In
this edition...
Momenta
Pharmaceuticals (MNTA), MannKind Corporation (MNKD), Adventrx (ANX), True
Religion Apparel (TRLG), Newport Corporation (NEWP), and Blockbuster (BBI)
are in the spotlight today. After that, we take another look at charts
of the U.S. Dollar and gold.
Stocks
in the Spotlight
Technical
Forecasts for CRBC, LJPC, and BBI
James
Brumley actually made the call back on December
8th, though Blockbuster Inc. (NYSE:BBI)
didn't start getting any obvious traction until this week. Now that it
has though, the movie-rental stock is one of his favorite trade picks.
The key was BBI getting - and staying - above $0.66, which has happened
this week. With a current price of $0.75 (and another higher high), the
Blockbuster Inc. momentum is still building on what could end up being
a triple-digit gain.
Up-Trend
Outlook: NEWP, BANR, ININ
Dennis
Askew makes no bones about his 'buy' rating for Newport Corporation
(NASDAQ:NEWP).
After hitting new 52-week highs on huge volume, effectively raising the
support floor for NEWP to a higher level than before. At the heart of the
positive outlook is a compelling management team for the technology company;
major institutional ownership doesn't hurt either. Newport Corporation
manufactures lasers, instruments, and components for the semiconductor
industry... one of the market's biggest beneficiaries of economic recovery.
Top
Consumer Staples Picks for 2010: TRLG, ICON, NWL, HANS, BARE
The
Small Cap Network is still rolling through its 'best of sector' series,
adding its consumer staples picks this week. Among the best is True
Religion Apparel, Inc. (NASDAQ:TRLG).
The fashion-oriented retailer stock nose-dived in November on weak holiday
shopping fears, though the fears were overblown. True Religion Apparel
has more than survived the recession, which is why net profit margins are
still running a solid 15%. With a P/E almost at single-digits, TRLG is
a 'buy'.
Carl
Icahn's Adventrx (AMEX:ANX) Ready To Run As FDA Filing Date Approaches
M.E.
Garza has been following Adventrx (AMEX:ANX)
very
closely, with the latest chapter in the story focusing on an impending
submission of an NDA (new drug application) for ANX-530. The new drug turns
the chemotherapy drug vinorelbine tartrate - or Navelbine - into
an emulsion intended to treat non-small cell lung cancer. It's not the
only thing in the Adventrx, but it is the most pressing. ANX shares have
perked up as the expectation of the FDA request grows.
Charting
Forecasts of HEPH, MNKD, and SIMG
MannKind
Corporation (NASDAQ:MNKD)
shares
stopped and reversed like clockwork on the 22nd, pretty much like James
Brumley described earlier that same day. Between MNKD closing the October
6th gap and then reaching a major Fibonacci line at $9.50 on the 21st (not
to mention the weight of its recent gains), the deck was stacked against
MannKind Corporation. From here, a revisit to the other key Fibonacci line
at $7.81 is likely.
High
Flyers: NBIX, HNSN, MNTA
Momenta
Pharmaceuticals Inc. (NASDAQ:
MNTA)
is almost a 'buy' for Dennis Askew. The key to getting the drugmaker stock
off the watchlist and into his hypothetical portfolio is the pending approval
for an anti-clotting drug, which - per the company - could happen
before the end of this year. Dennis acknowledges, however, that the risk
in FSA-related matters can be as great as the reward... and MNTA is apt
to be volatile either way. The consensus opinion at this point, though,
is that Momenta Pharmaceuticals is worth the risk.
Gold
Versus the Dollar - Reversal of Fortunes
It's
hard to believe it was only four weeks ago the U.S. dollar was getting
crushed, and gold futures were soaring. Whatever the reason though, both
of those trends have been reversed - dramatically - in December.
More importantly, both of these trends still seem to have more road in
front of them before they've fully played out.
Using
the SPDR Gold Trust ETF (NYSE:GLD)
as
a proxy, we can see gold prices are up today. But, we can also see they
were up on December 16th as well. It was hardly the beginning of a rebound
though. In fact, GLD fell sharply to new multi-week lows the next day.
Today's strength is likely the same kind of bottom-fishing buying. Like
the last time, however, the bullish effort won't be enough to stop
the bearish freight train that's now in motion.
We
still contend gold futures are en route to $1027, which translates into
a target price of $99-$100 for GLD. Those target levels were determined
by using Fibonacci lines, though it's worth noting both are in line with
October's key low or high points.
As
for the greenback, undoubtedly today's mild bearishness will convince a
handful of doom-seekers that the last month's worth of rally was just a
bullish blip on the path to complete financial devastation.
To
some
degree their expectation for downside is probably right - the dollar has
worked its way into an overbought situation, and needs to cool off. On
the other hand, much of that pessimism needs to be reeled in. Even
a strong pullback won't necessarily put the U.S. Dollar Index back into
its prior downtrend.
We're
only looking for the dollar to bleed off its overbought pressure. After
that, it's onward and upward again.
Before
it's all said and done, the Dollar Index should reach its first
Fib line at 79.76 before we even need to think about taking a stance
against it again. Nothing is ever set in stone though, so be sure to stay
tuned for updates on these outlooks.
And
just so you know (though you probably do anyway), it's the dollar's
movement that's mostly fueling gold's movement. Both should be hitting
major milestones at roughly the same time, which is why we're using Fibonacci
lines as our targets on both charts.