Subscriber Chat Room Archive (June 25-July 11)

June 25, 2013 – 2:38 pm

Any concern for Juniper with the news that there is a call to boycott Cisco products and move to Chinese domestic products as a security threat after the NSA revelations?

@jahmon: ?? move to the country that is doing the most spying and buy their products instead of USA based company? trojan horse – not likely

bond market is about to close stocks prepping for the 3pm close there

eryba1 – meaning China may reduce orders for Cisco products because they are seen as a national security risk

@jahmon: that is always possible but that is too hard to game

Just keeping an eye out for risk on my Juniper…throwing it out there

seems odd that GOOG is down

@jahmon: yes for now, very low vol around

better action on low volume

XIDEQ volume dropping. An issue, Cody?

LNN earnings before bell tomorrow

Any take Elad?

@jahmon: Not in it, corrected like all others. I have no insight on earnings chart looks like settling where it bottomed at same level. Earnings and guidance will determine its next direction? W like bottom or decline.

thx

didn’t realize you sold out of all of it. It’s still a pretty big position for me though I’m down on this last batch

Cien lagging the rise

LNN beat big . Nice to see. Looks like a ton a growth left in that stock

@jahmon: yes it sure does

market still in 10 yr bond clutches though. 10 yr was down near 3% market up 120+ now just down 1.5% market up just 74. todays GDP # was weak at 1.8% growth vs expected 2.4%. Not that we want bernanke to inflate abubble but jist on that issue they arent going anywhere I think it was pre mature for market to think QE was ending anytime soon, but market cares little for what I think

telecom spending from csco conf YEST: the first day of presentations was positive. It has reinforced our favorable view on the stock and on the company’s transition away from commodity routers and switches. It’s also encouraged us regarding the potential for upside to Cisco’s earnings as the economy recovers, as information-technology spend picks up and as service-provider revenue returns. It’s worth pointing out that there were 20,000 attendees at the event — double the audience it garnered five years ago — and 250,000 of us were viewing online. During the event, Cisco stressed the importance that it become the leading IT-services company as it leverages software, services, security and hardware. Key growth areas remain cloud, mobility, video and “Internet of Everything.”

Specific to the Internet, CEO John Chambers believes this represents a $14.4-billion-profit opportunity as the number of devices increases globally. By 2020, the number of connected devices is expected to approach 50 billion worldwide. Chambers and Cisco’s chief technology officer, Padmasree Warrior, both made compelling cases regarding how Cisco is well-positioned to benefit from this theme as the company goes from a client-server model to a mobile-cloud one.

apple very oversold having its seeds handed to it. a new product could not come sooner too bad we have to wait for Oct ish. meanwhile niceaction from lnkd, sndk,amzn, lnn

@eryba1: What is your opinion on Cody’s GDX options trade? Isn’t this similar to trying to catch a falling knife like AAPL last fall and winter? Time decay seems like a big risk to me.

@smallmoney: one side of me thinks for a bounce / tyrade to buy some here other side thinks this is a falling safe not knife

@smallmoney: these stocks can easily get further oversold. The indicies are in torupble, cady and others have said are they REALLy holding the gold in reserves thats supposed to be he is not the 1st to mention this. Perhaps to buy physical gold as cody has been doing is the rt thing. These etf’s are granted oversold but can go much lower too. I rather invest in better charts and stocks for now. correction has been quite strong in individual names lets see who finds support first if we have seen the worse.All eye on the 10 yr until they are not

Hopefully Cody will elaborate on the risk-to-reward ratio he mentioned for GDX. I missed that VIX options call trade. Did anyone profit from that?

Greetings Cody

lol

@Bill — see you just came on. Is there any difference between the two chat windows these days?

@smallmoney: At some point these will have a BIG oversold bounce. heck I though I bot the GLD at a great price 131 and sold at 136-7 and now back to 119 its fallen another 15% from those levels I sold at, so for a trade maybe. Its always VERY hard to imagine how GOLD will get to 1500 much less codys other hi targets, but sometimes things happen that change people perception of the trade and things reverse. ard to tell what that would be at these levels though.

I’ve never had a non-simulated options trade where I didn’t lose money from the time decay, implied volatility, and the spread.

Guys, I was in the apple store over the weekend and they were saying business has been good. My sense is apple is way over sold here. I have been nibbling on options all the way down and am close to having my cost basis being less than 3% of the strike. Apple options historically trade at 6-10% of strikes when buying 6 months out. I am also wondering if anyone knows the dates for apples stock repurchase. I believe it is underway and they are keeping a floor under this. Any positive knows will cause a 7-12% bounce – the 50 day is at 438 and the 200day is 457 hence the likely bounce.

@chrismossey: Not sure I’d take the genius’ words for truth. I did see a small line at Best Buy waiting for the “free” iPhone 5 with trade-in yesterday.

@chrismossey: just stay diversified, apple is oversold RSI and all, no one cares until a new product is rumored or seen

It’ll go up if Tim Cook dies

Cody should hang out in the chat room

@smallmoney: yes more than just once a week in 1 hr chat

@smallmoney: and apple should go private as well as it limps along at the most oversold levels since nov 2012

AAPL going private is not going to happen. Are you suggesting Cody talking in the chatroom is as unlikely?

@smallmoney: yes not likely, ofcourse, Cody knows he should be here more often discussed that with him on numerous occassions

Related analysis on gold miners http://www.marketwatch.com/story/gold-miners-facing-a-cave-in-2013-06-26

@jahmon: many will go belly up gold hit 1850 ish and now 1230, 620 points loss near 40%

I’ve seen him come in here and I’ve greeted him or made a comment and he’s left right afterwards 3 times now. This is not industry standard.

@smallmoney: I MAY MAY touch the GD or GDX if they crash from here getting utterly oversold and final woosh washout

I am considering buying some CIENA today

@smallmoney: not a bad idea. What the gold etfs and gold itself need to do is find stability, buying here is a risk on a woosh down or reflex bounce after the endless 8 out of 9 days selling

There needs to be some rational argument in favor of gold’s value, like inflation rising. Maybe gold will go up in late 2014 when that predicted market crash comes.

@smallmoney: in that respect its a guessing game. As in codys e- mail alert today speculating why gold is down

Come meet me in the Live Chat right now – https://tradingwithcody.com/chat

window dressing for the most part is taking affect today, Adding to good performing stocks and selling underperformers

@Cody: Sorry, I wondered away for lunch. I was back in China 3 months ago. All the people who made it big (read: with high level connections) I know of are all busy sending their money out of the country. Not a good sign. People there use “slowly boiled frogs” to describe its market participants: increase the temperature slowly so the frogs won’t jump out of the pot from sudden shock. I think that’s how it’s going be most likely. Unless PBOC does something stupid to really stir the pot.

Samsung and $ARMH stox crashing similarly over the last month. Interesting & probly says something about marketshare. https://tradingwithcody.com/wp-content/uploads/2013/06/Screen-Shot-2013-06-26-at-1.37.17-PM.png

@Cody: VS intel winning vs armh and samsung? not apple gaining at least not by stock action retesting lows

could it be GOLD ETF’s being sold hard into into the 2nd quarter end not to show these badly under performing stocks on the books? Could be lets see their performance the first few weeks on July

@eryba1: Good technical point there, E.

@Cody: samsung decline? points to others gain? or just maxed out?

lets see tomorrow as a result of todays weak GOLD etf’s weak close that a woosh selloff bottom may be near.

@Cody: when i first joined and you intiated your gld short you had a very in depth long analysis on how golds value is percieved relative to other commodities can you reference that article and the person who you quoted and how you feel things are different now.. I understand the biggest difference is price but id like to understand what changed or why that analysis doesnt apply now

XIDE was down over 18% at one point today and finished up 4%…wow…what a roller coaster…

@jahmon: not for the faint of heart

GREAT article on GOLD etf’s. the GLD, as a massive ETF, is forced to buy and sell physical gold holdings as the size of the fund fluctuates. When sellers start dumping the GLD it forces banks to go into the market and sell physical gold into a weak market. The result is what Dicker calls a “cyclical death spiral” that makes calling a bottom an exercise in futility. http://finance.yahoo.com/blogs/breakout/gold-unsafe-price-dicker-135904756.html?l=1

Sad to see LNN fall the day after a very good quarterly report

@jahmon: hence codys remarks about buying it soon and the announcement of low margin items pickup. Diversify so no one item can hurt you

I’m with you and I am diversified. Holding about 7% LNN so a good sized holding that might not do anything for a little while

@eryba1: first chat in a while without a question on aapl? Im gonna buy some of this stock thats gone from loved to hated to indifferent

@jakef1111: interesting indicator

its oversold, hated, growing 10-20% a year, a pe less than betty crocker jello which is growing 2-4% a year

@jakef1111: it was VERY interesting to hear codys take on the asset bubble in stocks biggest potential RUN to come as rates RISE as they did from 1998 to 2000. I recall money market accounts yielding 6% in 2000

@jahmon: 7% nothing to overweight then, will just need to give it more time to work higher over time and as usual monitor it. In general for market low vol upside as we get to what should normally be overhead resistance 50 day moving averages after falling beneath them, so things are volatile

@eryba1: Good point you made about gold. I would be tempted to sell those GDX calls soon if I were cody

@smallmoney: well know more by end of quarter tomorrow if any more dumping to close position off the books. Its hard to trade as with most stocks falling so much no support AT ALL. Today a small bounce so far but the article Dan dicker pointed out and the etf selling of gold to fulfill its actually HOPEFULLY LEGIT holding Gold if price increases needs more to back ETF and if falls need to sell the gold it bought higher thus really shooting itself in the foot.

@eryba1: yea rising rates mean growth a lot of companies sitting on a lot of cash if it goes to work in a recovering economy that sets us up well

@jakef1111: very well may I WISH to see rates at 6% again to lock in CD;’s and the like for different accounts of diff aged clients I have.

I was surprised Cody bashed day trading and futures trading yesterday. I know someone who makes 200K a year day trading the S&P 500 EMINI futures.

@eryba1: i would just like to see qe go away just like i hated when the banks and such were bailed out by tarp…. “The market” corrects imbalances and prices….. Just like giving refis and mortgages created unsustainable growth…. Qe effects business and peoples decisions… How they spend their money how they invest… There have been business cycles up and down forever… Its the markets way of survival of the fittest …. We would all be much better off if big brother enforced laws and let the market do what it does

@smallmoney: short life expectancy for day traders. Aside from that diff strokes for diff folks. I had done some of that in 1999 and it was a heart attack in the making.

@jakef1111: agreed. no QE let market stand on its own for the most part at this point.

AAPL last year is a good example of how technical analysis and charts predict price direction. It’s also a good example of how fundamentals aren’t that relevant to a tech stock’s share price.

@smallmoney: not always. apple is a product specific company, it missed earnings 3-4 times with cook. market wants something new fresh diff categories as well.

FB’s recent post-earnings sell-off is another good example of a head and shoulders chart pattern (technicals) beating out good earnings (fundamentals)

@smallmoney: as usual its all hindsight. Did U know FB would peak at 33 then again rising above 50 day avg to 29 and peaking there after great earnings. earnings made it pop then at 26.6 fell 15-20% but not always the case in the past when it fell under its 50 day moving avg.

It didn’t go to 29 on high volume, and the rsi was approaching overbought levels after the last earnings report

@smallmoney: no hi vol? 100m shares after earnings, either way no point to go bk and forth cant fight stock price for now always wiser to buy into up trending stock thats the safest. many styles out there buy weakness for others no matter chart, market not pricing stock well etc etc different folks different styles that work for them

that is low volume compared to the 190M shares on the january earnings day

@smallmoney: a good example is CIEN pr JNPR to buy weakness jnpr fell to 15 from 22. = greta buy 15 16 17 etc all below 50 day avg at that time. Cien fell under 50 day avg after it reported and jumped to 17.5 it fell to 14 15% decline and now at 19.5

@cody why are companies sitting on so much cash? Isnt the way of business to invest the cash you make to grow your business? Is qe causing inflated asset prices or is it that companies are worried how qe will impact the economy when it stops? Just wondering if you think theres a connection and what makes that money go to work ie buying comp or investing… That would be a big step forward for the economy would it not? Or is it that important to have a years worht of revenue in the bank

lol…Maybe Cody is poring over balance sheets or earnings reports

gld taking another turn down 1.25% in the red woosh coming at end of quarter window undressing perhaps today tom as oversold but we all know can get much further? Very odd ETF must sell commodity it represents as price goes lower thus shooting itself in the foot every time

What is with gold again ???

@ybsng: end of quarter window undressing, people dumping under performing stocks and adding better acting ones

I am getting nervy. Had gold and appl…

@ybsng: read the article I posted at 6:30 this morning scroll all the way up read text and then click article

@ybsng: same with apple dumping into quarters end very oversold now also but no one cares

Thanks eryba1. Hoping for the best now.

@ybsng: dont hope act. diversify, but better acting stocks/ charts like LNKD, GOOG, SNDk,AMZN, CIEN

thats BUY better acting stocks

@ybsng: its VERY LIBERATING to get rid of overweight badly acting positions they can drag you down financially and emotionally exhausting.if they start to act better chart wise stock price wise U can add for ride higher

interesting contrast the gld is down nearly 2% today and the GDX is up 1.5% so far. does this foreshadow a turn perhaps if it holds for the next few days

i am looking to buy the gld at 116 perhaps as early as today liking the gdx and slv move higher and gld trying to hold 116

@jakef1111: xone up near 7%

cody may be rt to buy a basket xone, ddd and ssys

eryba any view on scty??

@rkumar: rather stock with FSLR as the name to go to for me

@eryba1: i think the gld is a buy between 100-105……

rather stick with FSLR for solar the leader

@jakef1111: I know can go lower but today 1st time for now change GDX up near 3% slv .35% gld down 1.6% ODD

Ok bot some gld at 116.6 and a few shares of apple here as well

@jakef1111: its a token sized position nothing more for a trade perhaps or if some stability for a longer duration.

@eryba1: yea the slv is starting to look good here as well

@jakef1111: very strange behavior gold down, GDX up 3.25% solver up in the ETF .

And the slv is at support now

silver etf SLV up .4% yet GLD down 1.5%

either just a coincidence or a fulcrum moment for the GLD as all sellers getting out before quarters end and some buyers stepping in.

Possible bottom in GOLD? editor of the oscilaltor talks why he thinks a GOLD bottom is here now. Watch the video and read the article upside targets $2800-$4000: http://www.cnbc.com/id/100849428. Overnight gold went to 1180 today back to 1200

not that it matters anymore but on the RSI level apple is the MOST oversold in 3 years. End of quarter today whom ever didnt dump losers will / should do so today if they dont want it on their books and reported after today.

How low does Apple go before Tim Cook gets the boot. As David Tepper said in May if the next phone is siimply the same form factor with minimum changes then he will not be able to sell fast enought. I agree. Tim Cook has somehow killed the magic of Apple in 18 months. Sad to see.

The next IPhone 5S looks exactly the same, same small screen and likely same memory size.

Apple will hit $350 in July.

Ah well, so much for caution (mine and I guess I have to say Cody’s) over the past couple of months: after watching BlackBerry/Research in Motion for a couple of months, i finally tried to short it a couple of days ago (pre-ER), couldn’t find any shares to do so…and today it’s down 40%+ . Breathe…breathe. On to the next one!

i think we rally–anyone like anything

@rkumar: gold bottom? strong reversal so far

gdx up 5%

gold yes–gdx ripping higher

@rkumar: fell 54 to 22.5 today

slv might have bottomed as well

bot some vwo

soxx up

If we read upon Accenture and now the fall in IBM cody’s thinking may be formulating. In that companies are going to services cloud based vs everything in house – LNKD, AMZN, CRM

@rkumar: sox transports a good sign

@rkumar: but russel rebalancing and end of quarter so things will be volatile

vwo emerging mkts rokceting

is orcl a buy here??

@rkumar: fell 45 to 36? could a bottom be at hand? or dead cat bounce? heavy volume to start the day

@rkumar: IMHO- NO rather CSCO, INTC, LNKD, CIEN,SNDk,AMZN, AAPL, GOOG, FB GLD etc

thx

@rkumar: I like ORCL a lot here if your time horizon is at least a decade. They are becoming a de facto standard for fueling the cloud.

Cody, Apple- If he 5S is simply the same as the 5 but a few new things does this wash the stock to multi year lows? Dont understand a company with that much cash not investing in ensure their lead. Very poor management. Tim Cook reminds me of Jim Balisille of RIMM 2 years before his departure and implosion.

nice moves in gold today? dead cat bounce bottom? well know more in the coming weeks and months for now 5% moves in slv and gdx are nice GLD needs to play some catch up

Is this a good level to initiate a position in LNN?

@lawrenc338: all depends first buy? averaging down? large position already other??

@eryba1: i’ll answer on behalf of lawrence338, because i have the same question — and this would by my initial buy. Is it a good entry level?

any opinion on rvbd ffiv gotten crushed??

@ebdavids: yes if U want to build a position believe in the company #’s guidance.

@rkumar: No if we were to buy better acting stocks with better looking charts that would be $$ better suited for GOOG,AMZN, LNKD,SNDK INTC etc

@rkumar: thats the decision to make, if U have enough of those other positions and want to open a new one and start with LN here under its 50 day moving avg then thats fine too.

low vol for now rebalancing and end of quarter are sure to get things spiky later on and hard to make meaning from however as it stands tech is clearly winning some people over, a day does not make a trend but as we conclude the 1st half of the year and look to the second where many are looking for tech to take the reins lets see if in the weeks to come tech does not lead. From this weeks weekly chat with cody I quote :

June 26, 2013 – 2:56 pm @Cody: SO what FUELS the tech bubble if the FED has indeed gone too far? The already printed $$ sloshing around? Cody June 26, 2013 – 3:02 pm @eryba1: Did the Dot-Com bubble grow to its greatest heights when the Fed was in “tightening phase” or “easing phase” from 1996-1999? Most asset bubbles blow to their biggest heights while the Fed scrambles to reign in the wild imbalances its already created. eryba1 June 26, 2013 – 3:03 pm @Cody: then if that the case its JUST begun as from 1998-2000 rates rose from what 3% to 6% on MM accounts Cody June 26, 2013 – 3:04 pm @eryba1: Exactly!

and from my e-mail with tom mclellan the founder of his site and the oscillator I like to use to guage one aspect of oversold / over bought nature of the market: this is what he said last night in an e-mail regarding fed tightening and comparing the same scenario in 1998-2000 similar to what I asked cody about on wednesday: “I do look for a powerful rally from a low in September 2013 and onto 2018, irrespective of the Fed.” SO lets see how things develop

that was a one way down close, but tech managed to stay in the green nasdaq, qqq & ndx indexes etf’s for tech all closed in the green. lets see how the 3rd quarter begins next week. The 10 yr eased back a bit from 2.6 % to 2.478 lets hope this settles down if not continues to drop some more. Next week is a short one with 4th of july holiday on Thursday. Enjoy your weekend.

Apple upgraded at Raymond James JUL 01, 2013 | 8:05 AM EDT AAPL was upgraded to Strong Buy from Outperform, Raymond James said. $600 price target. Near term financial trends should stabilize and then improve.

Cisco Systems numbers raised at Piper JUL 01, 2013 | 8:08 AM EDT Shares of CSCO now seen reaching $28, according to Piper Jaffray. Estimates also increased, as the company appears to be gaining momentum in core markets. Overweight rating.

Marvell Technology upgraded at Lazard JUL 01, 2013 | 8:18 AM EDT MRVL was upgraded to Buy from Neutral, Lazard said. $15 price target. Untapped potential in mobile.

@eryba1: loving this aapl rally

@jakef1111: apple, lnkd, sndk,goog those charts looking more positive

@jakef1111: need to see apple break above 450 and and STAY there and move higher into 4th quarter products and all

XONE a beast. I’m up 40% from my purchase on 6/3

@jahmon: that name is looking parabolic. add in TSLA on a tear

would be nice if FB joice the 1% moves in the averages vs being in the red so far today

thats JOIN the 1% move in the averages

aaple moving on upgrade—and iwatch is near

@rkumar: yes and yes

@rkumar: now we need hardware improvements to iphone 5= lose home button on screen bottom place else where, enlarge screen greatly increase battery life, and then software upgrades etc

INTC the only red on my screen…

would like to see more volume behind apple 3.6% rise today. transports leading the way once again. Naz and Russell 2 of the 4 indicies who broke above 50 day moving avg to regain upside momentum.

znga just got a bid up 7% today

msft entertainmnent head may take znga top job as ceo possibly

wow…what a pop on ZNGA

@jahmon: it would be a big deal for MSFT head of entertainment to go to ZNGA as its CEO- shorts being squeezed

znga ripping –yes

Just bought a tranch of TVIX, as Cody’s selling DIA call options. Sold TVIX at the highs last week from buying at this level in the end of May. Very profitable for me.

spielberg and katzenberg from dream works animation praising new ZNGA CEo and they as cramer says this morning on CNBC DONT give compliments easily. stock up another 12+ % this morning stock 3.45

znga yes turnaround story with tons of cash

I’m digging the new ZNGA developments. Good stuff. Wish we had even more.

the new znga is getting paid 95 p in stock options

I made a bunch on EQIX calls last year – Is it time to hit em again?

@Cody: Good morning. Crazy idea/question: do gold mines ever go bankrupt? Based on that article you forwarded yesterday and your comments, would any of those mining companies cited ever qualify for a BK play, or possibly be watched for one? (See? Crazy.)

Sorry hit enter too soon. America West Resources filed in Feb and provided two dead cat bounces but very short windows of opportunity

@msamuels2000: Thanks for the example…

@Cody or @eryba1, if you had a choice between riding out XIDEQ for the rest of the week or buying some CCC today, which one is better?

@TL15: I like ccc

makes sense, that’s what I was expecting

not interested in CATCHING a bankruptcy one way or another- Am more interested in making an investment thats going to grow over time

great point

AM liking the CC charts want to see if it can take out 50 day moving avg to the upside. its been ion a tight range for 3 years 12-18 Lets see it hold 16 handle and then move higher.

let it hold 16.3 range bottom for past few months up here creating a higher W bottom in the stocks chart. Its watch and wait for me for now

Do you think CCC has a catalyst in its future that will allow it to break the range?

@TL15: yes earnings, positive earnings, recognition of their earnings growth, potential, future earnings and that will be the next catalyst as its digesting the move from 12 to 16-18 range for now.

Cody, you bailing on XIDEQ tomorrow?

“I’ll be buying a first tranche of CCC here around $17 a share. ” Cody on 7/2

“I’ll be buying a first tranche of CCC here around $17 a share.” Cody on 7/2 Please explain tranche.

@dcall: let cody come one to explain or U can ask tom in weekly chat- Tranche means buyinh 1/5 or 1/4 1/3 of portion he eventually wants to own. He will decide that ratio for his investment.

Thanks

The U.S stock market will close early at 1 p.m. ET and the U.S. bond market will close early at 2 p.m. ET, on Wednesday, July 3, 2013. Additionally, the U.S. stock and bond markets and the Federal Reserve Bank will be closed on Thursday, July 4, 2013.

Very encouraging study regarding the efficacy of Facebook newsfeed ads. http://venturebeat.com/2013/06/27/facebook-news-feed-ads-generate-49x-more-clicks-at-45-less-cost-study/

@jahmon: Nice find- good article- sets things up into earnings and its future if those stats hold up as they are surely delivering. This and the continued proclamation from CEO’s that FB is where they NEED and WANT to be as it is working and this article is proof positive. Now we need the street to actually care and for investors to believe vs just hate the stock based on the botched IPO.

ok very short trading day today. Portugal rumbling european markets, better us jobs data today. Lets see how the low volume lots of news day goes. Once again the very early start has select tech outperforming.

ODD today on another site this article on CCC codys pick yesterday: Raring to Shake Off the Trading Range By TONI HANSEN | JUL 03, 2013 | 9:00 AM EDT | inShare Stock quotes in this article: CCC I’ll be heading a little bit off the beaten path today in my search for longer-term investments. There are a couple of names that I just can’t shake off my long-term watch list, and I figured it was about time that I started to look at them more seriously. One of those names is Calgon Carbon (CCC), which deals in activated carbon and ultraviolet technology for purifying water, air, food, beverages and industrial process streams. The company recently bought out Hyde Marine, as well, thus also entering the ballast water treatment market.

Calgon shares were hot back in 2007 and 2008, but since then the stock has been stuck, with a trading range averaging between $12 and $18 over the past five years. Earlier this year, Calgon enjoyed a strong recovery back to the upper end. Calgon again entered corrective mode in March, and I don’t think it’s quite done yet. The stock could easily pull back to $15, or even a bit further, before it manages get to get back up on its feet again. That is why I’ve held off writing about it for so long. Yes, the rally into 2013 was beautiful, but the stock needs a chance to catch its breath. How

How it manages to do so will determine whether I end up purchasing it for my portfolio. There are also some concerns from a fundamental perspective. First-quarter revenue shrank 1.1%, but Calgon also saw 8.7% growth in accounts receivable, or money owed to the company — as well as an extended days sales outstanding figure, or days’ worth of sales due to it. A number of things can shift this balance as a company tries to make sure it looks good ahead of earnings. However, such a shift raises the risk that the firm will be unable to sustain posted numbers, and that it will face revenue shortfalls in the near term. At the same time, Calgon has been growing its raw-materials inventory. Does this mean it anticipates heightened demand?

This aside, Calgon Carbon has stepped up its role to become a leader in the removal of mercury from water supplies. As environmental standards tighten, Calgon is in the right industry as the world’s largest activated carbon company focused on municipal water purification. However, here are a few things to keep in mind when you’re considering this stock. First, it is highly susceptible to currency fluctuations, and it relies on economic health to fuel investments in its technology. Environmental concerns typically take a back seat to budgetary concerns. Another question is whether Calgon can really step up to the plate in its sector, or if the competition will prove to be too great.

There are many regional players in the activated carbon market, and competition is also tight for ballast water treatment systems, where at least 20 other options are available. Nevertheless, Calgon’s acquisition of Hyde gives it one of the strongest track records in the industry. Furthermore, on the air pollution side of the business, Calgon’s methods are currently the most effective and it stands out as a true leader. Calgon Carbon also remains intriguing from a technical standpoint, and I will be paying close attention to the stock over the next several quarters. When we see a premature breakout attempt like what took place earlier this year on the monthly time frame, it is very common to see the stock try for a “real” break after it retraces back into the congestion —

and this is where Calgon currently stands. I’m not yet fully convinced, but I am interested.

@cody what do you think of aapls moves on the services side?

tomorrow we get the all “important jobs #” most people will already be on vacation so the volume will be very thin and perhaps volatile, in light of todays near triple digit run up into the # we could easily get a pullback as we get slightly oversold. Lets stay tuned for tom’s # and the markets reaction. Individual stocks are the story today LNKD up 3+ % today znga 4% and tech is leading the day once more

cody: good idea on the delayed chat from today until Mon at 4pm IMHO even a regular 2Pm chat on monday would be fine as well then again wed at the regular time.

@cody Is the tea party real, or has it been co-opted? BTW, it is possible to have change, if ever so briefly. It only depends on someone with reasonable morals in a position of power. Think of Eisenhower and his teacher, Marshall. Have a happy 4th.

@cody You lowered your rating on LinkedIn to 6. Have you soured on it, or was it always s side bet compared to Google. Of course, you only rank Google at 7….

@ cody: sorry for the stupid question but I have never bought gold and I can only put a few thousand dollars. Should I go through a website like goldbroker.com? I use optionshouse for stocks and they don’t trade gold.

intel downgrade off of weaker pc shipments expectation hurting semis. select software tech which on the cover of barrons this weekend saying software was the new hardware ala goog, FB,AMZN, apps. naz now in the red for the day. Gold perking bk a bit after fridays beating.

amzn seems to be looking to break out here at 290 level.

cody we are still on for today rain check CHAT at 4pm to replace last wed chat?

FB has tried quite a few times to break above 50 day moving avg which at todays level stands at 25.25. Lets see if it can do so on good volume at some point in the coming days

Looks like goog wants to visit its highs pre ER

@jakef1111: yes and perhaps beyong same for amzn breakout, throw in LNKD

FB testing 50 day moving avg

Is anyone following goog chart? Any pattern formation?

@subu: looks good

Howdy folks, come ask me anything in the special Live Q&A today at 4pm EST at https://tradingwithcody.com/chat.

Google target boosted at Deutsche JUL 09, 2013 | 8:10 AM EDT Shares of GOOG now seen reaching $1,010, according to Deutsche Bank. Company appears to be firing on all cylinders. Buy rating.

fb finally 25 plus

znga whats a good price to bu7??

@codywillard, or whoever else cares to chime in. Is it worth paying the extra premium for American Eagles over just 1 ounce bars from private mints? The spread is almost 3%. Also, would you agree that 4.25 over spot is pretty fair?

Nice action 2.4% higher on the transports index very very strong, goog resting a bit while aaple regains what it just recently lost. FB at 25.37 getting over its 50 day moving avg.

@drefleury: if you believe we are at or near a bottom in gold and are accumulating here these r pretty good prices relative to where gold has come from $1850 Many astute investors believe we are at or new a bottom such as jim rogers + Tom mcclellan http://www.mcoscillator.com/market_breadth_data/

@eryba1: THanks… I guess more specifically, what’s the advantage to the American Eagle coins over the simple gold bars? They have such a higher premium. Is it because of their trustqorthiness, being government mints?

@drefleury I’ve heard Cody say that they are the most liquid…easy to move…but I’m sure he has more complex thoughts on the advantages/disadvantages that I won’t try to address.

For all the gold bugs out there, historical prices of gold from 1344 to 1998: http://stocktwits.com/message/14458118

Amazon initiated Buy at Citi JUL 10, 2013 | 8:19 AM EDT Shares of AMZN were initiated with a Buy rating and a $340 price target, said Citigroup. Retail margin expansion and the opportunity in AWS are underappreciated by investors.

Facebook initiated Neutral at Citi JUL 10, 2013 | 8:21 AM EDT Shares of FB were initiated with a Neutral rating and a $27 price target, said Citigroup. The transition from desktop to mobile platforms leaves too many uncertainties in the near term.

Google initiated Buy at Citi JUL 10, 2013 | 8:09 AM EDT GOOG was initiated with a Buy rating and $1,100 price target, said Citigroup. The company offers solid secular growth, cost and pricing improvements, and an attractive valuation.

inkedIn initiated Neutral at Citi JUL 10, 2013 | 8:26 AM EDT LNKD was initiated with a Neutral rating, said Citigroup. The stock is expensive, pricing in significant revenue upside.

Apple numbers cut at Canaccord JUL 10, 2013 | 8:08 AM EDT Shares of AAPL now seen reaching $530, Canaccord Genuity said. Estimates also lowered due to slower high ened smartphone sales growth trends. Buy rating.

Terrible loss of capital in that XIDEQ trade. I kept asking about low volume as an indicator that the stock wouldn’t pop up and now lower and lower price on lower and lower volume. Wish we would have sold much earlier.

@jahmon: when you get into a TRADE decide the % U want to get IN or out of 10% up out 10% down out so it does not become an anchor and weighs on you

Cody: SONS long working today

where ever you are. lol

AAPL having trouble with 424 level needs that level to break higher

@RichardG: it had problems at 460 as well. This is strictly a product story. if we get news of something cool diff design with software to boot it will rise its that simple. TV, larger screen phone, longer batter life, watch etc this should then turn higher

technical levels is what i focus on not much into the products or fundies

nice algo move in SONS today

do many people chat in this room?

@RichardG: it varies but there is always some form of dialogue going on

@RichardG: what do your TA say on FB?

was there a Q&A this week???

@srr11: monday at 4pm and today at 2pm

how do i get the monday information?

u didnt get am email with q and a??

oh..i thought there would be an archive on the website

should be

it’s blank

@srr11: let me ask bill why that is

i got the chat email…srry to disrupt the live chat

@srr11: its not blank click on headline for that july 8th date: https://tradingwithcody.com/2013/07/08/cody-kiss-tell-building-baskets-and-weighting-portfolio-positions/

FB is overbought. could stay green another day or 2, but i would not look to buy up here. a short would be in order with another green day.

@RichardG: overbought based on what RSI other?

the market as a whole is overbought. im looking to short. Russell being the most overbought

@RichardG: yes but could easily go sideways or minor decline to work off that overbought nature, wouldnt be the first time or last

among my internal indicators. the trend is bullish, no question. but from a trade perspective, im looking for pullback

@RichardG: I understand

Cody in da house

@srr11: There are archives! WHat are you looking for. Come into the chat room, everybody and chat live with me at https://tradingwithcody.com/chat.

must be FED time

@RichardG: yes more accomodative and saying market reacted to prematurely, lets give this some time to settle in

so funny

someone needs to shave his beard

Hey, you guys. Come in to the Weekly Chat Room for now. RichardG and Eryba. https://tradingwithcody.com/chat.

ive got to step out for about 45 minutes

SONS boom

Oil ripping and $ down not a good recipe for higher market move

@Cody: I may have missed the Q&A “cutoff,” but if you have the time — do you hae a comment on this Motley Fool recommendation on JDS? Normally these guys don’t come CLOSE to the analysis of you-know-who (you), but this brief discussion seems a bit compelling, considering the sector. This is one guy’s recommendation on the “one stock to buy this month” THANKS.

@RichardG: add in the higher move in the 10 yr

yep

@RichardG: however- Oil is now the most overbought all year chart is parabolic, 10 yr is still overbought, the fed is still accomodative and this market is entering earning season on the overbought side lets see what individual names do

Oil a headwind up here for the consumer. has me cautious

@RichardG: yes it can be, price at pump for now not terrible NJ 3.25 a gallon for regular. but as U can see from USO chart its parabolic

Russell on green open tomorrow has it in extreme overbought territory for me, if it stays green today

@RichardG: Just looking sat simple RSI russell is not extreme and using oscillator market is overbought can / needs some consolidation but all year individual stocks are doing their own thing

QQQ 11 in a row. is that a record? lol

@RichardG: perhaps leadership change from 1st half of 2013 to 2nd half, lets watch and see individual names price action

this just dont feel good today. financials, transports and $ all red. yikes

got the machines at work today

@RichardG: u wanted a pullback, does this not entertain u??

lol

a little gladiator humor there

its always about indivudla names, look at AMAT today off very strong conf speech today, TSLA, AMZN, GOOG all good looking charts, FB above its 50 day avg again on ok volume past few days as overall market weak vol

SONS move caught me off guard today, even though it was ripe

lets close them all green give a warm and fuzzy feeling to all

@RichardG: no better red on the averages to work off the overbought nature of the current market

lets go. push

paint the close

@RichardG: let it ride on RED

1 last push

can they do it

hilarious

anyone watching CNBC bernanke speaking S&P futures up 10 dow + 77 as he is speaking LIVE. Gold up 15 dollars

10 year yield going lower as well

lets see what tom brings and how market handles this.

Futures looking VERY powerful to start off the day so far at 4:30am. They have been strong all night long after the Fed chairman’s live Q&A yesterday after the market close. 10 yr yield falling from yest close yield 2.68% to today so far 2.568. Gold up between 25-40 in pre market. Asia was pretty strong with china in the lead up 3+ percent. Lets see if we open this strong futures calling for 1% rise at the open and if these levels hold or get sold into.

As for OIL from an astute investor: “The run in oil represents global strength, not Egypt/Suez. Remember when everyone used to relate it to the dollar? Wrong!”

mass exodus from black berry, executives jumping ship.

looking for luv in all the wrong places

@RichardG you bought XIDEQ too?

huh

joke

oh

dont ya luv a market that goes up for all the wrong reasons

@RichardG: and when it goes down for no reason? trade individual stocks, charts, trends etc

@RichardG: your harbingers of just 18 hrs ago are diminishing today. 10 yr yields dropping 3+ % today. oil down a bit, good consumer / earnings from COSTCO, Earnings will either confirm or deny this move up

we shall see

@RichardG: what shall? we are seeing it, U can fight momentum either way. today maybe time to trim so winners or recent as we head into earnings.

yields dropping, gold flying and $ getting crushed in our central planner and not accountable to no one, imho

@RichardG: Ok lets look at other countries, china sinking, europe trying to stabiize , brazil raised rates overnight to keep people $$ from fleeing the country, our markets doing well, housing improving, jobs starting to pick up a bit of steam

those are all bad things? people look at the glass through their own situations / perspective. In this case if one is on the wrong side of the trend in the market or individual names. Why fight the trend

i agree. the past 6 months or so our markets have soared based on a strong $, growth accellerating. it could be that Ben just squashed that thesis

@RichardG: yesterday he affirmed that? rates went to hi too fast on his testimony 2 weeks ago we had a5% correction in the averages and 10+ % correction in individual names. yesterdays Q&A session he clarified what the market got wrong. He may keep rates lower than most think as per their now DUAL mandate. meanwhile we look at individual companies trends, earnings, growth etc

rumor a Fed governor has resigned. could this be the start? Ben against the world

@RichardG: so R u implying there is just 1 fed gov and BEn?

actually, only Ben lol

Cien doing well, lnkd, amzn, Apple strating to move, gogo chart looks good

aapl ripping finally

any reason tdc ffiv up??

@RichardG: apple above 424 any significance to you? I am looking at 50 day moving avg hurdle at 435 ish

lnkd and cien have some strength behind these moves

as of now, yes now i need the close above 424 for move higher

@RichardG: what r u using fibonacci data?

i have my own internal risk ranges

424 was important to me now i need the close

@RichardG: ok. 424 close or above then amzn has some juice as it continues higher. Ever since my article on AMZN king of the Jungle on 4/29/12 The stock at the time was trading at $250 and has done VERY well. https://tradingwithcody.com/2013/04/29/tradingwithcody-chief-guide-elad-ryba-on-amazon-king-of-the-jungle/ As a prime member and now subscribe and save customer its service is great and we are slowly adding items onto that program, As the stock moves higher it pays for itself many many times over.