Recent Articles in Thematic Research

Pair trade ideas in the Semiconductor Group

I was reviewing the industrials sector and JCI scores very well. On the opposite side of the ledger, MMM very weak. I like the way this pair is setup and see about +10% from here.

The last time we wrote about the solar group was in March of this year as the Invesco Solar ETF (TAN) emerged from a multi-year base.  That ETF and a number of the stocks in that group continue to look very good on an absolute and relative basis, and some of these stocks have high short interest.  

We have a bullish setup in FDS as the stock is emerging above a three-month downtrend with improving money flow.

Here are a couple of ideas within the software group.

I put together three pair trades within the semiconductor group.

BIDU is just under resistance at the upper end of the regression trend channel.

TECD has weak money flow and weekly momentum. The recent throw back rally came into resistance and triggered an ellipse sell signal.

Two buy ideas in the Transport group - JBHT & UPS

AMGN has consolidated over the last two weeks and is now breaking the downtrend off the recent high.

CF has a bullish base in place with good relative performance vs. the All Country World Index (ACWI).

After pulling back to the uptrend off the January low, Ford is breaking a downtrend after a one-month con-solidation. Relative performance vs. the S&P is turning up as well. We see significant upside from here.

GE has cleared above a four-month downtrend and looks poised to break above the MFU-2 level at $11.50 which capped the rally off the December low. We are long and would press the position above $11.50, which will then target $14 at the MFU-3. The rally off the December low to the MFU-2 target was, +75% and we expect another +31% from here in the coming months.

We wrote up TAN back on March 11 as a buy with a target of $28.50. The ETF is approaching that level, but we feel it will extend much higher. Stocks such as FSLR and SPWR have been on the short squeeze list for months, and remain so, which will add fuel to the upside as traders get squeezed. Our Money Flow Units model is indicating higher targets based on the weekly time frame.

Bullish on gold...but this is not the spot to be buying.