Monday, 2 December 2013

Stocks to Buy Today

I had listed three stocks to follow out yesterday : ZOOM, ADAT and ICLDW

ZOOM reported third quarter losses yesterday morning, and therefore it was better to stay away from this stock. However, if you have invested in this stock, I would suggest a Sell.

Since the overall US market was weak yesterday, both ADAT and ICLDW fell as well.

So here is my Rule No. #1 : always follow News, and if the overall market is falling wait before you invest in any stock. It is sometimes good to wait and watch the market before you make your move, and yesterday was just one of those days.

Festive seasons like Christmas means more investing by consumers on Groceries and travel, and Retail in general. It is therefore the Retail sector that steals the show during this period. Dec and Jan are therefore a good time to watch Retail stocks. Also, noteworthy is the point that since Retailers sell more in this period, they will post better earnings report in the first quarter of the year.

Since all other sectors have little momentum during the holiday season, it is my favourite Oil & Gas sector that investors turn their attention to during this season. Hence the other sector that needs to be followed closely now is the Energy and Oil and Gas sector.

Some of the stocks worth watching in the Retail sector are :

Cabella(CAB) : has been recently upgraded to a BUY, and will probably see some upward movement today, a good one to invest if you are planning to make a quick buck. Make sure to get out of it within the week.

American Eagle Outfitters (AEO) : the earnings report is due 6th Dec, however the projected growth estimates for this stock are stagnant for the next few months, and hence I would not be interested. It is probably a good BUY in the long run if you are interested to invest now and wait for a year, to see if the stock goes up. However you will most probably get a better BUY somewhere near its next earnings report, so I would suggest to wait for the time being.

Now moving to the Oil & Gas sector :

MPC: everything is in favour including the recent upgrade to a BUY. Looks like a good BUY at this point.

OK, so we do consider earnings report and recent Upgrades and Downgrades in determining which stocks to invest in. How earnings and upgrades/downgrades can affect the movement of a stocks price, and how technical analysis can help us to determine at what point this movement will happen, I will try to cover in my next post.

Till then, Happy Learning and Happy Market Watching!

Sunday, 1 December 2013

Stocks to buy Today : roadway to developing your own trading strategies

We have discussed Candlesticks and certain simple strategies in my previous posts. I am now going to discuss some of my trading strategies using examples, that help identify the stocks that I watch for the day. Once I have established the rules for identifying the stocks that I watch, I will explain further on the simple strategies that I use for the same. Below are a list of stocks that I will be looking at today and I will later follow up with another brief later to explain the strategies used. So here is the list :

ZOOM : has risen quite a bit in the premarket hours, and has positive news over the last few days. The stock will be a good buy at the previous close price, however it should be considered a short term investment of a day or two, and my advice would be to lock in the profits within the week. The mean and median target prices are 8, so I would ideally sell it before it reaches 8, at around 7.8. So for an investment of let's say $3000 I could make around $600 if I am lucky! Lets see.

ICLDW : need to keep a watch, as it has already reached it's high in last two weeks of November. A second peak could be possible.

ADAT: is a buy as well, it has recently reported profits and is a very cheap stock. However, the target currently is $2, which means that it has a significant upper curve in the next few days.

Now that we have listed a few stocks that we have sorted out to watch for the day. we will revisit them, after the market opens, and follow up with strategies used to oversee these stocks.