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The Oxen Group is a financial analysis and investment opportunities newsletter-based website run by financial analyst David Ristau and features several other traders. Ristau and team have been working in stocks for several years and has developed a knack for identifying winning short-term and... More
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  • Buy up Direxion's ERX on Oil Movement Tuesday

    The Oxen Group recommends a purchase of Direxion's Oil and Energy Daily Bull ETF (ERX) for Monday. The oil market may be ready to make some positive gains on Monday, which should light a fire under this ETF. Oil is looking slightly bullish on Tuesday to begin with because of a technical correction that is needed. The market has fallen over 10% in a week, and prices have moved down too low, too fast. A lot of sellers have sold and are becoming buyers again. Gerard Rigby of Fuel First Consulting believes oil is ready to move back to $70 per barrel as the economy is in the same place and there really is no reason for it to move down any further. He believes the profit taking and correction is done. At least for tomorrow, this makes sense. Tomorrow, there is really no large economic news once again and no primary earnings, which should send the market into a similar seesaw it was in today. This is a perfect opportunity for a purely technical correction. More bad news from Nigeria's militant operations, analysts belief crude inventories are falling again, and the speculation on the EIA data on Wednesday all could be catalysts to further help drive up crude prices slightly. The price of oil gained in Asia, which is a telling sign that a technical correction should be on the way. The futures are slightly negative, but with no positive news in the after hours, this seems logical. ERX will benefit greatly from any movement positively in oil prices. The stock has dropped over 10% in just two trading days, and it looks poised for a pop. Get in early and ride a nice 3-4% gain.

    Entry: Recommend entering 10-25 minutes into session.
    Exit: Recommend exiting on 2-4% increase from buy price.
    Resistance: Upper at 28

    No positions


     
    Tags: ERX, ERY, DIG, USO, oil, crude oil
    Jul 07 1:54 AM | Link | Comment!
  • Jackson Hewitt Ready to Move on H&R Block's Positive News

    On Tuesday, The Oxen Group likes the prospects for Jackson Hewitt Tax Service Inc. (JTX). The company will benefit from the extremely bullish news that came from H&R Block in after hours as they beat earnings estimates with a positive earnings report. The company reported better than expected profits, earnings over $700 million while last year the company only reported earnings of $543 million. The company beat Wall St.'s estimates, as well, earnings an EPS of 2.09, with The Oxen Group estimating an EPS of 2.06. The company saw better earnings with higher prices and more online processings. They did see less overall reports, but it appears that the tax services companies may fair better than expected. The company was not as optimistic as investors were as they sent the company up over 5% in after hours. The earnings rising 20% and Wall St. expectations will help JTX, tomorrow, as the company has a very similar business to H&R Block. The market may make a move again, tomorrow. The futures are bullish currently, reflecting bullish news from Ford in after hours, as well as, expectations that consumer spending may reveal more positive results about the economy. If the market is bullish along with the HRB news, JTX will have a great day. The technicals, further, help the case for this stock. It is currently in an uptrend on stochastics, meaning more buyers are entering the stock than sellers. Further, the stock has lots of upper room on bollinger bands. Watch for a pop and buy in on a pullback.

    Entry: Recommended entering in first 10-25 minutes.

    Exit: Exit on 2-4% increase from buy in.

     

    Disclosure: No positions

     
    Jun 30 2:02 AM | Link | Comment!
  • Viacom Looks Ready to Move on Monday - Transformers News

    On Monday, to start the week, Viacom Inc.'s Class B (VIA-B) stock looks ready for a nice move. The stock should benefit from some fundamental and technical analysis. The market is in a sideways trend, currently, waiting for the Q2 earnings to be released to see where the market is at, and the market is no longer able to move on just about anything. Therefore, fundamental news will really make it for this market. Viacom, therefore, will benefit from the bullish news coming out from "Transformers: Revenge of the Fallen" The movie has been a box office smash, which was released by Paramount Pictures, a subsidiary of Viacom Inc. Transformers made $112 million this past weekend, winning the box office, becoming the top grossing movie thus far this year in the first weekend. Most analysts and studios were not expecting as outstanding results, and the movie is falling just short of "Dark Knight" last year. In just five days, Transformers II did 2/3 the total earnings of Transformers I, and it performed well besides weak reviews. The next closest movie, "The Proposal" only accrued $18.5 million. Technically, this news should send a shot into Viacom. The stock has been oversold, near its lower bollinger band, and it has been trending up on fast stochastics, meaning there are a lot of potential buyers ready to enter the stock. Monday's market is not looking bullish or bearish, with little fundamental news on the horizon and nothing too important as far as earnings. Asia is mirroring an expected sideways market that should play out in the USA. The last bit of positive news would be that this is the July 4th week, and this week tends to be bullish. Wait for a pullback on VIA.

    Disclosure: No Positions

    Entry: Enter 15-30 minutes into sesion

    Exit: 2-4% increase

    Resistance: Upper -25.50

     
    Jun 29 2:06 AM | Link | Comment!
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