4 Stocks To Buy And Sell Now

by: David Ristau

By Joey Vazquez, Oxen Group Contributor

We continue our search for the most attractive companies to buy and sell right now. The markets started the day on a slow foot then became volatile after the Fed`s announcement to extend its Operation Twist. The continuation of Operation Twist was expected and leaves the market fairly unchanged. Today, I strive to find attractive companies with strong or weak fundamentals and technicals that will outperform or under-perform the markets. Should you buy or sell these companies?

Starwood Hotels & Resorts Worldwide Inc. (HOT):

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Unknown ObjectStarwood Hotels got off to a very good start this year, but the recent weakness in the markets was able to bring HOT down with it. They had some great announcements today in their Asia Investor Conference as they plan to double China footprint. HOT appears to have bottomed out and is reclaiming a lot of lost territory. Standard & Poor's upgraded HOT on the company's debt reduction plan. S&P now has HOT as a triple-B, with a stable outlook, and that was a good catalyst as well. The Hotels industry has looked solid for most part of the year, and we feel now is a great seasonal time to get into these stocks. We also like Marriott Intl. (NYSE:MAR) on the back of their recent guidance upgrade. With MAR and HOT leading the way, others that may follow are Choice Hotel Intl. (NYSE:CHH) and Red Lion Hotels (NYSE:RLH). HOT recently bounced off one of its support lines at 48.40 and has been headed higher since. IT has retaken its 200 and 20-day MA. HOT MACD and stochastics have turned around and headed higher since its bounce. Its CCI indicator looks poised to enter the +100 are, which would give us another bullish indicator.

Trade Idea: Go long HOT

  • Entry Range: 53.75- 53.50
  • Targets: 54.17, 54.70
  • Stop Loss: 52.56
  • Our Entry: 53.63

PerkinElmer Inc. (NYSE:PKI):

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PerkinElmer has had a fantastic YTD. It got off to a flying start, and the recent weakness in the markets barely hurt the stock. PKI strength caught the eye of Goldman Sachs (NYSE:GS) yesterday as they received an upgrade to Conviction Buy and increased their price target to $34. This upgrade should help propel PKI and help it break through its pivot point. PKI has great support at the 25.33 area as the stock bounced off it a couple times and has since re-taken its 50-day MA. PKI MACD indicator just crossed over its signal line giving yet another bullish indicator. Its CCI indicator is at 83 and should cross into the bullish +100 area with another positive trading session behind. PKI stochastics are also headed higher confirming our bullishness.

Trade Idea: Go long PKI

  • Entry Range: 26.40- 26.27
  • Targets: 26.60, 26.87
  • Stop Loss: 25.81
  • Our Entry: 26.34

Eaton Corp. (NYSE:ETN):

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Barclays (NYSE:BCS) reported on the 18th of June that Class 8 production truck orders will trend lower for the year and sees slower 2013 year over year growth given macro uncertainties. Barclays then lowered estimates on Paccar (NASDAQ:PCAR), Cummins (NYSE:CMI), Eaton and Alison Transmission (NYSE:ALSN). ETN has seen a lot of weakness since the start of March and this recent news will definitely not help out the stock either. Its chart has just formed a death cross, giving us a strong bearish indicator. Its OBV indicator has been in a downwards price channel since the start of April, showing the positive momentum leaving the stock. Its CCI indicator has turned around and looks eager to re-enter the bearish -100 area. ETN just failed to break through a resistance line at 40.24, showing great resistance there.

Trade Idea: Go short ETN

  • Entry Range: 39.60- 39.40
  • Targets: 39.11, 38.71
  • Stop Loss: 40.29
  • Our Entry: 39.50

Cummins Inc. :

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Cummins' price target was lowered over at Credit Suisse (NYSEMKT:CIK) yesterday, giving the stock another black eye along with the Barclay's estimates we already mentioned. CMI has not been able to break through its 20-day MA in its last couple of attempts and it failed again today. We also see a death cross on the verge of being formed on its chart, this by itself is very strong bearish indicator. Its OBV indicator has also been very weak since the beginning of the second quarter and is in a strong downwards price channel. This shows that a lot of selling has taken place in the stock and little buying is occurring. CMI stochastics have turned around and are headed lower, giving us another bearish indicator.

Trade Idea: Go short CMI

  • Entry Range: 96.27- 95.77
  • Targets: 95.05, 94.10
  • Stop Loss: 97.94
  • Our Entry: 96.02

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