Today I decided to introduce a new segment where I will talk a little bit about individual stocks. This is born out of necessity, since watching the S&P 500 has become rather boring recently. Let me know if you would like me to look at any particular stocks, otherwise I will just dish out updates as I see fit.
Please keep in mind that I do not provide investment advice and that I post these charts for fun. Read the disclaimer.
Intel’s chart was my favorite today. It bounced of a strong support again, allowing investors to enter a trade with a small stop loss a few cents below the support line drawn above. As long as this line holds, we can see this as a re-test or shakeout. The dividend yield is about 3.6% at the current price.
Cliffs Natural Resources
CLF has been hammered down from above 100 to 36 within the course of one year. In July we have seen a selling climax / panic bottom and a short rally. We are now re-testing the lows on decreased volume. If the lows hold, and if the stock bounces again, it should be a fantastic buy. The dividend yield is about 6.7% at the current price.
CLF (iron ore provider) is still facing strong headwinds due to the slowdown in China and the recently announced reduction in PMI. It is a contrarian play for long term investors.
China Mobile Ltd.
CHL got hit hard due to a miss in earnings expectations. Earnings still grow nicely, the dividend yield is good and the growing China middle class should boost this stock on a long time frame. This could thus be a good buying opportunity. My stock screener spit this out a week ago on the dip and subsequent holding action. I still like this stock, but I would watch the reaction on the 10 SMA and 20 EMA. As long as we can hold above the recent lows, a pullback could be a good opportunity.
The dividend yield is about 4% at the current price.
Considering the volatility on this stock, it takes diligence and discipline to make money. However, volatility also brings the greatest opportunities.
See you in my next market update.