Trade Ideas: KDN

Markets held up well after avoiding the 'sell the news' effect following the Democrats sweep. Wednesday's gains came on higher volume for many markets; the third such day in a row. The Trade Ideas scan was not so buoyant; 8 picks covered a time span of 29 minutes, a very different story to the 3-4 minute buying of last week.

No one pick dominated; JNC, EWZ, DVN and XLE managed 25-30 appearances by the end-of-day. However, the pick I have gone for is Kaydon Corp (KDN).

Kaydon is working through a 3-month base, on a small bullish flag following from a similar consolidation in late September. The larger base projects a target of $54. One can use the bull flag lows as a stop once resistance of this flag is breached to the upside. The 1.2% yield is an added bonus and covered calls can be sold during overbought market conditions to generate additional income.

Kaydon Corporation engages in the design and manufacture of custom engineered products primarily in the United States and Germany. It offers friction and motion control products, such as anti-friction bearings, split roller bearings, specialty balls, and retaining devices to medical, aerospace, defense, security, electronic, material handling, construction, and other industrial applications. The company also provides velocity control products, including industrial shock absorbers, safety shock absorbers, velocity controls, gas springs, and rotary dampers used in specialized robotics, material handling, machine tool, medical, amusement, and other industrial applications. In addition, it offers sealing products, such as engine rings, sealing rings, and shaft seals for industrial, aerospace, and defense applications, as well as provides filter elements, and liquid and gas-phase filtration systems; metal alloys; machine tool components; presses; dies; and benders used in various industrial applications.




If you would like to try a full version of the Trade-Ideas software, follow this link for a free 7-day trial.


Popular posts from this blog

S&P "Bull Trap"?

Image
I thought there was sufficient evidence to argue against a "bull trap" in the S&P, but it would appear the market wasn't interested in such thoughts and sellers were quick to reverse the initial push above 4,200.  Adding to the pain were new 'sell' triggers in MACD and On-Balance-Volume, although the former occurred above the 'bullish' zero line, making it a weak signal. Selling volume ranked as distribution as selling momentum picked up speed.  The index is also underperforming relative to the Russell 2000. 
Read more

"Black Candlesticks" are a concern for the S&P and Nasdaq

Image
A bright start for bulls on the back of positive $NVDA earnings wasn't enough to generate a day of meaningful gains.  However, it did help stall the losses of the last couple of days. The Nasdaq was the biggest beneficiary of today's action, but not enough to see an end-of-day finish that cleared last week's swing high, nor delivery of a large white candlestick, despite the morning breakout gap.  Technicals are net bullish and relative performance against the S&P has become consistently stronger since the start of May.  While today's candlestick I would view as typically 'bearish', today's volume ranked as confirmed accumulation (bullish). Overall, I would be looking for higher prices from here. 
Read more

Round 2 for the bearish "black" candlestick in S&P and Nasdaq

Image
The Nasdaq started brightly but ended up closing below its open price, but above yesterday's close. The S&P did something similar, although the intraday range is narrower. These two setups are somewhat complicated by the new 'buy' triggers in On-Balance-Volume for both the Nasdaq and S&P. And the new MACD trigger 'buy' for the S&P. Price action is key, so I would expect the candlestick to trump the technical picture; watch for lower prices tomorrow.
Read more

Archive

Show more