Last Friday on CNBC's "The Call," we answered trading questions tweeted to us by viewers.
Ed Ponsi of Barchetta Capital Management, who was back by popular demand on our "Trading on Twitter" segment, reviewed the tweeted questions we were unable to answer during the show.
Here are his comments:
@Peter_Teller10: Strong REITs that pay a good dividend with upside $VNO I see maybe at $105-$110.
Ed Ponsi: $VNO (Vornado Realty Trust) chart looks good overall, it’s been trending higher all year. It might fall as low as $88 (April support AND trend line support) but the dividend should make it very attractive at that price. Good yield is hard to find!
@movingaverages: What would you think of NYSE:EWW?
Ed Ponsi: Ewwwww! That’s the sound I made when I learned that my au pair puts mayonnaise on her corn on the cob. $EWW (Ishares Msci MexiCo Investable Market Index Fund) closed right on its 200-day moving average on Friday, so it could be due for a bounce here. If it breaks below the 200, the next support for $EWW is the March low of $58.
@BigTrades79: Good call on $LAVA last week. I like $BPAX, $LVLT, and $COOL.
Ed Ponsi: Thanks! Last week, we showed some love for $LAVA (Magma Design Automation)—and on Thursday it hit a new year-to-date high—not too many stocks are doing that in this environment.
$COOL (Majesco Entertainment) is on the verge of a breakout, and so is $LVLT (Level 3 Communications), I’d be a buyer if they can hit new closing highs. I’m less enthusiastic about $BPAX (Biosante Pharmaceuticals), which is now well off its recent highs.
@DavidAltonClark: Hi! How about the $SLV Has new uptrend begun? Is the $SLV a valid invest vehicle for Silver? Thanks Dave!
Ed Ponsi: Hi Dave! $SLV (Ishares Silver Trust) is a valid trading vehicle, but it can’t seem to climb above $38. That’s a key level because since a huge gap down in early May, $SLV has failed repeatedly to rally above that level. I’d wait until it shows some strength and buy it above $38.
@Ikayakbr: how's other Weiner - KFT?
Ed Ponsi: Aha! KFT (Kraft Foods) makes Oscar Meyer wieners and other tasty treats, hence the reference. Well, unlike our local politician, this wiener is a winner! Great uptrend, pulling back with the market—I’d look to buy KFT at $33, its 50-day moving average. No matter what happens to our economy, people are not going to give up eating.
@Cromagnonan: Is it good to buy 'LUV'?
Ed Ponsi: Money can’t buy you love, but it can buy you $LUV (Southwest Airlines). Unfortunately, $LUV suffered what technicians refer to as a “black cross”—the 50-day moving average crossing under the 200-day moving average—back in March, and it has been all downhill ever since. This stock also hit its year-to-date low on Friday. I wouldn’t buy it here.
Ed Ponsi: This round goes to Captain Ahab. To be fair, $MOBI (Sky Mobi) only went public six months ago, so we don’t have much history to work with. $MOBI got off to a great start and then blew up about a month ago; it’ll probably come to rest around $5.00, which is its major support level. At that point, it becomes a lottery ticket—you might make money, but there is a ton of overhead resistance.
@Blossom9AnGel: I look at Layne Christensen Company What you think about??
Ed Ponsi: Lots of questions about energy-related stocks this week. After a big pop on earnings earlier in the week, $LAYN filled the gap and gave back its gains. Basically, the stock ignored its good earnings—that’s not the type of behavior we’d like to see. $LAYN is trying to hang on to $27, which is the [year-to-date] low. Under that level I’d be a seller.
@trader_yapudan: chart for $SU or $CNQ oil sands
Ed Ponsi: $SU (Suncor Energy) and $CNQ (Canadian Natural Resources) have both found support after selling off. $SU is just above its four-month low, and also just above its 200-day moving average, which was $38.46 as of Friday’s close.
CNQ is close to its YTD low and is trading under its 200-day moving average. The two charts are very similar; on a technical basis they are right on the edge of support. You’ll probably get a chance to buy them both at lower levels.
@pinoytrader: should we start front running BOJ on $USDJPY or wait lower?
@movingaverages: What would you think of Long USD/JPY 80
Ed Ponsi: We’re nearing a crucial level where the Bank of Japan may push the yen lower, especially if the currency becomes volatile. $FXY (Currency Shares Japanese Yen Trust) has a ton of resistance at 123.00, which is the equivalent of 80.00 on USDJPY (U.S. dollar/Japanese yen exchange rate), and has fallen repeatedly from these levels.
Acting IMF head [John] Lipsky has indicated that the G7 stands ready to intervene to weaken the yen if needed. I’m short FXY and will continue to short up to the March highs, for both the technical and fundamental reasons listed above.
CNBC Data Pages:
- Dow 30 Stocks—In Real Time
- Oil, Gold, Natural Gas Prices Now
- Where's the US Dollar Today?
- Track Treasury Prices Here
Disclosures: Ponsi is short FXY.