With several Japanese auto manufacturers weakened by climatic events, Ford Motors (NYSE: F) may have got the break it badly needed. Both Honda and Toyota motors have been weakened from the destruction overseas. Coincidentally, Ford and General Motors have seen some buying activity on speculation of increased market share.
After two years of consolidation in a large triangle pattern Sprint (NYSE: S) has made a technical breakout. Trading over 150 million shares and gapping up, Sprint pierced through $4.80 trendline resistance and hasn’t looked back yet.
F5 Networks (FFIV) gave us a headfake today as the market moved lower on the US jobs report. Testing a major trendline, F5 found support and is now moving back up in a tough tape. We expect strength in F5 Networks going forward until that major support line is violated to the downside.
Speculative growth companies like Sina Corp (NASDAQ: SINA) are especially prone to sharp sell offs during periods of overall market weakness. These high beta stocks are even weaker after gap reversals. Sina met up with resistance at the first of two small gap downs made in late February.
Dean Foods (NYSE: DF) has been hit hard over the past few years. The dairy product manufacturer has seen its stock price decline from the mid $20′s to just $10.40 as of today’s close. While the dairy industry has been hard hit with high input costs and slim margins, comments made during this quarter’s earnings release indicate stabalization.
Intel (INTC) is a computer technology giant with a good looking chart. Despite its lack of appeal for traders, this company is attracting our attention. A hefty 3.30% dividend yield and inverse head & shoulders pattern make Intel worth looking at. If it can bust through neckline resistance at $22.00 we think it can generate an immediate 1-2 points of return.
Gap (NYSE: GAP) is a clothing retailer that has been volitile lately. The company experienced a steep sell off in early January, dropping from $22.41 to $18.94 before bottoming. Market trading action caused a small sized gap in the chart near $21.50. We decided to get short with a small sized put option after the gap was filled.
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Today’s scan produced a relatively unknown communications equipment maker named Infinera (NASDAQ: INFN). The chart displays a clear horizontal channel breakout with volume. After almost 2-years of trading in the $6-$10 range, INFN jumped higher on huge volume, recently hitting $11.31 yesterday.
Peter Schiff, of Euro Pacific Capital uses illustrations, humor and storytelling to explain economic and monetary concepts in his book, How and Economy Grows and Why it Crashes. The book uses parody and analogy to compare our current global economy with a small island economy based on fishing.