Sept 06: IDCC JPM UVXY INTC

InterDigital Inc. (NASDAQ: IDCC) today has cross $34 level with a pretty significant level of volume, closing at $35.67 (up 6.29%), higher than 200-day moving average. Today’s move touches the upper B-band and widen the bands’ distance again after the indicator showing a consolidation. Fundamentally, the Company has a portfolio of patents that might be useful and possible to be acquired by Apple or Samsung.

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J.P. Morgan Chase (NYSE:JPM) experience a huge appreciation today , along with other banking companies, due to ECB movement. I keep mentioning JPM particularly in the industry because it has low PE ratio and healthy revenues. Despite of the huge trading loss early in April, I like the attitude how CEO Jamie Dimon responds to the trading loss with a tone of accepting mistakes and problems existed, instead of blaming others. I am skeptical about Europe’s bond-buying program, but JPM is definitely in my watch list.

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UVXY had been in my portfolio for a long while, not only because the economy is recovering and indexes are doing good, hence the volatility would be small. It is also because the contango relationship in spot and distant futures prices. Today’s action makes UVXY touches the lower B-band again, giving us a sell signal. If you are expecting volatility to get smaller in the future, short UVXY, TVIX, VXX or similar ETN or Long XIV. One reason I like shorting VIX instead of Long a fund shorting the underlying futures is that there would be less short squeeze effect on the particular ETN, making it easier to predict the outcome.

For more, please read “So You Want to Trade Volatility: Understanding contango”at SeekingAlpha.com

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Intel Corp. (NASDAQ: INTC)

Today’s action on Intel shows a rebounce from the lower band of the falling channel since May. There is still a distance until reaching the upper band. With a rising MACD and increasing volume. I believe INTC would be a good stock to hold.