Todays Big Stock: BlackRock Kelso Capital (BKCC)

BlackRock Kelso Capital Corporation is an externally managed, non-diversified closed-end management investment company. The company’s investment objective is to generate both current income and capital appreciation through its debt and equity investments. It invests primarily in middle-market companies and target investments throughout the capital structure. The term middle-market refers to companies with annual revenues typically between $50 million and $1 billion. Its targeted investment typically ranges between $10 million and $50 million. The company seeks to invest in companies that operate in a variety of industries and that generate positive cash flows. It provides middle-market companies with flexible financing solutions, including senior and junior secured, unsecured and subordinated debt securities and loans, and equity securities. 

Before discussing the potential trading opportunities with BKCC (BlackRock Kelso Capital Corporation), please review the 1 yr. chart of BKCC that I have outlined below, with my added notations:

Over the last 4 months, BKCC has created (2) very important price levels in which to trade off of: First, the $9 resistance (navy), which was also previous support (blue). Second, the $8 level has been both support (green) and resistance (red) several times since August. BKCC is currently trading in between those (2) levels.

The Tale of the Tape: BKCC is trading between (2) important price levels at $9 and $8. A rise to the $9 resistance would be a great opportunity to enter a short trade, while a break above that $9 could be a nice long trade. A trader could also enter a long trade on a pull back down to the $8 support, or a short trade on a break below the $8.

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: Buckle, Inc. (NYSE: BKE)

The Buckle, Inc. is a retailer of casual apparel, footwear, and accessories for men and women. The Buckle operates approximately 400 retail stores in 41 states throughout the continental United States under the names Buckle and The Buckle. The company markets a selection of casual apparel including denims, other casual bottoms, tops, sportswear, outerwear, accessories, and footwear. The company offers denims from brands such as Big Star, Big Star Vintage, Miss Me, MEK, Rock Revival, Silver Jeans and Buffalo Jeans. Other brands include Hurley, Billabong, Affliction, Sinful, Archaic, Obey, Roar, RVCA, Fox, and Fossil. The Buckle, Inc. purchases products from manufacturers within the United States, as well as from agents who source goods from foreign manufacturers.

Before discussing potential trading opportunities, please take a look at the 2-year chart of BKE (The Buckle, Inc.) below with my added notations:

Since I have followed BKE for quite a while, I knew of important prices that were not only important now, but also went back more than a year. I chose the 2 yr chart so that you could see the long-term importance of (2) specific prices on BKE. First, please notice the $40 level (blue-resistance/red-support). Underneath the $40, you will notice that BKE has a long-term support at $35 (green).

The Tale of the Tape: BKE has an important level at $40, which is where the stock is currently sitting. A long play could be made at this $40 level, or a short trade if the stock were to break that level. If a trader takes a small loss on a long play at $40, the next long play could be made on a drop to the $35 level. A break below the $35 could mean a significant drop for BKE and another short should be made.

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: Sify Technologies Limited (NasdaqGM: SIFY)

As I stated in the ACTG article I wrote, trading in the stock market can at times be complicated, confusing and challenging to know what trade to make and when to make it. However, there are those trading opportunities like ACTG that are clear and somewhat obvious. Keep in mind that clear, obvious or not, that doesn’t necessarily mean the trade will always work out in your favor. Another stock that appears to have a “simple” trading opportunity would be that of Sify Technologies Limited.

Sify Technologies Limited (Sify) is an integrated Internet, network and electronic commerce services companies in India, offering end-to-end solutions with a range of services delivered over a common Internet backbone infrastructure. Sify’s services enable its business and consumer customers to communicate, transmit and share information, access online content and conduct business remotely using its private data network or the Internet. Sify’s segments comprised: corporate network/data services, which provides Internet, connectivity, security and consulting, hosting and managed service solutions; Internet access services, from homes and through cybercafes, online portal services and content offerings, and other services, such as development of e-learning software.

Before discussing potential trading opportunities, please take a look at the 1-year chart of SIFY (Sify Technologies Limited) below with my added notations:

Although I don’t normally look at stocks below $10, I know a lot of traders do. Well, isn’t the trade on SIFY relatively obvious? SIFY had been holding a very important level of support at $4 for several months. After breaking lower, the stock rallied back above that $4 level at the end of October. Now that SIFY is back above $4, traders would expect that level to start acting as support again if the stock were to ever come back down to it.

The Tale of the Tape: SIFY has a very important support level at $4. If the stock were to approach that level again, a trader could enter a long position with a stop under that level. However, if SIFY were to break that support, a short position could be entered with the expectation of a fall down to the $3 area.

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: Complete Production Services, Inc. (CPX)

As the market has rallied from the beginning October, some stocks have managed to get back up to their respective August breakdown points, or even higher. Those previous breakdown levels will usually provide strong resistance when approached and strong support if stocks get back above them. One stock that has hit a couple of breakdown levels, and even broke above one of them, would be that of Complete Production Services, Inc.

Complete Production Services (CPS) provides specialized completion and production services and products that help oil and gas companies to develop hydrocarbon reserves and enhance production. The company operates in basins within North America, and manages its operations from regional field service facilities. CPS operates through three business segments. Through its completion and production services segment, the company establishes, maintains and enhances the flow of oil and gas throughout the life of a well. Through its drilling services segment, it contract drilling and specialized rig relocation and logistics services. Through its product sales segment, the company provides oilfield service equipment and refurbishment of used equipment through its Southeast Asian business, and provides repair work and fabrication services for its customers at a location in Gainesville, Texas.

Before discussing potential trading opportunities, please take a look at the 1-year chart of CPX (Complete Production Services, Inc.) below with my added notations:

As you can see from the chart above, CPX has a very common price level at $30 (navy). The stock also has a frequent level at $35 (red & green). Both of these levels broke in August and the stock moved lower as one would expect. Since bottoming in October, CPX has rallied to break back above the $30, but now the stock has been sitting under the $35 level for a couple of weeks.

The Tale of the Tape: CPX has broken back above its $30 level and now sits under the $35 level. A long trade could be made on a break above $35 or on a pullback down to $30. Short traders could enter a trade at $35 or on a break back below $30. Stops should be placed under the level of entry on longs or above the level of entry on shorts.

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: Acacia Research Corporation (NasdaqGS: ACTG)

Trading in the stock market can at times be complicated and confusing. It can be challenging to know what trade to make and when to make it. However, there are those trading opportunities that are clear and somewhat obvious. Usually, the “keep it simple stupid” trades tend to be the best anyway. Keep in mind that regardless of simple or not, that doesn’t necessarily mean the trade will always work out in your favor. One stock that appears to have a “simple” trading opportunity would be that of Acacia Research Corporation.

Acacia Research Corporation through its operating subsidiaries, acquires, develops, licenses and enforces patented technologies. The Company’s operating subsidiaries generate revenues and related cash flows from the granting of rights for the use of patented technologies, which its operating subsidiaries own or control. Its operating subsidiaries assist patent owners with the prosecution and development of their patent portfolios, the protection of their patented inventions from unauthorized use, the generation of licensing revenue from users of their patented technologies and, if necessary, with the enforcement against unauthorized users of their patented technologies.

Before discussing potential trading opportunities, please take a look at the 1-year chart of ACTG (Acacia Research Corporation) below with my added notations:

It’s relatively obvious, isn’t it? ACTG has been holding a very important level of support in the area of $32.50 (green) for the last 9 months. No matter what the market has or has not done this year, ACTG has not broken below that general area of support.  If the market should move lower, ACTG will most likely retest its support level for a potential trade.

The Tale of the Tape: ACTG has held a very important support level at $32.50 since March. If the stock were to approach that level again, a trader could enter a long position with a stop under that level. If ACTG were to break that support, a short position could be made with the expectation of a fall down to the $30 level (red) where another long trade could be placed.

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