Two South American Stocks Bottoming Out

It is always a tough proposition to call a bottom or catch the elusive “falling knife.” But the Chilean ag with lithium exposure, SQM, is sure sporting signs of turning around.

On the monthly chart, first below, SQM has seen an initial surge off major $25 support. Note that the low-$20’s marked massive support during the 2008 crash. At a minimum, one can trade against this level to manage risk.

In addition, CPL, a name I have mentioned before as a potential long-term investment idea, is now at the point where I think taking a starter long-term position is correct. The Brazilian utility, on the second monthly chart below, offers an impressive dividend and is beginning to react to its 2008 crash lows (note this monthly candle forming). You are also getting paid to wait, as Brazil has the World Cup in 2014 and the summer olympics in 2016.

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McD’s has been a seemingly perpetual short idea of mine for a while now. To update the daily chart, below, note the recent breakdown from a bearish rising wedge. If $94.50 is lost, the presumption is new lows are coming.

On the long side, CMG is still (painfully) setting up–Watch it over $561. And BIDU is staging a nice afternoon push.

Come check out @RaginCajun, myself, and tons of talented and generous traders inside our 12631 Trading Service this afternoon for more idea flow and trades.

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The 30-minute chart for the REIT ETF is showing signs of “multiple tops,” in addition to the many topping tails on the daily chart we have been observing dating back a week. Simply put, if bears are going to have any initiative in this tape they should start here.

As far as new long ideas, i am stalking that $25 potential support area on the natural gas ETF daily chart, second below. Watch that 20-day moving average after the recent, violent shakeout.

Drop me some afternoon tickers you are trading.

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Courtesy of The PPT algorithm, here are the most current top five readings from my “12631 RELATIVE STRENGTH” custom-made screen, identifying which stocks are exuding some of the best performances to the market at-large at any given moment.

I look for stocks whose Daily PPT Hybrid Score surges, while the Weekly Hybrid has been negative over the past week. This can often yield stocks which are emerging from consolidations.

Members can click here to view and save the screen.

Sorted for at least 500,000 shares of daily average volume to ensure liquidity.

Please click on image to enlarge.

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On the back of @RaginCajun’s EGLE win inside 12631, keep an eye on NAT SB as other shipper/tanker/bulker stocks setting up reasonably well.

You are looking for further strength above the highlighted daily chart consolidations to get going.

Also, if UNG can hod $25 I an getting interested in UGAZ again (triple-levered levered ETF for natty gas).

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The 30-minute chart for the gold miner ETF is now trading in a well-defined range of late, after the initial surge off recent lows. The $25.75 area down lower is key for bulls to hold onto, as yesterday’s weakness failed to follow-through lower today. If, and I stress if, the gold miners are in a new bull market then this should be about the extent of the silver and miners’ pullback.

Elsewhere, the BBRY JCP short squeezes are in effect, while Tesla is holding firm.

What are you trading this morning?

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