MORNING CALL 1/13

Barchart Morning Call

Barchart.com - Fri Jan 13, 6:36AM CST

OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH17 +0.09%) are up +0.11% and European stocks are up +0.71% after upbeat comments late Thursday evening from Fed Chair Yellen who said the U.S. economy faces no serious short-term obstacles with low unemployment and wage growth beginning to pick up. Stock gains were limited on global growth concerns after China Dec exports declined more than expected. Also, a -1.13% decline in Feb WTI crude prices (CLG17 -1.08%) is undercutting energy producing stocks. Asian stocks settled mixed: Japan +0.80%, Hong Kong +0.47%, China -0.21%, Taiwan -0.33%, Australia -0.79%, Singapore +1.07%, South Korea -0.76%, India -0.03%. Chinese stocks closed lower as exporting companies sold-off on earnings concerns after China Dec exports fell more than expected.

The dollar index (DXY00 -0.15%) is down -0.17%. EUR/USD (^EURUSD) is up +0.39% and found support on a jump in German Dec wholesale prices by the most in 4-years, which bolsters the case for the ECB to taper QE. USD/JPY (^USDJPY) is down -0.04%.

Mar 10-year T-note prices (ZNH17 +0.11%) are up +4 ticks.

Fed Chair Yellen said late Thursday evening that the U.S. economy faces no serious short-term obstacles, but must deal with long-term challenges of low productivity and income inequality. She said “unemployment has now reached a low level; the labor market is generally strong and wage growth is beginning to pick up. Inflation has moved up from a very low level, and it's a little bit under our 2% objective, but it's very close."

The German Dec wholesale price index rose +1.2% m/m and +2.8% y/y, the fastest pace of increase in 4 years.

The China Dec trade balance shrank to a surplus of +$40.82 billion, narrower than expectations of +$47.55 billion and the smallest surplus in 8 months. Dec exports fell -6.1% y/y, weaker than expectations of -4.0% y/y. Dec imports rose +3.1% y/y, stronger than expectations of +3.0% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Dec retail sales (expected +0.7% and +0.5% ex autos, Nov +0.1% and +0.2% ex autos), (2) Dec PPI final demand (expected +0.3% m/m and +1.6% y/y, Nov +0.4% m/m and +1.3% y/y) and Dec PPI ex food & energy (expected +0.1% m/m and +1.5% y/y, Nov +0.4% m/m and +1.6% y/y), (3) Philadelphia Fed President Patrick Harker (voter) speaks on economic mobility at an event in Philadelphia, (4) Nov business inventories (expected +0.6%, Oct -0.2%), (5) preliminary-Jan University of Michigan U.S. consumer sentiment index (expected +0.3 to 98.5, Dec +4.4 to 98.2), (6) Dec monthly budget statement (expected -$25.0 billion, Nov -$136.7 billion).

S&P 500 earnings reports today include: JPMorgan (consensus $1.43), Bank of America (0.38), BlackRock (5.02), PNC Financial (1.85), Wells Fargo (1.00).

U.S. IPO's scheduled to price today: none.

Equity conferences today: none.

OVERNIGHT U.S. STOCK MOVERS

Bank of America (BAC -0.65%) is up +0.5% in pre-market trading after it reported Q4 adjusted EPS of 40 cents, better than consensus of 38 cents

GrubHub (GRUB +0.54%) rose 2% in pre-market trading after being upgraded by Morgan Stanley to 'Overweight' from 'Equal-weight'

BlackRock (BLK -0.70%) reported Q4 adjusted EPS of $5.14, stronger than consensus of $5.02.

GameStop (GME +0.45%) was downgraded to 'Neutral' from 'Outperform' at Macquarie Research with a 12-month target price of $23.

Tractor Supply (TSCO -0.72%) was upgraded to 'Outperform' from 'Neutral' at Wedbush.

Zillow Group (ZG +1.80%) was downgraded to 'Equal-weight' from 'Overweight' at Morgan Stanley.

Independence Realty Trust (IRT -0.44%) was rated a new 'Outperform' at Baird with a 12-month target price of $10.

Signet Jewelers (SIG -0.40%) slid over 1% in after-hours trading after Corvex Management sold 2.5 million shares in a block trade.

WPX Energy (WPX -1.36%) lost 1% in after-hours trading after it announced a public offering of 42 million shares of common stock.

Pandora Media (P +0.93%) jumped 7% in after-hours trading after it said it sees Q4 revenue above its October 25 forecast of $362 million-$374 million citing strong advertising.

Two Harbors Investment (TWO -0.45%) fell nearly 2% in after-hours trading after it proposed a public offering of $250 million of senior convertible notes due 2022.

Uranium Resources (URRE -1.88%) slumped 17% in after-hours trading after it proposed a public offering of common stock, although no size or terms of the offering were mentioned.

Nivalis Therapeutics (NVLS -2.64%) gained 2% in after-hours trading after it announced restructuring plans to "reduce operational costs and preserve cash" while exploring strategic alternatives and named CFO Michael Carruthers as interim president effective Jan 15.

MARKET COMMENTS

Mar E-mini S&Ps (ESH17 +0.09%) this morning are up +2.50 points (+0.11%). Thursday's closes: S&P 500 -0.21%, Dow Jones -0.32%, Nasdaq -0.17%. The S&P 500 on Thursday dropped to a 1-week low and closed lower on some continued disappointment that President-elect Trump did not provide specifics on any of his fiscal-stimulus plans in Wednesday's press conference. There was also continued weakness in pharmaceutical and biotech stocks after President-elect Trump said he would force drug makers to bid for government business to save the government money. Stocks found some support from the +10,000 rise in U.S. weekly jobless claims to 247,000, less than expectations of +20,000 to 255,000.

Mar 10-year T-notes (ZNH17 +0.11%) this morning are up +4 ticks. Thursday's closes: TYH7 +2.50, FVH7 +1.50. Mar 10-year T-notes on Thursday closed higher and the 10-year T-note yield fell to a 6-week low of 2.305%. T-note prices were boosted by the sell-off in the S&P 500 to a 1-week low, which boosted the safe-haven demand for T-notes, and by strong foreign demand for the Treasury's $12 billion auction of 30-year T-bonds that had a bid-to-cover ratio of 2.32, above the 12-auction average of 2.29. In addition, indirect bidders, a proxy for foreign buyers, bought 66.7% of the auction, above the 12-auction average of 61.4%.

The dollar index (DXY00 -0.15%) this morning is down -0.17 (-0.17%). EUR/USD (^EURUSD) is up +0.0032 (+0.30%). USD/JPY (^USDJPY) is down -0.05 (-0.04%). Thursday's closes: Dollar index -0.43 (-0.42%), EUR/USD +0.0031 (+0.29%), USD/JPY -0.69 (-0.60%). The dollar index on Thursday tumbled to a 1-month low and closed lower on continued liquidation of long dollar positions on disappointment that President-elect Trump did not discuss his administration's fiscal stimulus plans at Wednesday's press conference. The dollar was also undercut by reduced dollar interest rate differentials after the 10-year T-note yield dropped to a 1-1/4 month low. USD/JPY fell to a 1-month low as weakness in stocks boosted the safe-haven demand for the yen.

Feb WTI crude oil prices (CLG17 -1.08%) this morning are down -60 cents (-1.13%) and Feb gasoline (RBG17 -0.52%) is -0.0092 (-0.57%). Thursday's closes: Feb crude +0.78 (+1.49%), Feb gasoline +0.0247 (+1.55%). Feb crude oil and gasoline on Thursday closed higher on the sell-off in the dollar index to a 1-month low and on signs of falling OPEC oil production after Saudi Arabia's Energy Minister Al-Falih said that Saudi oil production is now below 10 million bpd, a deeper cut than the 10.058 million bpd it had agreed to and the lowest production in 22 months. Crude oil also found continued support from Wednesday's EIA data that showed strong refinery demand for crude after U.S. refiners used 17.1 million bpd of crude last week, the most since data began in 1989.

GLOBAL EVENT CALENDAR01/13/2017

		Friday, Jan 13
US	0830 ET	Dec retail sales expected +0.7% and +0.5% ex autos, Nov +0.1% and +0.2% ex autos.
	0830 ET	Dec PPI final demand expected +0.3% m/m and +1.6% y/y, Nov +0.4% m/m and +1.3% y/y. Dec PPI ex food & energy expected +0.1% m/m and +1.5% y/y, Nov +0.4% m/m and +1.6% y/y.
	0930 ET	Philadelphia Fed President Patrick Harker (voter) speaks on economic mobility at an event in Philadelphia.
	1000 ET	Nov business inventories expected +0.6%, Oct -0.2%.
	1000 ET	Preliminary-Jan University of Michigan U.S. consumer sentiment index expected +0.3 to 98.5, Dec +4.4 to 98.2.
	1400 ET	Dec monthly budget statement expected -$25.0 billion, Nov -$136.7 billion.
		Tuesday, Jan 17
US	0830 ET	Jan Empire manufacturing survey general business conditions expected -1.2 to 7.8, Dec +7.5 to 9.0.
	0845 ET	New York Fed President Dudley (voter) speaks at a National Retail Federation Conference on consumer behavior.
	1100 ET	USDA weekly grain export inspections.
	1800 ET	San Francisco Fed President John Williams (non-voter) speaks at the Sacramento Business Review Economic Forecast event.

U.S. STOCK CALENDAR01/13/2017

Company	Ticker	Time	Event Description	Period	Estimate
BlackRock Inc	BLK US	Bef-mkt	Q4 2016 Earnings Release	Q4 2016	5.022
First Republic Bank/CA	FRC US	Bef-mkt	Q4 2016 Earnings Release	Q4 2016	1.025
JPMorgan Chase & Co	JPM US	6:45	Q4 2016 Earnings Release	Q4 2016	1.427
Bank of America Corp	BAC US	6:45	Q4 2016 Earnings Release	Q4 2016	0.377
PNC Financial Services Group Inc/The	PNC US	6:45	Q4 2016 Earnings Release	Q4 2016	1.845
First Horizon National Corp	FHN US	7:00	Q4 2016 Earnings Release	Q4 2016	0.254
Wells Fargo & Co	WFC US	8:00	Q4 2016 Earnings Release	Q4 2016	0.999
Bank of America Corp	BAC US	8:30	Q4 2016 Earnings Call	Q4 2016
BlackRock Inc	BLK US	8:30	Q4 2016 Earnings Call	Q4 2016
First Horizon National Corp	FHN US	9:30	Q4 2016 Earnings Call	Q4 2016
JPMorgan Chase & Co	JPM US	10:00	Q4 2016 Earnings Call	Q4 2016
John Wiley & Sons Inc	JW/A US	10:00	Investor Day	Y 2017
First Republic Bank/CA	FRC US	10:00	Q4 2016 Earnings Call	Q4 2016
PNC Financial Services Group Inc/The	PNC US	11:00	Q4 2016 Earnings Call	Q4 2016
Wells Fargo & Co	WFC US	11:30	Q4 2016 Earnings Call	Q4 2016
GameStop Corp	GME US		December 2016 Sales and Revenue Release	2016

CCO, NYMT, TOW,FRPT AND MTW - BUY SIGNALS

Today I added 5 stocks to the Barchart Van Meerten Speculative portfolio for positive price momentum.  The stock added were:

Clear Channel Outdoors (CCO), New York Mortgage (NYMT), Two Harbors Investments (TWO), Freshpet (FRPT) and Manitowoc (MTW).

Clear Channel Outdoors (CCO)

Barchart technical indicators:

• 88% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 15 new highs and up 37.61% in the last month
• Relative Strength Index 70.51%
• Technical support level at 5.83
• Recently traded at 6.11 with a 50 day moving average of 4.86

New York Mortgage (NYMT)

Barchart technical indicators:

• 96% technical buy signals
• Trend Spotter buy  signal
• Above its 20, 50 and 100 day moving averages
• 13 new highs and up 14.87% in the last month
• Relative Strength Index 71.42%
• Technical support level at 5.51
• Recently traded at 5.64 with a 50 day moving average of 4.96

Two Harbors Investments (TWO)

Barchart technical indicators:

• 96% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 13 new highs and up 9.61% in the last month
• Relative Strength Index 71.15%
• Technical support level at 8.31
• Recently trade at 8.44 with a 50 day moving average of 7.92

Freshpet (FRPT)

Barchart technical indicators:

• 72% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 13 new highs and up 20.22% in the last month
• Relative Strength Index 60.31%
• Technical support level at 8.47
• Recently traded at 8.86 with a 50 day moving average of 7.76

Manitowoc (MTW)

Barchart technical indicators:

• 72% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 12 new highs and up 22.34% in the last month
• Relative Strength Index 65.39%
• Technical support level at 5.70
• Recently traded at 5.86 with a 50 day moving average of 4.95

BARCHART MORNING CALL 3/19

BARCHART MORNING CALL

Thursday, March 19th, 2015View Older Reports

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OVERNIGHT MARKETS AND NEWS

June E-mini S&Ps (ESM15 -0.06%) this morning are down -0.05% ahead of weekly U.S. jobless claims and the monthly Philadelphia Fed business outlook survey. European stocks are up +0.28% as they catch-up to yesterday's rally in U.S. equities after the Fed signaled it will proceed slowly when raising interest rates. Gains in European stocks were limited as Greece negotiates with its creditors to avoid default as its funding options dwindle. The yield on the Greek 10-year bond rose to a 1-1/2 year high of 11.51% after the ECB raised the maximum amount of emergency liquidity available to Greek lenders by 400 million euros, less than the 900 million euros requested by the Greek central bank. Greece faces more than 2 billion euros in debt payments on Friday, and government salaries and pensions must be paid at the end of this month. Meanwhile, the action by the FOMC on Wednesday to lower their estimate for U.S. interest rates sparked a rally in German bunds that sent the 10-year bund yield down to an all-time low of 0.170%. Asian stocks closed mixed: Japan -0.35%, Hong Kong +1.45%, China -0.16%, Taiwan +0.86%, Australia +1.86%, Singapore +0.73%, South Korea +0.30%, India -0.53%. Japanese stocks retreated after the yen jumped to a 2-1/2 week high against the dollar on Wednesday, which undercut the earnings prospects for exporters. Commodity prices are mixed. Apr crude oil (CLJ15 -3.78%) is down -3.11%. Apr gasoline (RBJ15 -1.43%) is down -0.94%. Apr gold (GCJ15 +1.09%) is up +1.09% at a 2-1/2 week high after the Fed yesterday signaled a slow pace of tightening. May copper (HGK15 +2.86%) is up +2.49%. Agriculture prices are higher. The dollar index (DXY00 +0.20%) is up +0.18%. EUR/USD (^EURUSD) is down -1.58%. USD/JPY (^USDJPY) is up +0.41%. Jun T-note prices (ZNM15 -0.04%) are up +0.5 of a tick at a 1-1/4 month high.
The ECB raised the maximum amount of emergency liquidity available to Greek banks by 400 million euros ($435 million), less than the 900 million euros requested by the Greek central bank. Greek banks were cut off from regular ECB funding operations in Feb, forcing them onto Emergency Liquidity Assistance (ELA) from the Greek central bank. The 400 million euro increase from the ECB takes the ELA to near 70 billion euros.
Eurozone Q4 labor costs rose +1.1% y/y, a smaller increase than the upward revised +1.4% y/y increase in Q3 that was originally reported at +1.3% y/y.
The Japan Jan all-industry activity index rose +1.9% m/m, right on expectations and the largest increase in 3-3/4 years.
Japan Feb nationwide department store sales rose +1.1% y/y, the first increase in 11 months.

U.S. STOCK PREVIEW

Today’s initial unemployment claims report is expected to show a +4,000 increase to 293,000 and for continuing claims to show a -18,000 decline to 2.400 million. Today’s Feb leading indicators report is expected to show a +0.2% increase, thereby matching January’s increase of +0.2%. The Treasury today will sell $13 billion of 10-year TIPS. There are 4 of the Russell 1000 companies that report earnings today: NIKE (consensus $0.85), Lennar (0.45), Tech Data (2.03), Michaels Companies (0.74). Equity conferences during the remainder of this week include: Bank of America Merrill Lynch Global Industrials & EU Autos Conference on Tue-Thu, Alzheimer's and Parkinson's Diseases and Related Neurological Disorders (AD/PD) on Fri.

OVERNIGHT U.S. STOCK MOVERS

Tech Data (TECD +1.50%) reported Q4 non-GAAP EPS of $1.96, below consensus of $2.03.
Lennar (LEN +1.76%) reported Q1 EPS of 50 cents, above consensus of 45 cents.
Newmont Mining (NEM +3.39%) was upgraded to 'Overweight' from 'Neutral' at HSBC.
Integrated Core Strategies reported a 5.1% passive stake in Dynegy (DYN +3.07%) .
Aetna (AET +1.97%) was upgraded to 'Buy' from 'Neutral' at Sterne Agee.
Cintas (CTAS +1.06%) reported Q3 EPS of 85 cents, higher than consensus of 78 cents, and then raised guidance on fiscal 2015 EPS to $3.31-$3.34 from $3.20-$3.25, above consensus of $3.27.
Wynn Resorts (WYNN -1.33%) was initiated with a 'Buy' at Brean Capital with a price target of $174.
Las Vegas Sands (LVS +2.74%) was initiated with a 'Buy' at Brean Capital with a price target of $65.
MGM Resorts (MGM +3.59%) was initiated with a 'Buy' at Brean Capital with a price target of $27.
Williams-Sonoma (WSM -3.47%) reported Q4 EPS ex-items of $1.52, right on consensus, but then lowered guidance on fiscal 2015 EPS to $3.35-$3.45, well below consensus of $3.63.
Guess (GES -2.45%) jumped 10% in after-hours trading after it reported Q4 EPS of 63 cents, above consensus of 57 cents.
Jabil Circuit (JBL +0.04%) reported Q2 core EPS of 50 cents, stronger than consensus of 45 cents.
Cerner (CERN +0.39%) was upgraded to 'Outperform' from 'Neutral' at RW Baird.
Smart & Final Stores (SFS +0.06%) raised guidance on fiscal 2015 adjusted EPS to 67 cents-70 cents, above consensus of 63 cents.
Herman Miller (MLHR +0.45%) reported Q3 adjusted EPS of 37 cents, higher than consensus of 34 cents.

MARKET COMMENTS

Jun E-mini S&Ps (ESM15 -0.06%) this morning are down -1.00 point (-0.05%). The S&P 500 index on Wednesday shook off early losses and rallied to a 2-week high and closed higher: S&P 500 +1.22%, Dow Jones +1.27%, Nasdaq +1.07%. The main bullish factor was speculation the Fed will be slow to raise rates when it said economic growth “moderated somewhat” and reduced its 2015 year-end federal funds rate median forecast to 0.625% from Dec’s 1.125%.
Jun 10-year T-notes (ZNM15 -0.04%) this morning are up +0.5 of a tick at a new 1-1/4 month high. Jun 10-year T-note futures prices on Wednesday rose to a 1-1/4 month high and closed higher. Closes: TYM5 +1-2/32 points, FVM5 +23.50. Bullish factors included (1) the FOMC’s cut in its U.S, GDP and PCE inflation estimates following the conclusion of its 2-day policy meeting, and (2) the FOMC’s cut in its 2015 year-end federal funds rate median estimate to 0.625% from Dec’s 1.125%, which signals a slower pace of tightening than previously expected.
The dollar index (DXY00 +0.20%) this morning is up +0.178 (+0.18%). EUR/USD (^EURUSD) is down -0.0172 (-1.58%). USD/JPY (^USDJPY) is up +0.49 (+0.41%). The dollar index on Wednesday fell to a 1-week low and closed lower: Dollar index -1.035 (-1.04%), EUR/USD +0.02655 (+2.51%), USD/JPY -1.259 (-1.04%). Bearish factors included (1) the FOMC’s cut in its U.S. 2015 GDP estimate and its year-end fed funds forecast, and (2) the post-FOMC statement saying that the Fed won’t begin to raise interest rates until it is confident that inflation will move back toward its 2.0% target and the labor market improves further.
Apr WTI crude oil (CLJ15 -3.78%) this morning is down -$1.39 a barrel (-3.11%) and Apr gasoline (RBJ15 -1.43%) is down -0.0169 (-0.94%). Apr crude oil and gasoline prices on Wednesday closed higher: CLJ5 +1.20 (+2.76), RBJ5 +0.0765 (+4.42%). Apr crude recovered from a 6-year low and both crude and gasoline closed higher on bullish factors that included (1) the slide in the dollar index to a 1-week low, and (2) the -4.47 million bbl decline in EIA gasoline inventories, a bigger drop than expectations of -900,000 bbl. Crude prices posted a 6-year low after EIA crude stockpiles jumped +9.62 million bbl to a record 458.5 million bbl (data from 1982), much more than expectations for a +4.4 million bbl build.

GLOBAL EVENT CALENDAR03/19/2015

US	0830 ET	Weekly initial unemployment claims expected +4,000 to 293,000, previous -36,000 to 289,000. Weekly continuing claims expected -18,000 to 2.400 million, previous -5,000 to 2.418 million.
	0830 ET	Q4 current account balance expected -$104.1 billion, Q3 -$100.3 billion.
	0830 ET	USDA weekly Export Sales.
	1000 ET	Mar Philadelphia Fed business outlook survey expected +1.8 to 7.0, Feb -1.1 to 5.2.
	1000 ET	Feb leading indicators expected +0.2%, Jan +0.2%.
	1100 ET	Treasury announces amount of 2-year T-notes (previous $26 billion), 2-year floating rate notes (previous $13 billion), 5-year T-notes (previous $35 billion) and 7-year T-notes (previous $29 billion) to be auctioned Mar 25-26.
	1300 ET	Treasury auctions $13 billion 10-year TIPS.
JPN	0030 ET	Japan Jan all-industry activity index expected +1.9% m/m, Dec -0.3% m/m.
EUR	0600 ET	Eurozone Q4 labor costs, Q3 +1.3%y/y.

U.S. STOCK CALENDAR03/19/2015

Company	Ticker	Time	Event Description	Period	Estimate
Lennar Corp	LEN US	Bef-mkt	Q1 2015 Earnings Release	Q1 2015	0.45
Tech Data Corp	TECD US	Bef-mkt	Q4 2015 Earnings Release	Q4 2015	2.033
Michaels Cos Inc/The	MIK US	Bef-mkt	Q4 2015 Earnings Release	Q4 2015	0.743
Mallinckrodt PLC	MNK US	5:30	Annual General Meeting	Y 2015
Tech Data Corp	TECD US	9:00	Q4 2015 Earnings Call	Q4 2015
Michaels Cos Inc/The	MIK US	9:00	Q4 2015 Earnings Call	Q4 2015
Lennar Corp	LEN US	11:00	Q1 2015 Earnings Call	Q1 2015
Keysight Technologies Inc	KEYS US	11:00	Annual General Meeting
Two Harbors Investment Corp	TWO US	13:15	Analyst & Investor Day	Y 2015
NIKE Inc	NKE US	16:15	Q3 2015 Earnings Release	Q3 2015	0.845
NIKE Inc	NKE US	17:00	Q3 2015 Earnings Call	Q3 2015
Platform Specialty Products Corp	PAH US		Investor and Analyst Day	Y 2015

3 AMEX picks for 12/7

Today I'm highlighting 3 AMEX stocks that I found on Barchart new highs screens.

KOG - Kodiak Oil -headquartered in Denver, is an independent energy exploration and development company focused on exploring, developing and producing oil and natural gas in the Williston and Greater Green River Basins in the U.S. Rocky Mountains. The primary function of the board of directors is therefore oversight - defining and enforcing standards of accountability that enable the CEO and senior management to execute their responsibilities fully and in the interests of the Company's shareholders.

• 100% Barchart technical buy signal
• 16 new highs last month
• Up 34.14% last month
• Relative Strength Index 85.26% and rising
• Trades around 5.53 which is 30.2% above its 50 day moving average of 4.24

APP - American Apparel - is a vertically-integrated manufacturer, distributor, and retailer of branded fashion basic apparel based in downtown Los Angeles, California. American operates over 180 retail stores in 13 countries, including the United States, Canada, Mexico, United Kingdom, France, Germany, Italy, the Netherlands, Sweden, Switzerland, Israel, Japan and South Korea. American Apparel also operates a leading wholesale business that supplies t-shirts and other casual wear to distributors and screen printers.

• 96% Barchart technical buy signal
• 12 new highs last month
• Up 41.59% last month
• Relative Strength Index 64.22% and rising
• Trades around 1.60 which is 27.00% above its 50 day moving average of 1.26

TWO - Two Harbors Investments - is a Real Estate Investment Trust that focuses on investing in, financing and managing residential mortgage-backed securities and mortgage loans. Its objective is to provide risk-adjusted returns to investors through dividends and capital appreciation. Two Harbors intends to acquire and manage a portfolio of mortgage-backed securities, focusing on security selection and the relative value of various sectors within the mortgage market. As an investment strategy, the company expects to deploy moderate borrowings through, with respect to Agency RMBS, short-term borrowings structured as repurchase agreements and, with respect to non-Agency RMBS and residential mortgage loans, private funding sources. It may also finance portions of its portfolio through non-recourse term borrowing facilities and equity financing under the Legacy Loan Program and Term Asset-Backed Securities Lending Facility (TALF), if such financing becomes available.

• 96% Barchart technical buy signal
• 12 new highs in the last month
• Up 9.28% in the last month
• Relative Strength Index 84.18% and rising
• Trades around 10.15 which is 8.00% above its 50 day moving average of 9.40

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.