4 Stocks To Buy And Sell Now

by: David Ristau

By Joey Vazquez

We continue our search for the most attractive companies to buy and sell right now. The markets rallied today in renewed hope of further moves next week by the Fed to bolster the economy; however, we have been trading with a neural approach to these violent swings in the market. Today, I strive to find attractive companies with strong or weak fundamentals and technicals that will outperform or underperform the markets. Should you buy or sell these companies?

CMS Energy Corp. (NYSE:CMS):

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Unknown ObjectCMS Energy has performed exceptionally well in 2012 and has really taken off since mid-April. The utilities sector continues to perform great and we especially like companies like Wisconsin Energy (NYSE:WEC), Integrys Energy Group (NYSE:TEG), SCANA Corporation (NYSE:SCG) and CMS. During tough times, one of the best places to invest is utilities because they stay strong while the market drops, and they offer nice dividends. While most companies really struggled in May, CMS was the complete opposite hitting new 52-week highs in every other trading session. CMS has broken through a lot of key resistance lines and will now try to break through one more at the 23.69 area. Its CCI indicator has re-entered the 100+ area, showing us it should have no problem breaking through the previously stated resistance line. CMS OBV indicator is in a very strong upwards channel showing a lot of positive momentum flowing in the stock. Its stochastics have turned up and will look to head higher as well.

Trade Idea: Go long CMS

Entry Range: 23.55- 68

Targets: 23.85, 24.09

Stop Loss: 23.14

Our Entry: 23.62

Quanta Services Inc. (NYSE:PWR):

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Quanta Services was facing some recent weakness but has since retaken key levels. Industrial goods companies have not been extremely strong due to cyclical weakness, but the company has bottomed with the rest of the market. This company will continue to show upside if less "risk-off" trading occurs. FBR Capital (FBRSX) upgraded PWR to outperform early last month and they also raised their price target to $30. If Quanta can stay above its pivot point today it will look to be on the breakout. PWR bounced of its support line at the $21 are and has since broken through its 50 day MA and pivot point. These levels will now be important support lines for PWR. PWR MACD indicator just crossed over its signal line, giving us a bullish indicator. Its CCI indicator is on the verge of going into the +100 area, telling us the stock is on its way to a new bullish trend. PWR stochastics have just turned up and are headed higher, confirming our bullishness.

Trade Idea: Go long PWR

Entry Range: 22.75- 22.87

Targets: 23.04, 23.26

Stop Loss: 22.35

Our Entry: 22.81

EMC Corp. (EMC):

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EMC has been on a break down since the beginning of this year's second quarter, losing over 20% in the short span of 10 weeks. Cloud network is a crowded space, and we continue to like shorting companies in that sector that are overvalued. The company is looking better with its recent drop in value, but it still has a 20 PE and could see a lot more correcting. It may not change its current trend until earnings come out in late July. EMC recently tried to rally but the support from its 200-day and 20-day MA proved to be very strong resistance. EMC received an upgrade from Cantor Fitzgerald on the 11th of this month and not even an upgrade was enough to propel its stock over its 20 or 200-day MA. EMC OBV indicator is in a very strong down trend showing all the buyers and positive momentum leaving the stock. Its CCI indicator looks poised to continue its run into the -100 once again and its stochastics suggest this as well as they have turned down and are headed lower also.

Trade Idea: Go short EMC

Entry Range: 23.97- 23.85

Targets: 23.67, 23.43

Stop Loss: 24.38

Our Entry: 23.91

Xylem Inc. (NYSE:XYL):

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Xylem continues to weaken since their second quarter miss. The company is in a terrible downtrend, and its losing investors from its IPO earlier this year. XYL, recently, had a nice rally and almost appeared to be breaking out but the resistance from its top BB and 50-day MA proved to be superior. On the bounce back down, XYL has broken down through its 200-day MA and middle price channel of its BB, both of which were key support lines and are now going to be strong resistance levels. We also see a death cross forming on XYL chart and its stochastics are suggestion it will finish forming as they have turned and are headed lower. Its CCI indicator is also headed lower and will look to enter the bearish -100 area in the next couple of trading sessions, confirming our bearishness.

Trade Idea: Go short XYL

Entry Range: 25.07- 24.95

Targets: 24.75, 24.50

Stop Loss: 25.50

Our Entry: 25.00


I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.