Stock Picks

Continuing to Watch Neurocrine Biosciences Inc NBIX for a Breakout

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I continue to watch NBIX like a hawk because it has what I consider to be both long term, intermediate term, and short term favorable technical analysis characteristics. I did a short write up on Neurocrine Biosciences Inc before and this is the second follow up. The ‘moment of truth’ for any stock, bond, index, … Read more

China Stock SPU Sky People Fruit Juice Appears ready to reach for the Sky

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SPU Sky People Fruit Juice appears to be in breakout mode at the moment or at least very close to it.  The stock has consolidated in a beautiful double bottom formation where the second bottom never managed to touch the first price bottom, a bullish sign. SPU trades quite thin as there are very few … Read more

AXL American Axle & Manufacturing Holdings Poised for Breakout

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AXL has a very nice large pattern in the form of an inverse head and shoulders bottom.  This is a high reliability pattern and it is occurring over a time frame of 1.5 years which makes its breakout implications very significant. The right shoulder portion of the pattern has a saucer or scalloping type formation … Read more

Direxion Daily Financial Bear 3X Shares Look Very Good To Me

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FAZ20091218

The FAZ Triple Inverse Financial Bear ETF looks extremely attractive to me right now based on everything I am seeing in the market.  The UNG performed as expected and is now getting to be a tired trade already and I suspect it will pull back some before building higher down the road.

But now the FAZ has flashed all sorts of buy setups and looks very good to me going into next week and end of year and early January.  I think we could see FAZ blast higher into the high 20’s range during the next 1 month time frame.

As I indicated in a previous post, the WEEKLY MACD has now turned down on the SPY and the SP500 index.  That means that the market will have weekly bearish headwinds going into next week.

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YGE Yingli Green Energy Solar Power and China Power ?

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Well Thanksgiving is over, the world is still turning and China is an economic powerhouse that needs lots of energy and food to keep its people and growing economy happy.  Can you imagine how many turkey’s they would need in China to feed every family there?  Hmmm lets see, the population of China is around 1.325 BILLION people.  So let’s say 1 turkey for every 3 people… so that would be four hundred and forty one million, six hundred and sixty six thousand, six hundred sixty six freaking turkeys!!! (441,666,666). 

Clearly China is the 100lb gorilla taking the world by storm.  I mean just look at the run that Baidu (BIDU) stock had, what an unbelievably huge run.  Chinese stocks can be huge runners and huge winners for the simple fact that there is such large untapped market potential for all sorts of products, everything from fertilizer to solar panels.

YGE is looking damn good right now as a potential setup.  YGE does solar panels in China.  Solar stocks from my experience seem to be somewhat of a bumpy and unpredictable ride sometimes.  They can have some occasional really good periods of outperformance and then just go into hiding for ages.  Part of that could be due to the ever changing oil price as perhaps a rising or spiking oil price can make solar seem more cost competitive.  And incidentally from what I have seen in the oil charts I would not be surprised to see another trend higher in the oil price soon as we have recently seen the dollar break down into a new free fall mode.  That should support higher oil prices for a while.

Anyway, regardless of the funny mentals, the chart of YGE seems to be saying that YGE could be preparing for a big sustained run perhaps into the 20 range or higher.

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