Thursday, June 28, 2012

Thursday Evening

S&P futures bulls stepped up at the red zone again (1300-1308). They jammed it up above 1320 during the last hour, and it looks like some big players are pulling out all the tricks. That last hour "save" closed it right at the 20day WMA (1323ish).

Thursday Afternoon

I'll be darned.  It was a tax.
Even though our President said repeatedly that the Affordable Care Act was not a tax the Supremes said, it walks like a duck and talks like a duck so it's a duck.

Thursday Morning

Gator's Chart of the Day: XIDE
Once upon a time on a blog far far away Exide Technologies was the stock of the week.  I think it looks pretty good right here and right now. 

XIDE reported earnings June 8th and now sports a ridiculous P/E of 4.8 and only 4.2 on a forward basis.  Just over 8% of the float is short and it takes almost 10 days to cover.  The target price is 4.93 and Wednesday it traded 28% above average volume.

Price has moved up about 40% over the last 3 weeks so we aren't catching this as early as I would like but it looks to have more upside left.  It just closed above the 200 day for the first time in over a year and has moved into the February gap.

The Trade
I wouldn't chase the open but I would want to get a small piece shortly after the "market on open" orders are filled.  If the stock pauses or pulls back a little I would be ready to add.  I think 4.00 is a reasonable target and that would be about 20% upside.  With a stop just under Wednesday's low of 3.16 you'll have the 200 day above your stop and if it does trip you can watch for a bounce from 3.00 to buy it back if you like.

Note: All statistics from Finviz