Zak’s midweek thoughts

2 mins. to read

Fresh from  my appearance on CNBC the other week, I was invited to go on Bloomberg on Tuesday morning at 6:40 AM. Unfortunately, due to the location of my abode, this meant the taxi picking me up at 5 AM! A somewhat painful experience for someone who is not really a morning person…However, once I got to the Bloomberg HQ, somewhere near Moorgate station, it appeared that the six years that have passed since I last graced the channel simply melted away. Not only was I given a security pass with a 10-year-old photo of my fatter, younger self, but the anchor presenter was also one of the few people who remembered me from years ago. All I can say is that Mark Barton and the team treated me like a God. There is nothing so refreshing for the soul and the ego, as to get a big billing on financial TV, especially when you are as enthusiastic regarding the subject as I still am (and at an unearthly hour!).

Just in case you’re wondering, the stocks I discussed were Vodafone (VOD) as a potential “bottom fish” if it broke the year low at £1.64, HSBC (HSBC) as a roaring buy on the basis that money-laundering, tax avoidance, or even gun running are just not the moral minefield they used to be. The final recommendation was a U.S. company called Zillow (Z), an online estate agent of all things and which I feel could be a buy after a recent revenue miss.

Fresh material from today’s blog comes in the form of dollar /  yen, where I personally would have bet the farm on a buy towards ¥82 a couple of weeks ago, and probably would have bought the farm instead given the dip below ¥80 there has been since… Nevertheless, the cross appears to have bounced off a near-term June trend channel floor just below ¥79 50. What can be said now is that while there is no end of day close back below the ¥79 level we should be looking at progress towards the previously hoped for target of  ¥82 and through 2012 resistance.

As far as the stock picks are concerned, today I offer up AMEC on the bull side and where there has been a rebound off the floor of a rising trend channel from the beginning of June at £10.19. It is in fact yesterday’s price action, toeing an intraday high of £10.33 – which was the floor of the overnight gap up. We await a further rebound towards the area of the 50 day moving average now at £11.05. Hopefully, such a target could be achieved over the next week to 10 days.

As far as Fidessa (FDSA) is concerned, I am looking for a bear trap rebound to set in. This would be achieved on an end of day close today back above the initial October £12.98 intraday low, with the stock given added momentum to the upside by bullish divergence in the RSI window. Ideally, there would be no end of day close back below £12.98 prior to a test of the blue 50 day moving average at £13.93 over the next 3 to 4 weeks. The attraction here is of course that we are relatively close to the notional end of day close stop loss level.

If you’d like to learn more about the technical terminology used in my posts, why not register to receive my unique “Zak Mir’s Top 25 Technical Triggers” e-book on the Trading Manuals page of this site.

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