cash America International, Inc. (CSH) provides pawn loans, short-term cash advances, check cashing services and other specialty financial services to individuals. The Company also sells merchandise in its pawnshops, primarily personal property that has been forfeited in connection with its pawn lending operations. As of December 31, 2008, the Company operated 501 pawnshops in 22 states throughout US. A confluence of trends looks ready to push pawn lenders higher. The declining availability of credit should spur more demand for pawn loans, and rising gold prices should make those loans more profitable. With banks offering consumers less credit, in a pinch more people will be forced to turn to non-banks, such as pawn lenders. Though the company’s financials are consistent and positive, cycle trend is showing a decline and the candle formation of a black candlestick indicates a wait signal.
Apogee Enterprises, Inc. (Apogee Enterprises), through its subsidiaries, is engaged in the design and development of value-added glass products, services and systems. I like the company’s financials and it is fundamentally strong. The cycle trend is showing upside advance but the candle stick formation is a spinning top representing indecision between the bulls and the bears. I will wait for the confirmation of the daily signals before I buy into this company.
As for NOV, the candlestick is telling me to wait but the cycle trend is showing a moderately strong upside advance. MGLN cycle trend upside advance forecast is strong and its candle formation for the week is to hold and wait for the confirmation of a new signal.
Since I am still holding NOV and I am at the limits of my 30-20-50 money management rule, I can only focus on the NOV stock. If I can sell all the positions of this stock I will look into both APOG and MGLN.
Enjoy trading for the week.
Francies Cheng
BBus MAppliedFinance
BBus MAppliedFinance
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