Dear Friends,
Someone posted an interesting question to me last week. He said he has been reading my blog and am impressed with my trading records. He wondered if the trades I made were real because the blogs only show previous day’s trades and he suspected that I only write trades that were making money. So now you understand why I posted my previous week’s trading records last Saturday. Having seen my records, he sent me another email asking me why I should be teaching others. He suggested that I should manage money using my KUTE systems instead, and mentioned that he will be the first to invest with me if I do. Perhaps I should consider that. I have more than 15 students willing to listen to my seminar for my KUTE selection method from my last advertisement. I am really considering returning their cheques and cancel my seminar, and plan to offer my discretionary CFD trading to clients using my KUTE system. I may just gather the few who has already sent me cheques to share with them how I trade using KUTE over a cup of coffee to reward them for the faith they have in me. So if you are reading this blog and are willing to trust me to trade your account, do drop me an email. (smile)
So what’s ahead for the stocks this week after finishing last week higher? It will be interesting to see if USD will continue its Friday advancement. USD has rose higher after the positive employment report and the question is whether it will continue to strengthen for the rest of the year. If it continues to strengthen, commodity prices will decline and it can be tricky for the stock markets. The market will also be tested by weekly jobless claims, retail sales and international trade reports. For the technical, Cycle trend is indicating range trading and would probably end the week flat. With the candlestick weekly formation showing a white spinning top indicating indecision between bulls and bears, the strategy will again be buying at dip and sell at target limits.
The stocks selected by KUTE screener this week are; NOV, HP (Helmerich & Payne, not the HP computer we all know), ICUI, DOX and NE.
Helmerich & Payne, Inc. (HP) is engaged in contract drilling of oil and gas wells for others. The contract drilling business is composed of three business segments: U.S. land drilling, offshore drilling and international land drilling. The company’s operating income has declined but still remains positive. Cash flow from operation has increased and is positive for the last three years. However, I am not comfortable with the negative free cash flow for the last three years. With cycle trend indicating a flat range and candlestick showing black spinning top, I will stay out of this stock for this week.
Noble Corporation (NE) is an offshore drilling contractor for the oil and gas industry. The Company performs contract drilling services with its fleet of 63 mobile offshore drilling units located worldwide. I like the company’s operating income, the operating and free cash flows, which are positive and increasing for the last 3 years. The Cycle Trend indication shows no immediate downside risk and the candlestick formation for the week is bearish. However there was a homing pigeon formation prior to last week’s bearish candle, there is a possibility that the stock will advance this week. With daily candle formation indication a new homing pigeon, this will be the stock I will consider to buy and sell immediately once the target is achieved.
ICU Medical, Inc (ICUI) is engaged in the development, manufacture and sale of disposable medical connection systems for use in vascular therapy applications. The Company’s devices are designed to protect patients from catheter-related bloodstream infections and healthcare workers from exposure to infectious diseases through accidental needle sticks. It is also engaged in the production of custom intravenous (I.V.) systems, critical care medical devices, including catheters, angiography kits and cardiac monitoring systems. This is one of the stocks that are recommended by many analysts. The company’s operating income is consistently positive and both the operating and free cash flows are good. For the technical, the daily cycle trend chart is indicating a strong uptrend. However the weekly chart is indicating downside potential. The candlestick formations for both daily and weekly indicate a good chance for upside gain. This will be the stock that I will also be monitoring to buy.
Amdocs (DOX) is the market leader in customer experience systems innovation, enabling world-leading service providers to deliver an integrated, innovative and intentional customer experience(TM) at every point of service. Amdocs provides solutions that deliver customer experience excellence, combining the software, services and expertise to help its customers execute their strategies and achieve service, operational and financial excellence. A global company with revenue of $2.86 billion in fiscal 2009, Amdocs has approximately 17,000 employees and serves customers in more than 60 countries around the world. I like the company’s operating income and cash flows. They are consistent and positive for the last 3 years. As for the technical, cycle trend is bullish and the weekly candlestick formation is a white Marubozu. However its daily candle is a bearish candlestick, so it will be good to wait for the stock to decline before buying.
So my decisions for the week are: Wait for confirmation to buy NE; buy ICUI and; wait for DOX to dip to buy.
As for NOV, both the cycle trend and candlestick weekly formation are bullish and with the 2 positions I am holding, I am expecting to enjoy more profits for the week.
Have a great trading week!
Francies Cheng
BBus MAppliedFinance
No comments:
Post a Comment