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Right Side of the Chart

...because anything to the left is history
  
  • NAT - Feb 12 201620160212
  • POT - Feb 01 201620160201


Active Trades – Long

Active Trades are trade ideas that were previously posted as Trade Setups and have since triggered an entry or occasionally, a trade idea that was first posted directly to the active trades category as offering an objective entry at the time of the initial post. Active Trades might also be listed in one or more of the other trade categories as these categories are not necessarily mutually exclusive. E.g.- An Active Trade that still offers an objective entry might also be categorized under the Trade Setups category. Likewise, an Active Trade with multiple prices targets may have already hit one or more of those initial targets with additional target(s) remaining, thereby falling under both the Active Trades and Completed Categories. Traders should look to make any new entries or add to existing Active Trades objectively, such as a on pullback to a support level during an uptrend or a re-test of a broken trend-line, wedge, or channel pattern.

Feb 122016
 

NAT (Nordic American Tankers Ltd) recently pulled back to support following a rejection off the yellow downtrend line. With a dividend yield of over 15%, NAT will be added as an Active Growth & Income Trade idea with the yellow downtrend line as the current price target & additional targets likely to be added, depending on how both NAT & the broad markets trade going forward. Suggest stop of a daily close below 9.90. Weekly chart:

NAT weekly Feb 12th

NAT weekly Feb 12th

Zooming down to the daily chart, NAT recently reversed off support while at oversold levels which have historically preceded tradeable rallies in this shipping stock.

NAT daily Feb 12th

NAT daily Feb 12th

Please keep in mind that stocks with above average dividend yields, which at over 15%, certainly puts NAT in that category, often run the risk of a dividend cut or elimination. NAT appears to be a case of "the baby thrown out with the bathwater" as the shipping stocks have been in a vicious bear market in recent years. I believe a solid fundamental case for NAT can be made in this recent letter from Herbjørn Hansson, Chairman & CEO of Nordic American Tankers Limited (click to view letter).

Jan 132016
 

With an a current dividend yield of 9.7% and the potential for considerable capital appreciation, POT (Potash Corp.) will be added as a Active Growth & Income Trade idea at current levels. Several near-term price targets are provided for typical swing traders while my current [continue reading…]