Traders Starting to Accept We Have a Valuation Problem

Jul 9, 2020

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01:13 PM PST

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Howdy folks. Is everybody still awake after yet another sleepy session? Geez. Thanks to today's market inaction, the S&P 500 is now right where it was 24 trading days - more than a month - ago. Looks like stocks are getting comfortable where they are too.


Here's the thing about this stagnation... it's a setup. The market has a long history of dishing out huge moves just when the majority of traders have been lulled to sleep, thinking stocks aren't going to go anywhere. We're not there yet, but we're getting close, and I can't help but wonder if the convergence of several support levels is going to help pull that trigger.

Ho-Hum Response to Apple iPhone 7 Speaks Volumes

Jul 9, 2020

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01:13 PM PST

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Good Wednesday afternoon, one and all. How are things?


For those of you who also happen to be Under the Radar Movers subscribers, life is very good right now. You locked in 25% gain on a trade today, with a holding period of just a little more than a week.


That trade was short position (a bet against) in Electromed (ELMD). James Brumley and the URM crew saw trouble for ELMD back on August 29th, and recommended selling it short that same day. It got off to a great start, by falling, but the sellers want crazy today. At one point Electromed was down about 16%. Under the Radar Movers members got out at an average price of around $4.25, translating into a profit of 25% for the one-week holding period.

They Just Locked in a 102% Gain in Three Weeks

Jul 9, 2020

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01:13 PM PST

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Well, that wasn't exactly a whiz-bang start to the new trading week. It's kind of surprising, actually. Usually when traders turn a three-day weekend into a four-day weekend (by taking the day-before session off as well, they come back with a mission. Volume comes in droves. That wasn't the case today though. Volume was a only a little better than average, and the net gain was anemic. Looks like investors are still waiting on that big catalyst to get stocks off the fence.


It certainly wasn't a ho-hum day for those of you who are also subscribers to the Under the Radar Movers service, however.


Remember on Friday we pointed out how the URM newsletter was up a whopping 57% on it Nova Lifestyle (NVFY) trade? Scratch that. NVFY was up about another 30% today, translating into more than a 100% gain on that position in the Under the Radar Movers short-term portfolio.

Can We Afford to Trust This Bullish Persistence?

Jul 9, 2020

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01:13 PM PST

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Happy hump-day, everybody, though if you were counting on some bullishness from the market then Wednesday's action wasn't especially happy. Don't worry - we have something that'll cheer you up.


First things first though. The primary item I want to cross off the checklist today is an apology for any confusion we may have created with the time and date we told you Staffing 360 Solutions (STAF) would be hosting its earnings call and webcast next Wednesday. It will still be at 9:00 am EST. But, next Wednesday isn't the 9th.... it's the 7th, just as Staffing 360 Solutions said it was in its press release last week. I can't even blame it on fat fingers. I just flat out hit the wrong button on my keyboard. Fortunately, everyone seems to have figured it out anyway. I just want to make sure we're all clear on the time and day.

Double Crown (DDCC) Widens the Moat, Staffing 360 Solutions (STAF) Nearing Net Profits

Jul 9, 2020

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01:13 PM PST

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Morning all. As is always the case with a morning edition of the newsletter, there's news from our Featured Stocks... two of them this time, actually. And it can't wait. Their respective news could move each stock.


One of the companies in question is Double Crown Resources (DDCC). You'll recall this is the outfit that developed an ingenious way of shipping things like rice or gravel or iron ore pellets.... commodities normally shipped in the hulls of giant ships, in dump trucks, or in train cars called gondolas (the big rolling vats). Rather than constantly pouring them in and dumping them out every time a shipment has to aggregated or split up, Double Crown came up with the idea of a shipping container that also serves as the dispenser. The whole kit and caboodle is loaded up at the supplier's plant, and shipped as a unit all the way to its final destination; the goods themselves never need to be touched en route. The customer just gets the whole box, and then sends it back empty when they're done with it.


The nearby image is one of these shipping/dispenser containers, called Translock2 (or Translock-Squared). If it looks familiar, they should. They're the size, shape and concept of am intermodal container -- completely stackable -- but they make it easy to access the material without a loader or a shovel.

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