Last week’s picks*:

VA: SSW -8.25%
ST: NUAN -9.76%
MR: HP -7.26%
SS: LWAY +2.07%

A disastrous week for the stock picks as shares dropped across the board. The best place for investors last week was in cash. Either that or the VIX which jumped to the highest level since February. My one regret is not picking $LAKE which came up on StockTwits and subsequently gained 125%.

Here’s this week’s picks: (vote at the end)

Value

Seaspan Corp. $SSW

Yes, I’m sticking by Seaspan Corp. despite the massive drop last week. I happen to believe that Seaspan is a great business and trading with a significant margin of safety. Of course, undervalued companies often stay undervalued for a very long time. That being said, the stock is now seriously oversold with an RSI of just 15.83.

ssw stock chart

Mean reversion

ITT Corp. $ITT

There are surely numerous options for mean reversion traders this week looking for oversold stocks. I’ve gone with ITT Corp. which is looking so oversold it simply can’t go much lower. RSI is low at just 13.54.

itt corporation chart

StockTwits

Alpha Pro Tech Ltd. $APT

Is it risky buying a micro-cap stock that went up 129% last week? You bet, but Alpha Pro Tech is the most trending stock on StockTwits right now and 77% of users are still bullish so let’s see what happens. My own opinion is that the Ebola crisis will soon become under control. But we could yet see a couple more weeks of panic.

apt stock chart

Short sellers

Luminex Corp. $LMNX

Luminex Corporation hit a new 52-week high on Friday but I would not bet on the stock sustaining those gains over the short term. The company trades with an expensive PE of 52.79 and Friday’s down move was on heavy volume. We could easily see the stock fall back.

lmnx stock chart

Intel Corp. $INTC

Intel has had a great run so far this year and the stock should be a solid addition to long term portfolios. However, the company delivers earnings this week and sentiment seems to have turned negative over the short term. That’s why I can see the stock under-performing.

intc stock chart

Forex

EURUSD

eurusd chart

We had some pretty poor numbers out of Germany last week and we also saw traders pull out of stocks and move into safe havens. Despite that, EURUSD only fell a small amount and price action resulted in an uncertain doji candlestick pattern. I still think there is support for the euro at these levels and I can see EURUSD moving higher this week.

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*Hypothetical results. Commissions and slippage not applied.

Disclosure: I am long SSW.

Additional disclaimer: Please be aware of the usual risks to trading in financial instruments. Please remember the importance of doing your own research and understand the cost to trade including trading commissions and the bid:ask spread.

 


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