Monday, January 28, 2013

Chart walk update

In our previous chart walk update of Jan. 15 we looked at four promising stocks which all shared the common attribute of earnings momentum and price momentum.  In this entry we’ll update the progress of these stocks.

NiSource (NI), a gas distribution stock, was seen strengthening on the back of strong internal momentum within the oil/gas sector.  The stock has since rallied nearly $1/share.  Traders currently long this stock might want to raise stops to slightly under the 15-day moving average intersection at the 26.00 level (closing basis).

Concerning Norfolk Southern Corp. (NSC), a railroad stock, I previously noted that it was a member of the ultra-strong transportation sector and was expected to play a belated game of “catch up” before earnings season ends.  NSC has since rallied $4/share.  You might want to take some profit if you’re long and raise the stop to the 66.35 level (closing basis) where the 15-day MA intersects in the daily chart.

Northstar Realty Finance Corp. (NRF) also rallied since our previous “chart walk” update, though I don’t personally recommend trading stocks whose dividend yield is above 5% as is the case for NRF.

I wrote concerning Old National Bancorp (ONB):  “A laggard bank stock that looks like it could finally catch up to its elder brethren during this earnings cycle.”  ONB looks like it has finally begun playing catch-up, having rallied almost 3% and broken above a 3-month trading range ceiling as of this writing.  I recommend using a conservative stop loss if you’re currently long this stock.

[To subscribe to the Momentum Strategies Report, follow this link:  Bonus: Subscribe today and receive the 2013 Forecast issue.]

No comments: