Weekly Market Recap -- 12/3

As weeks go this wasn't a bad one.  It's the weekend and time to pull out our 3 market momentum yardsticks.  We get all our data on Barchart and use 3 because each one measures momentum in a slightly different way.  Let's cut out the hype and analyze what happened.

Value Line Index -- Contains 1700 stocks so it's much broader than the narrow S&P 500 or very narrow Dow 30 -- All signs seem positive

• Barchart 100% technical buy signal
• Up 3.26% for the week
• Up 4.97% in the last month
• Closed Friday at 2767.09 which is 5.85% above its 50 day moving average of 2614.04
• Relative Strength Index is 67.06% and rising

Barchart Market Momentum -- Contains approximately 6000 stocks -- Percentage of stocks closing above their Daily Moving Averages for various time periods -- Above 50% is always good

• Friday 66.00% closed above their 20 DMA, 67.10% closed above their 50 DMA, 77.38% closed above their 100 DMA
• Last Week only 46.00% closed above their 20 DMA, 59.61% closed above their 50 DMA, 75.30% closed above their 100 DMA
• Last Month 77.90% closed above their 20 DMA, 84.16% closed above their 50 DMA, 86.82% closed above their 100 DMA

Ratio of stocks hitting new highs/new lows for various time frames -- 1.0+ bullish, 1.0 neutral, below .99 bearish -- This week looked great

• 1 month new highs/new lows -- 1016/232 = 4.38
• 3 month new highs/new lows -- 812/80 = 10.15
• 6 month new highs/new lows -- 678/47 = 14.43

 Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.




Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.

United Technologies is positions for growth

You many not believe this but we are beginning to come out of the recession and we should be looking for companies that are poised for growth.  Companies that have a world wide foot print and already are established in China and India should benefit first.  United Technologies (UTX) is just such a company.

United Technologies Corporation provides a broad range of high technology products and services to the building systems and aerospace industries. Those products include Pratt & Whitney aircraft engines, space propulsion systems and industrial gas turbines; Carrier heating, air conditioning and refrigeration; Otis elevator, escalator and people movers; Hamilton Sundstrand aerospace and industrial products; Sikorsky helicopters and International Fuel Cells power systems.

China's economy is already flying and they are buying UTX products.  Elevators from Otis, jet engines from Pratt & Whitney, helicopters from Sikorsky and refrigeration units from Carrier.  This new orders are replacing the weakness UTX has experienced in the US and European markets.

The stock is enjoying recent price momentum that has earned it a 100% Barchart technical buy signal.  The stock trades at 78.43 which is above its 50 day moving average of 74.09.  In the last month the 50 day moving average has gained 12.95% while the stock has gained 5.06%.  That shows a strong support level.  The Relative Strength Index is 66.26% and rising.

Wall Street brokerage analysts consider this stock a core holding and have published 16 buy and 6 hold reports for their financial advisors to push.  Although sales are only expected to increase 2.60% this year and 5.20% next year earnings are the real story.  The analysts predict double digit increases in EPS of 14.60% this year, 12.30% next year and a continued annual EPS growth rate of 10.03% for at least 5 years out.

There is wide and positive investor sentiment for this stock with the CAPS members on Motley Fool voting 1,403 to 86 that the stock will beat the market.  The All Stars agree with a similar vote of 429 to 14.

Of the Wall Street columnists Fool follows 20 have written positive articles with no negative press noted.

If you are looking for a financially strong S&P 100 company to add to your core holdings consider that UTX has:

• Wall Street analysts predicting double digit earnings growth for at least 5 years
• 100% Barchart technical buy signal confirming recent upward price momentum
• Buy recommendations by both Wall Street brokerage analysts and press.
• Large and positive investor following

Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.

OTCBBs for 12/3

Today's screens come from OTCBB stocks hitting the most frequent new highs.  This are highly, highly speculative and are gambles not investments.

HHWW - Horiyoshi Worldwide - As of November 5, 2010, Horiyoshi Worldwide Inc. was acquired by Horiyoshi the Third Limited, in a reverse merger transaction. Horiyoshi Worldwide Inc. intends to engage in luxury apparel business. The company was formerly known as Kranti Resources, Inc. and changed its name to Horiyoshi Worldwide Inc. in June 2010. Horiyoshi Worldwide Inc. was founded in 2006 and is based in Mississauga, Canada.

• 21 new highs in the last month
• up 125.33% in the last month
• Relative Strength Index 95.49% and rising
• New stock - needs to trade for 6 month before getting a Barchart rating

SNWV - Sanuwave Health - SANUWAVE Health, Inc., a medical technology company, focuses on the development and commercialization of non-invasive, biological response activating devices in the regenerative medicine area for the repair and regeneration of tissue, musculoskeletal, and vascular structures. The company’s portfolio of products and product candidates activate biologic signaling and angiogenic responses, including new vascularization and microcirculatory improvement, helping to restore the body’s normal healing processes and regeneration. It intends to apply its Pulsed Acoustic Cellular Expression (PACE) technology in wound healing, orthopedic/spine, plastic/cosmetic, and cardiac conditions. The company’s lead product candidate for the wound care market, dermaPACE, is CE marked for the treatment of the skin and subcutaneous soft tissue and is involved in an FDA-approved Investigational Device Exemption clinical trial in the U.S. for the treatment of diabetic foot ulcers. SANUWAVE designs, manufactures, markets, and services its products for stimulating healing in chronic conditions of the foot and elbow through its U.S. FDA Class III PMA approved Ossatron device; and in the stimulation of bone and chronic tendonitis regeneration in the musculoskeletal environment through the utilization of its Ossatron and Evotron devices in Europe. The company is headquartered in Alpharetta, Georgia.

• 80% Barchart short term buy signal
• 18 new highs in the last month
• Up 20.00% in the last month
• Relative Strength Index 68.69% and rising

BWMS - Blackwater MidStream - Blackwater Midstream Corporation develops and manages third-party bulk liquid fuel, agricultural, and chemical storage terminals. The company was formerly known as Laycor Ventures Corp. and changed its name to Blackwater Midstream Corporation in March 2008. Blackwater Midstream Corporation was founded in 2004 and is based in Westwego, Louisiana.

• 80% Barchart technical buy signal
• 17 new highs in the last month
• Up 54.76% in the last month
• Relative Strength Index 65.03%

Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.

Is there a future for home mortgages?

I'm going out on a limb today and adding Hatteras Financial (HTS) to the Barchart Van Meerten Speculative portfolio.

Before you all call me crazy let me introduce you to the word of the day "Underwriting".  That's a word that hasn't been visited by mortgage underwriters in quite some time.  In the last decade the underwriter would place a mirror under the borrower's nose and is they could detect a breath the loan was approved.

The world has changed.  I'm helping a family member sell a home to an FHA borrower.  The home passed title search, inspection and appraisal with flying colors but FHA is making the borrower just through so many fiery hoops that their credit approval has taken almost 6 months.  FHA has asked for everything but a note of reference by the borrower's first grade teacher.

Fannie and Freddie are requiring a return to traditional underwriting standards and that's my reason for looking to invest in a leveraged buyer of Federally backed mortgages.  My pick is Hatteras Financial for a speculative play.

Hatteras Financial Corp. is an externally-managed mortgage real estate investment trust formed in 2007 to invest in adjustable-rate and hybrid adjustable-rate single-family residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or U.S. Government-sponsored entities, such as Fannie Mae, Freddie Mac or Ginnie Mae. Hatteras Financial Corp. is managed and advised by Atlantic Capital Advisors LLC.

The stock has great recent price momentum and has a 100% Barchart technical buy signal.  The price hit 16 new highs and is up 6.12% in the last month.  The price is around 31.28 which is above its 50 day moving average of 29.66.  Looking at the rise of 11.25% in the 50 day moving average in the last 20 trading sessions helps smooth out the momentum.  The Relative Strength Index is 77.33% and also rising.

Although Wall Street analysts are not willing to make solid projections they are looking for a 21.80% revenue growth next year and 9 have published buy reports with 5 more recommending their long term investors hold their positions.

Investor sentiment is high with the CAPS members on Motley Fool voting 214 to 17 that the stock will out perform the market.  The more experienced All Stars are voting 71 to 5 for the same result.

For the long term total return investor the stock has:

• 14.20% dividend yield
• 100% Barchart technical buy signal
• Wall Street brokerage firms publishing positive recommendations
• Positive investor sentiment

Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.

3 ETFs for 12/2

Let's look at 3 ETFs that came up on my Barchart new high screener:

PXJ - The PowerShares Dynamic Oil & Services Portfolio seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an equity index called the Dynamic Oil Services Intellidex Index (the "Underlying Intellidex"). The Underlying Intellidex is comprised of stocks of 30 U.S. companies that assist in the production, processing and distribution of oil and gas. The Underlying Intellidex may include companies that are engaged in the drilling of oil and gas wells; manufacturing oil and gas field machinery and equipment; or providing services to the oil and gas industry, such as well analysis, platform and pipeline engineering and construction, logistics and transportation services, oil and gas well emergency management and geophysical data acquisition and processing. Stocks are selected principally on the basis of their capital appreciation potential as identified by NYSE Arca pursuant to a proprietary Intellidex methodology. The Fund will normally invest at least 80% of its total assets in common stocks of companies that assist in the production, processing and distribution of oil and gas.

1. 100% Barchart technical buy signal
2. 13 new highs in the last month
3. 14.24% price appreciation in the last month
4. Relative Strength Index 68.74% and rising

PXI - The PowerShares Dynamic Energy Sector Portfolio ("the Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an equity index called the Dynamic Energy Sector Intellidex Index (the "Underlying Intellidex"). The Underlying Intellidex is comprised of stocks of 60 U.S. energy companies. These are companies that are principally engaged in the business of producing, distributing or servicing energy- related products, including oil and gas exploration and production, refining, oil services, pipeline, and solar, wind and other non-oil based energy. The Fund will normally invest at least 80% of its total assets in common stocks of energy companies. The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Underlying Intellidex.

1. 96% Barchart technical buy signal
2. 13 new highs in the last month
3. 11.89% price appreciation in the last month
4. Relative Strength Index 68.39% and rising

IEZ - DJ US Oil Equipment Index ETF - The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Select Oil Equipment & Services Index (the "Underlying Index"). The Underlying Index measures the performance of the oil equipment and services sector of the U.S. equity market. The Underlying Index includes companies that are suppliers of equipment or services to oil fields and offshore platforms, such as drilling, exploration, engineering, logistics, seismic information services and platform construction.

1. 100% Barchart technical buy signal
2. 13 new highs in the last month
3. 14.07% price appreciation in the last month
4. Relative Strength Index 70.03% and rising

Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.

Walgreens shoots up

One of the major investment letters advised their subscribers to buy Walgreens (WAG) on a dip and a lot of investors took their advice. If you were on board great, but it may not be too late.

Walgreens Co. is a national retail pharmacy chain and considered the leader in innovative drugstore retailing. Walgreens pioneered many store features that are becoming standards in the industry. Among those concepts are: Computerized pharmacies, Point-of-sale scanning, Freestanding stores with drive-thru pharmacies, and Intercom Plus, Walgreens advanced new pharmacy computer and workflow system. Intercom Plus allows pharmacists to spend more time counseling patients by assigning administrative tasks to pharmacy technicians.

Price momentum has been very positive recently.  The stock trades around 35.67 which is above its 50 day average of 33.89.  That 50 day moving average has risen steadily these days by 20.54% in the last month.  The stock has an 88% Barchart technical buy signal after rising in price 5.21% in the last month.  The Relative Strength Index is a steady 94.58%.

Although the Wall Street brokerage analysts only predict an increase in sales of 5.90% this year and 5.10% next year they have double digit EPS forecasts,  They estimate that earnings will rise 14.70% this year, 14.90% next year and continue for the next 5 years at an annual rate of 13.45%,

The general investor likes this company and the CAPS members on Motley Fool bet the stock will beat the market with a vote of 1947 to 118 with the more experienced All Stars in agreement 507 to 14.

There have been 18 recent favorable articles by columnists.

I hope you bought on the dip but if you didn't the stocks has:

• Solid and recent upward price momentum
• Barchart 88% Technical buy signal
• Wall Street analysts predicting increased sales and double digit earnings growth
• A positive investor sentiment.

Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.

Profits in increased freight traffic from Asia

Expeditors International of Washington, Inc.(EXPD) is experiencing an increase in revenue of 83% year over year from it's operations in Asia .  They are engaged in the business of providing global logistics services. The company offers its customers a seamless international network supporting the movement and strategic positioning of goods. The company's services include the consolidation or forwarding of air and ocean freight. In each U.S. office, and in many overseas offices, the company acts as a customs broker. The company also provides additional services including distribution management, vendor consolidation, cargo insurance, and purchase order management.

The price momentum of this NASDAQ 100 company brought it into my radar.  The stock has a 100% Barchart technical buy signal with a 7.21% increase in price in the last month.  The stock trades at 52.72 which is above it's 50 day moving average of 48.83..   The 50 day moving average has increase by 19.72% last month and the Relative Strength Index is 65.70% and rising.  You should take notice of this price momentum.

Wall Street brokerage analysts look for great things from this company and project that sales will increase by 48.60% this year and 14.70% next year.  The earnings per share estimates are an increase of 43.20% this year, 15.70% next year and a continuing 5 year annual rate of 14.37% for at least 5 years out,  They above published 6 buy and 11 hold reports for their brokers to push to clients.

The general investing public over on Motley Fool have taken notice and the CAPS members vote 442 to 23 that the stock will beat the market.  The more experienced All Stars agree 162 to 16.

Fool reports that 12 of the Wall Street columnists they follow have published favorable articles about this company's future..

The NASDAQ 100 company has a lot going for it:

• 100% Barchart technical buy signal
• 50 day moving average that has increased by 19.72% in the last month
• Wall Street brokerage analysts and columnists publishing favorable press
• Positive general investor sentiment

Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.