Sunday, February 20, 2011

Advanced Cell Technology: Easy 10% Pop?

In December of 2010 i made 88% off of short term trading of Advanced Cell Technology (ACTC). So out of boredom, i went back and took a look at how the speculative stem cell therapy company was trading. What i found was quite nice. Almost all of the technical inidcators suggested the stock was very oversold and was due for a turn around shortly. The day i checked, ACTC had a share price appreciation of 4%, further confirming the indicators signals.

Personally, i think the market as a whole is overvalued. But until more investors and traders, managers etc start to realize this, i see no reason not to take advantage of the irrational over-bullisness. The fundamentals of ACTC make out as well. When the Nasdaq rises in value almost always the OTC follows right behind it, so at this current point ill buy into this "rally", and realistically ACTC is one of the top stem cell companies on the market. Which means over bullish investors, or managers looking to buy some speculative investments may pick some shares of this company up for the potential of a high yield.


Every indicator above (Plus many more the free version of stockcharts wont allow me to use at once) shows that the stock is over-sold.
  • All stochastic oscillators point towards ACTC to be oversold and to begin climbing into a upward trend.
  • The DPO shows ACTC is due to turn north.
  • What is a very good sign in my opinion is that the MFI (Money Flow Index) points to more equity in accumulation of ACTC shares to be climbing.
  • More less all technical indicators suggest a buy.
What is of important notice is the Bollinger Bands have contracted very narrowly. When this happens, it almost invariably leads an equity from choppy sidesways trading to a breakout either upwards or downwards, and with all the technical indicators pointing towards ACTC being over-sold, i believe it will rise in price from its current .18 cent level to resting at .20 cents .22 cents top's in the short run.

Tuesday, February 1, 2011

Advanced Micro Devices: Great Short Term Momentum Trade?

Advanced Micro Devices (AMD) witnessed a 5% surge in its share price after a day of high volume trading. AMD had recently been trending and trading in bearish territory due to getting creamed by competitor chip maker Intel (INTC). AMD has seen a very generous 10.6% rise in the past 5 days, now i would typically find that fast of a rise to be a tad bit irrational, and maybe it is. However, technical indicators point towards a reverse trend from downwards, to upwards movement. Before we hit the charts, lets see some fundamental reasons why AMD share's are poised to rise in price.
  • PEG ratio of 1.32% (Low)
  • New and more economical chip sets taking market share from Intel.
  • Investors recovering, from the behavioral reaction towards the surprise firing of AMD'S CEO in recent days.
  • Net operating income increase of $67 million compared to Q3 of 1 million.
All of these factors show fundamental reasons for AMD to rise in value. Today many analyst's upgraded AMD'S future outlook from reduce/hold to buy. Now lets take a look at the charts.

Here we can see that many technical indicators have taken a entirely different direction.
  • The CCI has emerged from oversold territory trending now upwards, indicating a bullish trend is now in play.
  • The Slow Stochastic Oscillator has crossed the sell signal, now giving off a buy signal.
  • The Parabolic SAR indicator is suggesting a new trend upwards is beginning.
  • The bollinger bands also indicate this a rebound of the current down trend.
The Stochastic Relative Strength Index shows its soared into the overbought territory. However looking at historical data of this indicator, its hows these overbought conditions typically continue for a duration of 3-4days. This mean's to me we can expect more gains for AMDS stock in the following trading sessions.

From a behavioral point of view, 87% of fellow investors/traders predict AMD shares will make gain's tomorrow and over the following 3 days. So it seems that sentiment towards AMD's stock is favorable as well.

Conclusion? It appears that all Technical and Fundamental indicator's point towards this stock being a short term buy. I would predict that we should see a upward moving trend for another three to four, maybe five trading sessions. I predict AMD will rise 9-13% before pulling back. As for long term share appreciation, well that's a different story. With so much market share being taken away by Intel, it may be a long time until AMD witnesses any significant share price appreciation, but for the short term i think its good for a solid 10 point pop.