Todays Big Stock: Itron, Inc. (NasdaqGS: ITRI)

Itron, Inc. is a technology company, offering end-to-end smart metering solutions to electric, natural gas, and water utilities around the world. Itron’s metering solutions, meter data management software, and knowledge application solutions bring additional value to a utility’s metering and grid systems. Its professional services help its customers project-manage, install, implement, operate, and maintain their systems. The company classifies metering systems into three categories: standard metering, advanced metering systems and technology, and smart metering systems and technology.

Before discussing the potential trading opportunities with ITRI (Itron, Inc.), please review the 1 yr. chart of ITRI that I have outlined below, with my added notations:

Like a lot of stocks, ITRI has had a rough go of it over the last year. Over the last 3 months though, the stock has created (2) very important price levels in which to trade off of: First, the $40 resistance (red). Second, the $35 level has been very common. The $35 has been both support (navy) and resistance (blue) since August. ITRI is currently trading in between those (2) levels.

The Tale of the Tape: ITRI is trading between (2) important price levels at $35 and $40. A rise to the $40 resistance would be a great opportunity to enter a short trade, while a break above that $40 could be a nice long trade. A trader could also enter a long trade on a pull back down to the $35 support, or a short trade on a break below the $35.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade.  Capital preservation is always key!

Good luck!
Christian Tharp, CMT

Todays Big Stock: Walter Energy, Inc. Common Stoc (NYSE: WLT)

As a trader, remember to always select stocks that move well. Making money in the market is all about small losses, big winners. You can be wrong an awful lot as long as when you’re right, the winners are big. One stock in particular that moves well enough to give you the great gains when you’re right is that of Walter Energy, Inc.

Walter Energy, Inc. is a producer and exporter of metallurgical coal for the global steel industry and also produces steam coal, coal bed methane gas, metallurgical coke and other related products. Walter Energy operates in three business segments: Underground Mining, Surface Mining and Walter Coke. It operates two underground metallurgical coal mines in Southern Appalachia’s Blue Creek coal seam, the No. 7 Mine and the No. 4 Mine, both operated by Underground Mining, one metallurgical coal mine operated by Surface Mining, Taft’s Reid School Mine, and three steam and industrial coal mines operated by Surface Mining, Tuscaloosa Resources, Inc.’s East Brookwood and Highway 59 Mines and Taft’s Choctaw Mine.

Before discussing potential trading opportunities, please take a look at the 1-year chart of WLT (Walter Energy, Inc.) below with my added notations:

 

WLT has a common price level at $70. You can see that each time WLT has bounced on $70 level the stock has went on runs of $15, $15, $10 and now $5. When the stock fell below $70 in September, then rallied back up to hit it as resistance a few days later, you will notice the $15 run down to $55. The point being, when playing WLT of the $70, the stock can go on some very profitable runs.

The Tale of the Tape: WLT is a stock that moves very well, thus providing great risk/reward trading opportunities. A long trade could be entered at $70 with a stop below that level. If the stock were to break back below $70, a short trade could be made with a stop above the level.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade.  Capital preservation is always key!

Good luck!
Christian Tharp, CMT

Todays Big Stock: Vmware, Inc. (NYSE: VMW)

VMware, Inc. is a provider of virtualization solutions from the desktop to the data center. The Company’s suite of virtualization solutions addresses a range of complex information technology (IT) problems, that include cost and operational inefficiencies, facilitating access to cloud computing capacity, business continuity, software lifecycle management, and corporate computing device management. It works closely with more than 1,700 technology partners, including server, microprocessor, storage, networking and software vendors. Its solutions are based upon its core virtualization technology and are organized into four main product groups: Cloud Infrastructure, Cloud Application Platform, End-User Computing, and Virtualization and Cloud Management.

VMware’s stock is currently trading in the $100 area, so it is obviously a stock on the high end of the price range that I usually like my stocks to be in. However, for the benefit of those traders who like the pricier stocks, I thought I’d analyze it anyway. To review VMware’s stock, please take a look at the 1-year chart of VMW (VMware, Inc. Common Stock) below with my added notations:

I see (3) important price levels on VMW that would interest me: The $100 level (reds), the $95 level (greens), and the $90 level (blues).  The stock has recently bounced on the $95 support and is currently sitting at the $100 resistance. Those are the (2) levels I’d be paying attention to at this time. However, if the stock were to break below the $95 level, the $90 level would come back into play for a trade.

The Tale of the Tape: As seen on the chart, VMW has created price levels at $90, $95 and $100. A long trade could be made on a pullback to $95 or a break above $100. In either case, a stop should be placed under the entry level.  If you are looking for short trades, positions could be entered at $100 or on a break below $95.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade.  Capital preservation is always key!

Good luck!
Christian Tharp, CMT

Todays Big Stock: Polaris Industries Inc. Common (NYSE: PII)

In several of the articles I have written over the last several months I have discussed potential 52-week high breakout opportunities. With those opportunities, I always like to review stocks that would be breaking key resistance levels in the process of hitting their new high. Earlier this week, I looked at a stock that had already broken to a new 52-week high, Family Dollar Stores, Inc. Today, I will review another such example: Polaris Industries, Inc.

Polaris Industries Inc. designs, engineers and manufactures off-road vehicles, including all-terrain vehicles and side-by-side vehicles for recreational and utility use, snowmobiles, and on-road vehicles, including motorcycles and low emission vehicles, together with the related replacement parts, garments and accessories. These products are sold through dealers and distributors principally located in the United States, Canada and Europe.

To review Polaris Industries’ stock for potential trading opportunities, please take a look at the 1-year chart of PII (Polaris Industries, Inc.) below with my added notations:

For the last 4 months, PII had a resistance level at $60 (navy). This resistance level was a 52-week high breakout when the stock shot higher last week. This breakout should be a sign that the stock is moving overall higher. However, that certainly doesn’t mean that the stock can’t pull back first, which it has actually already done. The old $60 resistance is currently providing support for PII, as it should. On a very short-term basis, the next area of resistance appears to be taking shape around the $65 level (l. blue).

The Tale of the Tape: PII broke out to a new 52-week high last week and has now pulled back to that level as support. A long trade could be made at $60, or on a break above $65, with a stop placed below the level of entry. A break below $60 would negate the forecast for PII’s move higher.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade.  Capital preservation is always key!

Good luck!
Christian Tharp, CMT

Today’s Big Stock: BE Aerospace, Inc. (NASDAQ: BEAV)

The market finally pulled back a bit over the last two days. Although I am personally not bullish on the markets, I know a lot of traders that are.  So, if you are one of those traders who is looking to go long, the pullback in the market can be a great time to look to enter stocks pulling back to key levels. One stock in particular that pulled back to a key level yesterday is that of BE Aerospace, Inc.

BE Aerospace, Inc. is a manufacturer of cabin interior products for commercial aircraft and business jets and distributor of aerospace fasteners and consumables. BE sells its products directly to the entire world’s major airlines and aerospace manufacturers. It also designs, engineers and manufactures customized fully integrated thermal and power management solutions for participants in the defense industry, aerospace original equipment manufacturers and the airlines. In addition, it provides aircraft cabin interior reconfiguration, program management and certification services. It operates three segments: Consumables Management Segment, Commercial Aircraft Segment and Business Jet Segment.

Before discussing potential trading opportunities, please take a look at the 1-year chart of BEAV (BE Aerospace, Inc.) below with my added notations:

BEAV has an important, long-term price level at $36 (green/red) and another lower level down at $30 (blue). After breaking below the $36 level in August, BEAV rallied back up and hit that $36 level as resistance on a couple different occasions. Last week, the stock broke back above the $36 level. Now, the market pullback has brought BEAV back down to the $36 for a potential trade.

The Tale of the Tape: Now that BEAV is back above $36, that level should act as support on any pullbacks. A long trade at $36 could be made with an expectation of a run to $40-42. A break below $36 would negate the forecast for a move higher and a short position could be entered with an expectation of a fall back down to the $30 level.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade.  Capital preservation is always key!

Good luck!
Christian Tharp, CMT