Welcome to another trading week here at objectiveforex.com
Last week was very exciting with strong gains on all fronts.
We alerted URRE at 1.33 last week, and it exploded reaching as high as 2.02 (For a gain of 51%) however it backed down to 1.46 as of Friday. Our other play INVT also exploded hitting 1.63 (Up 10% from our alert). We recommend you keep these tickers on your watch-list as they have both fallen back to attractive buying levels.
This is why we concentrate on value small caps, as these giant gain swings are simply impossible to capture safely for the long term/retirement investor. This also shows why a carefully and intelligently managed swing trade portfolio can be so valuable to younger investors and traders who are more open to mild risk.
Forex Play
LONG EURUSD at 1.1
Technically strong buy indication. Although forex volume has been down heavily we see investors easing back into EURUSD for the time being as the pair remains stable over the next few weeks.
Stock Picks This Week
CLVS (Clovis Oncology) We've found some hidden value in a slightly larger small cap based on oncology. This biotech boasts a $900 million market cap and absurd institutional ownership (98%), and for good reason as CLVS just received news that the FDA has given priority review to one of their upcoming cancer treatment options. The market reacted very positively to this news and we see momentum carrying over past the $25 levels. This company traded around $100 on worse news just a year ago. As traders rediscover this undervalued company making the right moves to turn around share price we see a continual push upwards in the next few months and likely in the very long-term time-frames. We recommend waiting a while after market open and establishing a strong position if price holds at these interesting levels. Monday should be a good entry for growth throughout the week.
Buy recommendation under $23.00
Cryptocurrencies
Long NXT at 3700
Long DGB at 52
Continuing our same plays from last week, we saw an interruption in the bearish slide in NXT as manipulation runs wild. We anticipate bigger and bigger swings and volatility ultimately pushing NXT upwards past 4000 for good as big players scramble to secure a bigger ardor stake at these cheap prices. The snapshot period for ardor ends in late October.
DGB returns back to bargain levels at 52, and we imagine 49 is the hard floor that won't be passed any time soon.
XMR seems interesting as the dark net has adopted it as a safe currency to use over bitcoin due to more privacy features for transactions. XMR is up heavily since August 26th, over 100% from the news. We remain cautious and will wait for price to stabilize before establishing a position here.
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UQM showed great promise through the week, touching up to 0.65 however a sharp sell off happened just before close on Friday dropping share price down around 8% to 0.55, due to the volume and quick sell off we assume these are large short share block sells combined with a large position scale out. This action is unfortunate however we still see long term potential with UQM, we will keep UQM active on our dedicated stock picks page.
Update: UQM bounced back quickly to 0.58 as of 8/24/16.
TRXC seems to be glued in the $1.40 range, we see upside however with such stagnant price and volume drop off we recommend an extremely tight stop loss or no position at all until further trend is established.
Our AUDJPY forex play is ultimately slightly down however it did touch the 78 levels. We're switching over to a EURUSD long this week.
Forex Play
LONG EURUSD at 1.131
Technically strong buy indication. Up-trend has been confirmed with technicals and these price levels should have strong buying support and can break for heavy upside quickly.
Stock Picks This Week
URRE (Uranium Resources) An energy company with high value playing on the strengths of increasing Uranium prices. URRE owns several valuable project locations putting total assets and price to book at around 0.28x making this an extremely attractive long term hold, with the recent price spikes earlier this month catapulting up to $1.8 a share before settling down to $1.43 on the Friday close (ending up 3.5% that day).
Monday and Tuesday will be critical for establishing investor sentiment here on this energy pick.
Buy recommendation under $1.30
INVT (Inventergy Global) This communications company is on a momentum/volume hot streak, having a reasonable earnings earlier in the week investors saw returning confidence in the long term outlook of this company with agreements and more contracts in the works, in addition to increasing revenues from their patent asset portfolio. With the moderate amount of shares sold short currently we will have strong buying pressure on Monday as shorts are closed.
Buy recommendation under $1.50
Cryptocurrencies
Long NXT 4700
Long DGB 58
Our NXT play had a slight sell off as big players begin to scale out of their NXT positions, our data shows there should be one more big rise in price on NXT as late bloomers try to secure a significant stake of Ardor tokens, we recommend a big buy at these cheaper attractive levels and look to reduce your holdings throughout the next month closer to 5000+ NXT price.
DGB was fairly interesting this last week, with huge market swings and volume, the buy orders and sell orders have been shifting heavily and price ranged from 52 (Absolute bottom we called in last weeks post) per DGB up to 82 per DGB before depressurizing down to 58. We see the 58 levels as extremely attractive and with the new rumors/news of DGB in talks with Blizzard and World of Warcraft we anticipate further growth in addition to the long term growth we have always seen in Digibyte.
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With the stock market nearing record highs we are getting geared up for some intense moves coming soon, we anticipate an increase in volatility as trader euphoria increases nearing higher highs.
Our stock pick last week TRXC drifted slightly down before closing up strongly Friday from 1.32 to 1.45, this increase shows investor confidence over the weekend signifying even more bullish action, we will continue to watch TRXC over this week and it will remain one of our stock picks.
Forex Play
LONG AUDJPY at 77.4
Technically strong buy indication. Although remaining flat last week after touching 78 we see further strengthening here as we get ready for a big move.
Stock Picks This Week
UQM (UQM Technologies) This low debt auto component company has been on our stock picks page for a few weeks now and we want to highlight it even further through our weekly plays.
Trading at about 1.5x book value and having almost no debt makes this one of our star small-caps currently. UQM Technologies focuses on electrical based components for vehicles such as generators, electric motors, and fuel cell compressors which is a rapidly growing commercial and industrial section of the electrical industry right now, the company is positioned well and had their earnings release 10 days ago on August 4th, although earnings were down slightly revenue for the quarter beat last years Q1 and grew by 94%, even with this impressive news share-price hasn't reacted heavily as people speculated on a greater beat, although the steady support in price shows Investors are still interested in the high underlying value of UQM's business.
Buy recommendation under $0.61
TRXC (Transenterix) Showing great promise on last weeks Friday close allows us to continue this pick throughout the week.
Click here to read our article on TRXC from last week.
Buy recommendation under $1.50
Cryptocurrencies
NXT continues to impress and inspire as it continues beating our price estimations. We alerted at 4800 last week and it has sharply swung in both directions over the week before ending at 5200, and currently is popping even higher on increased volume and buy side orders increasing to the 240 BTC levels up from 180 BTC buy orders earlier in the week.
DGB has also had some interesting action and volume increase, staying roughly the same exact price for extended periods of time, we expect price to increase in the short term and long term.
Update: DGB buying support grows from 60 BTC to over 300 BTC, huge increase today up 35% so far. (8/15/16)
Long NXT 5200
Long DGB 52
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ETRM from last week slightly disappointed ending down roughly 9% from our alert, we noticed large manipulation and shorting causing heavy selling pressure shaking investors out, we will keep this one on our radar for now.
We also want to highlight how our long term super stocks are on the right path to our projected returns. Since April when we created this collection of value stocks the equally weighted portfolio is up 8.58% and moving towards our goal of +15% per year.
Forex Play
LONG AUDJPY at 77
Technically strong buy indication. We are still getting alerts for AUDJPY and the data is looking even better, our previous week play was completely flat however bounced sharply off of 76.4 which shows buyers coming in strongly at this price.
Stock Picks This Week
TRXC (Transenterix) Another medical device company working on complete robot surgery systems, involving cameras, robotic arms, and instruments. TRXC had it's first sale of their patented robot system on August 1st, which should bring in considerable future revenue to this stock. Transenterix has seen a sharp increase on volume spiking up to 1.90 before settling back down to the 1.50 levels, this appears to be a bargain price for many investors as the stock walks up in value slowly. This company intrigued us as they traded around $6.00 a share back in April. From a valuation standpoint price to book is under the current price and institutions are taking advantage with holdings increasing over the year up to 41% held by institutional investors.
Buy recommendation under $1.50
Cryptocurrencies
NXT continues to impress as we alerted 4300 last week, NXT currently hovers around 4800 however we touched 5894 during the week, huge gains to be had which we hope you took advantage of.
We are continuing yet again as the snapshot period for Ardor tokens from NXT is bringing in more and more investors and speculators.
LONG NXT at 4800
