Fast Facts: IDTI

• IDTI is a semi company
• They make chips for cloud data centers, 4G networks and power mgmt for computers
• The biz is split 60/40 communications/computing
• 70% of 2013 sales were to Asian
• Flat Y/Y sales growth, but EPS is growing about 20% over the last two years
• OCF doubled Y/Y
• They bought back 2M shares in Q1
• 30% of revenues are spent on R&D

Time to buy silver?

My pal Jordan aka @thetechnicalroom, brought up some great points about seasonality in silver the other day.  At the end of Junes the historical seasonality pattern bottoms out and significantly outperforms stocks in Q3.

That spurred me to put together this post with the compelling arguments for long silver here and now.  You can check it out here:  http://stks.co/r0Rvz

Trade 'em well!

Sentiment stretched

I like to track the equity only put call ratio to determine how bullish the market is on individual stocks relative to the moves in the S&P 500.

Of course the put call ratios have their weaknesses.  We don't know if the options were sold, bought, opened, closed and we surely do not know the reasoning for such moves.  What we do know is when greed takes over, most people tend to press the buy button.

Clearly we're at a level that has produced short term price highs the last three times it's fired a signal.

While we have this hint, maybe we're just late enough in the bull market that sentiment will continue to stretch out.  Also, you don't want to get out of the market unless the setups dry up and your stops are hit because a ton of crazy moves happen in late stage bull markets.

Trade 'em well!

An oil spec lining up on three charting methods

With Crude oil breaking a quarter year consolidation, it's time to look for lower quality energy names that benefit from higher energy prices.  First lets look at the breakout.  The pattern measures to last fall's high near 112.  

MPO is an oil co that came public just before a 20% drop in the XLE in 2012.  They don't have assets in any of the hot shale plays, so nobody really cares about it.  What they do have is an awesome chart that's setting up for an explosive move higher to 9 and possibly 17.

We can see after the wedge breakout it's started to push through the cloud.  Now it's trying to break free of the major cloud resistance.

If we look on the Point and Figure chart we see this 6.50/7 level is also huge for it.  A break of the red line would signal a change in trend to higher.

Obviously there isn't a clear risk level to trade against nearby, but in this case, the ~6.70 area is the level of risk after it breaks higher.  

Trade 'em well!

Disclosure:  I'm long, looking to hold throughout the summer.

Daily Wrap

• Daily recap:  Materials and specifically energy led today as chaos in Iraq is increasing.  It's also worth noting Utilities are continuing to weaken, which is a good sign for stocks.

chart via finviz.com

• Breakout of the day:  X and AKS broke out of daily head and shoulders bottoms.  Not surprisingly, the two charts are nearly identical(as seen in the correlation pane on the bottom).  

• Cool read of the day:  HP is working on a project to increase computing power 6x.  Is this a reason to go buy HPQ right now?  I don't think so, but it's a great reminder that things will always keep changing in tech and open new possibilities we've never thought were possible.