#$dft

[dragonflycap]

5 Trade Ideas for Tuesday: DuPont Fabros, Endo, Landstar, Stericycle and Unilever

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

DuPont Fabros, Ticker: $DFT

DuPont Fabros, $DFT, started higher form a low in February, reaching its top in August. It pulled back in a shallow retracement to the beyond its 200 day SMA from there, finding support at the April lows. Since mid-November it has been slowly turning higher and is back at resistance coming into the New Year. The RSI is in the bullish zone and the MACD is rising, both supporting more upside. Look for a push over resistance to participate to the upside….

Endo, Ticker: $ENDP

Endo, $ENDP, has fallen from a high over 96 in April 2015 finding a bottom a year later and over 85% lower. Since then it managed a small bounce to a high in August and then fell back. That pullback fond a higher low, a first bright spot for the stock, and has consolidated. The RSI is moving up and approaching the bullish zone while the MACD slowly trends higher. Look for continued upward price action to participate…..

Landstar, Ticker: $LSTR

Landstar, $LSTR, broke a long consolidation to the upside in October. It continued higher for 2 months, reaching a peak in early December. From there it has pulled back, and sits in consolidation over support. The RSI has held bullish over the mid line while the MACD has reset lower. A break over the consolidation range would be a signal to participate to the upside…..

Stericycle, Ticker: $SRCL

Stericycle, $SRCL, dropped precipitously in April and then retraced in a trend higher for 3 months before another drastic drop. The second kept going and eventually found a bottom in December. Since then it has made some progress, making its first new higher high. It sits consolidating as the year starts. The RSI is pushing towards the bullish zone while the MACD is rising. Look for a push over the 100 day SMA to participate in the upside…..

Unilever, Ticker: $UL

Unilever, $UL, moved higher off of a February 2016 low and started to find resistance in April. A pullback to a higher low reversed and found a new high in July. A smaller pullback reversed back to another higher high in September and then thing went south. A strong move lower in October cut 20% off the stock price, where it found a bottom in November. Since then it has bounced top resistance a few times and made higher lows. The RSI is rising and at the edge of the bullish zone while the MACD is bullish. Look for a move over resistance to participate to the upside…..

After reviewing over 1,000 charts, I have found some good setups for the week. hese were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which, with the calendar turning from 2016 to 2017 sees the equity markets retrenching in their uptrends.

Elsewhere look for Gold to continue its bounce in its downtrend while Crude Oil continues higher. The US Dollar Index looks to continue consolidation of the break out move while US Treasuries may have bottomed in their downtrend. The Shanghai Composite looks to continue to consolidate in the uptrend and Emerging Markets are consolidating the bounce in the downtrend.

Volatility looks to remain low but out of abnormally low levels keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts show short term pullbacks likely to continue within the long term uptrends. Use this information as you prepare for the coming week and trad’em well.

[dragonflycap]

5 Trade Ideas for Monday: Capital One, Discover, Express Scripts, DuPont Fabros and Edwards Lifesciences

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers

Capital One Financial, Ticker: $COF

Capital One Financial, $COF, fell from a high near 82.50 in November last year finding a bottom in late January almost 30% lower. Since then it has moved higher in a couple of steps to a lower high in April. The pullback to support saw a minor bounce and now a retest. With the MACD falling and the RSI dropping and near a move into the bearish zone, it is time to look to participate to the downside on a break lower.....

Discover Financial, Ticker: $DFS

Discover Financial, $DFS, fell through December and January, finally finding support in February 25% lower. It ran higher from there, culminating with a gap up in April back to the November high. Since then it has consolidated with the RSI pulling back from an overbought condition and now crossing the mid line, while the MACD falls. Look for continuation lower Monday to participate to the downside.....

DuPont Fabros Technology, Ticker: $DFT

DuPont Fabros Technology, $DFT, had a strong run higher out of consolidation and a retest at the 200 day SMA in January. It stalled in April and had a minor pullback before reversing back higher. The RSI is bullish and rising and the MACD is moving up. Look for a new high to enter long.....

Express Scripts, Ticker: $ESRX

Express Scripts, $ESRX, fell hard and fast in January, breaking below long term support. It bottomed and consolidated there through mid April before jumping back higher. It failed to close the gap in April and pulled back to support. Then it bounced to a lower high, before falling back to support. The RSI is breaking below the mid line and the MACD is crossed down and falling. Look for a break of support to short the stock.....

Edwards Lifesciences, Ticker: $EW

Edwards Lifesciences, $EW, was a Top 10 idea to the long side last week. The trigger to buy never came though and the stock fell back to support. Now it is pressing on that support with the Bollinger Bands® opening to the downside and the RSI and MACD falling. Look for a break of support to short the stock.....

After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which heading into May Options Expiration sees the equity markets continuing to look weak.

Elsewhere look for Gold to consolidate in its uptrend while Crude Oil continues higher. The US Dollar Index looks to continue the bounce in the downtrend while US Treasuries are biased higher. The Shanghai Composite and Emerging Markets look better to the downside.

Volatility looks to remain subdued though keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ, despite their moves lower. Their charts look better to the downside with the IWM the worst then the SPY and the QQQ with the best chance to consolidate and reverse. Use this information as you prepare for the coming week and trad’em well.

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[dragonflycap]

DuPont Fabros Technology - Turning data centers into cash flow

One of the popular financial engineering 'trades' has been to convert anything that uses real estate into a Real Estate Investment Trust (REIT).  One that caught my eye this weekend was DuPont Fabros Technology ($DFT).  This REIT is an aggregator, owner, manager and developer of large-scale data center facilities.  Think giant warehouses full of servers.

The stock of this company was beaten up early in the year but recovered into the fall.  In November it started another pullback but it has been very shallow so far.  In fact in the chart below it looks like a bull flag.  A break of that flag to the upside would target a move to near 39.  That is near its 52 week high at 38.20.  

Will it break out?  The momentum indicators are starting to turn back higher.  That is a plus.  And the 200 day SMA has acted as support through out this 2016 market pullback.  As long as that or the 100 day SMA below continue to hold, you get paid a 6.12% dividend to sit and wait.  Not bad sitting on your hands money.

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