"Ford (F) looks like a 'no-brainer' trade; there are many things to like about the world's fourth largest automaker, which appears to be on a major growth trajectory," says Dr. Melvin Pasternak.

The editor of Double-Digit Trading explains, "In addition to strong fundamentals and a compelling valuation, the technicals for Ford shares look very enticing.

"For starters, it was the only major U.S. automaker able to skirt bankruptcy during the financial crisis. And due to aggressive cost cutting, it is on target to have one of its strongest years ever.

Continue reading Ford (F): A 'No-Brainer' Trade

Ford (F): A 'No-Brainer' Trade originally appeared on BloggingStocks on Mon, 15 Nov 2010 10:30:00 EST. Please see our terms for use of feeds.

"Commodity prices are surging. But rather than recommending a pure commodity play, I'm intrigued by Deere & Co. (DE), the world's largest manufacturer of lawn and farm equipment," says Dr. Melvin Pasternak.

The editor of Trade of the Week explains, "The stock not only benefits from strong commodity prices, but also more profits for farmers. And with farmers seeing fatter profits from their crops, many are taking the money and putting it into new farm equipment.

"According to the Association of Equipment Manufacturers, September sales of row-crop tractors increased by +46.9% from August, while four-wheel drive tractor sales rose +20.5%.

Continue reading Deere & Co. (DE): Bet on 'Big Green'

Deere & Co. (DE): Bet on 'Big Green' originally appeared on BloggingStocks on Tue, 02 Nov 2010 10:20:00 EST. Please see our terms for use of feeds.

"A data warehouse is a technology that manages vast amounts of electronic information; businesses that help other companies effectively manage and store data have become hot commodities," says Dr. Melvin Pasternak.

The editor of Double-Digit Trading explains, "One such player is Teradata (TDC), our latest recommendation.

"A bidding war recently erupted between Hewlett-Packard and Dell over data storage company 3PAR. During the bidding process, 3PAR's stock price more than tripled. Ultimately, Hewlett Packard managed to win the battle, but the data storage war itself has not been won.

Continue reading Teradata (TDC): A Buy in Data Warehousing

Teradata (TDC): A Buy in Data Warehousing originally appeared on BloggingStocks on Mon, 11 Oct 2010 10:20:00 EST. Please see our terms for use of feeds.

"You may currently use your smartphone for making calls, checking the Internet and snapping the occasional photo; but wouldn't it be convenient if it served as a credit card as well?" asks Dr. Melvin Pasternak.

The editor of Double-Digit Trading suggests, "Sound unreal? It's not. Mobile banking is a new and fast-growing trend. And one company making this possible is VeriFone Systems (PAY).

"Using small chips that emit short-wave signals, banking information can be securely transmitted from your smartphone to the cash register. You can make purchases by simply waving your phone over the store's chip.

Continue reading VeriFone (PAY): Smartphone Credit Cards?

VeriFone (PAY): Smartphone Credit Cards? originally appeared on BloggingStocks on Thu, 30 Sep 2010 13:30:00 EST. Please see our terms for use of feeds.

Continue reading Clorox (CLX): More Than Bleach

Clorox (CLX): More Than Bleach originally appeared on BloggingStocks on Fri, 03 Sep 2010 12:30:00 EST. Please see our terms for use of feeds.

"Ford Motor Company (F), publicly traded since 1956, was the only major U.S. automaker to avoid bankruptcy during the 2008 to 2009 financial crisis," notes Dr. Melvin Pasternak.

The editor of Double-Digit Trading explains, "Ford didn't just skirt bankruptcy -- it has begun to flourish. Here's a look at the bull technicals and fundamentals behind this company.

"This July, the world's fourth-largest automaker reported its best quarterly profit since 2004. The company also achieved strong earnings gains for the fifth straight quarter.

Continue reading Ford (F): A Fundamental and Technical Buy

Ford (F): A Fundamental and Technical Buy originally appeared on BloggingStocks on Fri, 06 Aug 2010 12:40:00 EST. Please see our terms for use of feeds.

"General Electric (GE) shows solid earnings growth potential, is attractively valued and appears to be a bargain at its current share price," says Dr. Melvin Pasternak.

The editor of Double-Digit Trading explains, "Fundamentally, GE's earnings recovery could carry the stock higher. The company expects 2010 to be a turnaround year. GE should benefit from $3 billion of cost cutting and restructuring measures.

"GE operates in more than 100 countries. And GE continues to expand its presence in India and China.

Continue reading General Electric: Fundamental and Technical Buy

General Electric: Fundamental and Technical Buy originally appeared on BloggingStocks on Fri, 30 Jul 2010 11:00:00 EST. Please see our terms for use of feeds.

"This Fortune 500 company operates 15 oil refineries throughout the United States, Canada and the Caribbean. Its refineries have a combined capacity of 2.8 million barrels per day, an amount equal to about 1% of the 400 million gallons of gas used daily in the United States.

Continue reading Valero Energy (VLO): Refined Potential

Valero Energy (VLO): Refined Potential originally appeared on BloggingStocks on Tue, 23 Mar 2010 12:00:00 EST. Please see our terms for use of feeds.

This post is part of a special report, Top Picks for 2010, the 27th annual survey in which TheStockAdvisors.com asks the nation's leading advisors for their single favorite stock for the new year. See all 80 stocks listed here.

"Fundamentally, Amdocs (DOX) has a bargain basement valuation based on its price to growth," says Melvin Pasternak, in selected the stock as his top pick for 2010.

In his Trade of the Week, he adds, "Technically, on a two year weekly chart the stock has broken out to the upside."

Continue reading Top Picks for 2010: Amdocs (DOX)

Top Picks for 2010: Amdocs (DOX) originally appeared on BloggingStocks on Sat, 26 Dec 2009 11:00:00 EST. Please see our terms for use of feeds.

"Starbucks Corporation (NASDAQ: SBUX) is poised to make a comeback," says Mark Skousen in his premium trading service, The Turnaround Trader.

The stock is also a technical buy recommendation from Melvin Pasternak in his Swing Trader newsletter, which forecasts that a new uptrend is emerging for the stock.

Mark Skousen explains, "Starbucks, the world's largest coffee chain, is starting to grow again after a lackluster year of slow sales and earnings gains. The stock had been trading as high as $40 a share at one point before its pull back.

"Now, the company is controlling costs, while expanding its services and products. For example, new breakfast sandwiches are expected to add an estimated $200 million a year to company revenues.

Continue reading Volatile Markets: Starbucks (SBUX) is ready for a comeback

Volatile Markets: Starbucks (SBUX) is ready for a comeback originally appeared on BloggingStocks on Thu, 16 Aug 2007 12:10:00 EST. Please see our terms for use of feeds.

Swing trading is a strategy in which stocks are bought for expected gains in a period of weeks to months, and a leader in this area is Melvin Pasternak.

The editor of Swing Trader says that in the current market environment, his intention is to "go long on stock with positive earnings surprises and strong technicals." One candidate that meets this criteria is Boeing Co. (NYSE: BA).

The advisor explains, "Wall Street had estimated BA would earn $1.16 per share on $16.2 billion in sales. Instead, the aircraft giant made $1.35 per share on $17 billion in revenues. When results were announced, the shares were trading near $104; they subsequently gapped up to near $108."

Pasternak continues, "Although BA was not able to hold its gain given the massive overall market selling pressure, it finished virtually unchanged during last week's decline. In so doing, its relative strength soared. When the market stabilizes, it should be one of the leaders of a recovery rally."

Technically, he states, "BA remains well above its 10-week moving average. It is also above the upward-sloping 30-week, the signature of a stage II advance. Technically, the ADX and MACD remain on strong buy signals."

The technician concludes. "Although the stock has been overbought on measures such as stochastics and RSI for some time, it has been able to continue its advance. I think BA can trade much higher and have set a target of $119.95. I would exit the position if it breaks a mid-June low of $93.58."

Each day, Steven Halpern's TheStockAdvisors.com features the latest investment ideas and market commentary from the financial newsletter community.

Boeing: A swing trader's bet originally appeared on BloggingStocks on Wed, 01 Aug 2007 11:48:00 EST. Please see our terms for use of feeds.

Last week, I featured a post from turnaround expert George Putnam, who forecast that after several years of sideways action, General Electric (NYSE: GE) was poised for long-term improvement.

The stock is also gaining attention from advisors who focus on shorter time horizons. Indeed, trading expert Melvin Pasternak is now recommending the shares for a move to the mid-$40s.

The editor of Swing Trader explains, "GE peaked at just over $60 in early 2000. From there, the stock lost nearly two-thirds of its value, hitting a low near $20 toward the end of the 2002 bear market."

The technician continues, "The stock had been marooned in two prolonged trading ranges over the past two years. The first occurred from late 2005 to late 2006, between roughly $30 and $35. The second was from January 2007 to July 2007, from approximately $33 to $38."

Since recently reporting earnings, he asserts, "GE is showing new life. It has broken decisively out of its trading range and is climbing its upper Bollinger band higher."

Volume, he notes, has been about 35% above normal weekly levels in recent weeks, which he states is suggesting strong institutional accumulation. He adds, "The stock is above an upward-sloping 30-week moving average, suggesting it is in a bullish phase."

For the technically savvy, he notes, "ADX and MACD are on strong buy signals. Stochastics and relative strenth are somewhat overbought, but given the long base GE is breaking out of, I am not concerned." The trader's target for the shares is a move to $44.95.

Each day, Steven Halpern's TheStockAdvisors.com features the latest investment ideas and market commentary from the financial newsletter community.

Swing Trader sees 'new life' for GE originally appeared on BloggingStocks on Tue, 24 Jul 2007 09:29:00 EST. Please see our terms for use of feeds.

"Taser International (NASDAQ: TASR), a maker of stun-guns used for police work, corrections, and personal defense" is a new trade from technician Melvin Pasternak in The Swing Trader.

On a split-adjusted basis, the stock peaked in the mid-$30s in 2004. The advisor notes, "Dogged by bad publicity about its guns, it declined to just above $5 per share in October 2005." The shares then rallied to the $11 range in the spring of 2006, he points out, and have been trading in a broad range between $6 and $10 since that time.

However, in late May, he notes, TASR "blew through important resistance just above $10 on volume about double normal weekly levels." In addition, he says, "This past week, the stock added to its gains and probed key resistance just above $11 before retreating." Volume, he adds, was again very strong.

For the more technically-inclined, the advisor explains that the stock has broken a relative strength downtrend line, and that line is "convincingly above its own moving average for the first time in many months." In addition, he notes that the stock's MACD is on a buy signal. With the shares breaking out of a multi-month base, he believes they are posted to move higher.

To determine the possible upside, the tecnician looks at the stock's base, which he notes it $3 in height. He says, "According to the measuring principle, the stock should now reach about $13 per share."

For more stock picks from the leading financial newsletter advisors, visit Steven Halpern's free daily website, TheStockAdvisors.com.

Taser: A 'stunning' trade originally appeared on BloggingStocks on Tue, 05 Jun 2007 13:53:00 EST. Please see our terms for use of feeds.

same situation here...too much summary/too little analysis

In his Swing Trader portfolio, Melvin Pasternak looks for technically strong short-term trades. Among his latest "long" ideas is Peabody Energy (NYSE: BTU), which explores for and mines coal and develops technologies to convert coal to fuels such as natural gas.

Pasternak bases his recommendations on rather sophisticated technical indicators such as doji candle formations, relative strength, Bollinger bands and MACD.

For those unfamiliar with these terms, one can simply note that he considers the stock both fundamentally favorable, and technically poised to move higher. He explains, "BTU has had a great run, going from near $10 a share in early 2004 to the mid-$70s in 2006. From there, BTU pulled back substantially, reaching a low of $32.81 in September 2006 before rebounding.

For the more technically-inclined, he says, "For the past several months, BTU has consolidated, establishing what appears to be a stage I base. In the last several weeks, the shares have broken out above their 30-week moving average (which is again beginning to slope upward), signaling the possible beginning of a stage II advance.

"Despite forming a doji candle, the candle remained outside the upper Bollinger band, which is a continuation signal. The relative strength line has broken a prolonged downtrend and is back above its own moving average for the first time since the summer of 2006.

"BTU has formed an ascending triangle with resistance at $50. Just above that, there is additional resistance at $52.75. ADX is on a buy signal and MACD is bullishly trading up through the zero line. My target on Peabody is $64.95 with a stop loss at $41.89."

For more stock picks from the leading financial newsletter advisors, visit Steven Halpern's free daily website, TheStockAdvisors.com.

BTU: Technician lights up Peabody originally appeared on BloggingStocks on Thu, 17 May 2007 16:30:00 EST. Please see our terms for use of feeds.

"Another week and another 6-1/2 year recovery high for the S&P 500," says technical analyst Melvin Pasternak -- who sees several reasons to remain bullish. Indeed, Friday's close put the index above 1500 for the first time since September 2000. So what's next?

The editor of Swing Trader believes the S&P is now within "easy striking distance" of the all-time closing high set March 14, 2000, at 1527.46 and the intraday peak of 1552.87 made that same day.

As the rally over the past week unfolded, he notes, stocks rose on both economic statistics and takeover activity. He points to last week's report from The Institute for Supply Management (ISM), which saw its Manufacturing Index increase from 50.9 in March to 54.7 in April.

He explains, "That number allayed fears the economy might be cooling too quickly." He adds, "Even Friday's tepid non-farm payrolls number of 88,000 did little to dishearten the bulls. Instead, traders put together all the week's statistics and saw an economy that was not too hot nor too cold."

This "Goldilocks scenario" of moderate economic growth and tepid increases in labor costs, he explains, means inflation should stay low. As a result, he says, "This increases the likelihood the Fed will leave interest rates unchanged or even lower them in the coming quarters."

Continue reading S&P 1500: What's next?

S&P 1500: What's next? originally appeared on BloggingStocks on Sun, 06 May 2007 13:25:00 EST. Please see our terms for use of feeds.