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InterDigital Inc. (NASDAQ: IDCC) has found support from its 200-day moving average. I believe the recent drop is normal considering the massive runs earlier in Aug and June. Although MACD is negative, Slow STO is near to reach oversold area. With a higher-than-14% short ratio, I believe this stock is a good candidate for speculate. Any good news would trigger short squeeze, making a huge run similar those IDCC previously had.

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Sirius XM Radio Inc. (NASDAQ: SIRI), I am confidence in this stock due to its low Earning ratio and other multiples comparing with its competitors. Technical-wise, as long as SIRI is trading above the middle of the B.Band, I keep my bullish in this Company with MACD, On Balance Volume and moving averages raising.

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Groupon Inc. (NASDAQ: GRPN) has been in my watch list for a while when the saucer bottom is forming early this month. With the formation coming close to an end, I am still bullish to this stock. For a safe play, I believe GRPN, would reach $6 in a short future. However, it is arguable whether it will fill the gap. Bottom line is, I expect a pull back after GRPN reaching $6 and partial or all holdings should be sold and see how the stock performs.

Extracted from http://www.dailyfx.com/calendar/

Date	Time	Currency	Event	Importance	Actual	Forecast	Previous	Notes
Tue Sep 18	12:30		USD Current Account Balance (2Q)	Medium	-$117.4B	-$125.0B	-$133.6B
	13:00		USD Net Long-term TIC Flows (JUL)	Medium	$67.8B	$27.5B	$9.3B
	14:00		USD NAHB Housing Market Index (SEP)	Medium	40	38	37
Wed Sep 19	12:30		USD Housing Starts (AUG)	Medium	750K	767K	733K
	12:30		USD Building Permits (AUG)	Medium	803K	795K	811K
	14:00		USD Existing Home Sales (AUG)	Medium	4.82M	4.56M	4.47M
Thu Sep 20	12:30		USD Initial Jobless Claims (SEP 15)	Medium	382K	375K	385K
	12:58		USD Markit US PMI Preliminary (SEP)	Medium	51.5	51.5
	14:00		USD Philadelphia Fed. (SEP)	Medium	-1.9	-4.5	-7.1

The Goods of Today:

• Major Indexes are at highest level since December 2007, back to pre-recession level
• ADP says US Company added 201,000 workers in August
• US ISM Non-Manufacturing index 53.7 vs 52.5 expected.

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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.

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Intel Corp. (NASDAQ: INTC)

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 3D System Corp. (NYSE: DDD) is a provider for 3D content-to-print technology. The stock jumped almost 10%, made a new 52w high and closed very close to the high with a great volume on Friday. 50-Day MA has been a very good track of the stock prices since the bullish MA crossover in late Feb with very little breakout of the MA trendline. With the MACD just crossed to +ve area and Slow STO making higher highs and higher lows. I think DDD is a very hot stock to put on your radar. I think the long term trend is still intact and does not seem to reverse any time soon.

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Stratasys, Inc. (NASDAQ: SSYS) is a company doing similar 3D printing business as NYSE:DDD I mentioned above. MACD in positive level with bullish STO divergence. Similar to DDD, 50-day MA seems to show the price trend nicely and signal oversold area for SSYS. Both 50 and 200-day MA is trending upwards and although the stock has gained almost 9% on Friday, it still has a little bit trip to go until it reaches the upper band of the channel I have drawn. For comparison, SSYS has higher possible return for medium-to-short term trades (below 2-3 months holding). But DDD seems to be less volatile and suitable for longer term investment

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The Good:
1) ECB chief Mario Draghi says willing to do whatever it takes and assures that it will be enough for saving the Euro.
2) Initial Jobless Claim declined 35,000 to 353,000.
3)Durable goods orders were up 1.6%
4) Earning reports have continued to beat expectations (except internet companies)
5) Zillow’s home value index rose 0.2% compared with 2011 Q2
6) Michigan Sentiment for July was slightly increased to 72.3

The Bad:
1) 2012 Q2 GDP report, 1.5% annualized growth, continuing a weakening and sluggish pattern, although beating estimate. It is still a bad news.

Generally, I am bullish to the market now. In the future, I will provide more on the bad size.

Earning Reports this week: 
Facebook’s revenue growth shrank for at least the fifth consecutive quarter.
ZNGA down 37% as revenue growth slows and reported net loss, bringing questions on the sustainability of its business model.
Amazon reported a 97% drop in 2Q profit to $7 million although revenue rose 30%.

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It has been a red day for JPM, down 1.4% and the gap after JPM Q2 financials announced has been filled, which is not a good sign in technically analysis. However, considering there is a short term uptrend following the bottom generated by London Whale trading loss and a neutral MACD and RSI, I don’t think there is any rush in selling the stock now, unless it breaks or trend or below the recent $33.5 support. If you are not currently holding JPM, buying breakout at somewhere above $37 would be a safer play.

Okay. Here is the bad picture. 50MA crossed 200MA from above is a golden sell signal in double crossover method.

Disclaimer : This is not intended to be investment advisory, therefore, you should not make investment decisions solely on this blog’s commentary without conducting your own due diligence.

Thanks for visiting Johnson Investor Blog.

KFC

Conference Board Leading Economic Index (LEI) 
Announcement: Last business of each month, reporting previous month data
It consists of ten leading indicators which can forecast the coming 3-6 months economy.

The ten components of The Conference Board Leading Economic Index® for the U.S. include:
1. Average weekly hours, manufacturing
2. Average weekly initial claims for unemployment insurance
3. Manufacturers’ new orders, consumer goods and materials
4. ISM Index of New Orders
5. Manufacturers’ new orders, nondefense capital goods excluding aircraft orders
6. Building permits, new private housing units
7. Stock prices, S&P500
8. Leading Credit Index™
9. Interest rate spread, 10-year Treasury bonds less federal funds
10. Average consumer expectations for business conditions from Michigan Consumer Expectation

Diffusion index is the percentage of component index advancing.

When LEI has fallen for more than 3 months, investors should increase proportion of U.S. bonds

Law of 3-D: Duration, Diffusion, Depth
If LEI rises above 1-2% (depth) for longer than 6 months (duration) contributed by more than half of the component indexes (diffusion), a bottoming should be formed and economic growth should pick up in the coming months

Because stock markets tells us economic prosperity around 6 months in advance and leading indicator forecasts the coming 3-6 months. We can tell stock market’s top and bottom by reading LEI.

OECD composite leading indicators (CLIs) and Business Tendency Surveys
Announcement: the middle Monday of each month, reporting data of 2 months prior
It consists of 224 indicators from 29 countries such as the U.S., Germany, France, Japan and other developed countries, taking 5-10 most important indexes from each countries.
OECD member countries’ GDP constitutes two third (2/3) of the world’s GDP.
Above 100: Economies are growing or in recovery period
Below 100: Economies are slowing down or in recession

OECD Business Tendency Surveys shows OECD member-country-corporate confidence and expectation on future economies
OECD Consumer Opinion Surveys: similar to above

OECD CLIs has been highly accurate in predicting a top or bottom when the index turns around.

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