COMPANY INVEST CURRENT TAKE: QUANTITATIVE EASING AND THE STOCK MARKET

In early November, 2010 the Federal Reserve announced it would embark on a second round of Quantitative Easing (QE).  In simplistic terms, with short term interest rates already at zero, the Fed was running out of bullets.  The market had rebounded nicely but unemployment was close to 10% and the consumer just wasn’t spending.

For those who don’t know, QE is essentially monetizing our own debt through the expansion of the US money supply and subsequent purchase of US Treasury notes with that phantom money.  The goal was to keep mortgage rates low, spur spending, goose the stock market, and move the economic “recovery” out of the doldrums.

Well, it certainly has accomplished one goal, consider the market goosed.  Outside of an initial selloff in November right when the program began, there hasn’t been a single sustained market correction since.  All major indices are at multi-year highs and even on days when it seems the market will surely drop, it doesn’t.  You see, the Government buys those treasury bonds on the open market from Goldman Sachs, JP Morgan and the like — and paying them huge commissions.  These purchases have averaged $6 to $8 billion each and every day.  That money is then funneled into stocks, because the market can’t go down right now, right?

To make a long story short, there are some stocks that have pulled back even during QE.  We’ve been able to grab some of them recently (SSRI, JRCC).  When you can find a stock that has pulled back in this environment with the right setup, strike while the iron is hot.  QE2 is set to end in June, so the way we look at it, there is anywhere from 5-13 weeks of rally time left.  Today’s Company Invest pick, Sierra Wireless, just may be one to ride the remainder of the duration.

SWIR PROFILE

Sierra Wireless (SWIR) provides wireless solutions for mobile commuting and machine to machine markets.  The company’s products and solutions connect people, their mobile computers, and fixed terminals to wireless voice and mobile broadband networks. Its mobile computing products are used by businesses, consumers, and government organizations to enable high speed wireless access to a range of applications

FUNDAMENTAL TIDBITS

Price to Sales Ratio: 0.55 (a wonderful value)

• Forward PE: 11.88 (Also good)
• Cash: 111.85 Mill.
• Debt: 587 K

COMPANY INVEST TECHNICAL TAKE

Today’s chart is a weekly chart which is used for longer term trades or investments.  Each candle represents one week.  We get a good, long term snapshot here.

The 3 Week Relative Strength Index (RSI) has bottomed out in the midst of an uptrend.  Look at the 1st red circle on the chart (at the top left), which was another recent time this happened. There was a 5-6 week rally that followed.

The weekly candlestick price chart has a few interesting points to note.  First, the 10 day EMA is greater than the 20 day EMA, and both are above the 50 day EMA.  This is called a bullish alignment.  although these averages have started to curl over, it would take a great selloff to dismantle this alignment.

Next, look at the trend line (blue line) going all the way back to the March, 2009 lows.  What this shows is although we may be just a bit early on a trade here (the price could still go down some more), there is SOLID support at the $10 range.  Expect a bounce and resumption of the uptrend between now and $10.

Finally, the HUGE selling bar of two weeks ago could be considered a capitulation of sorts.  Sellers dumped, and dumped fast, but that momentum appears to have waned.

Next, we look at the MACD indicator.  Although we have a bearish cross on the MACD line and signal line, more than likely after tomorrow’s close, the histogram (blue bars) will put in a higher low.  This is known as a PpP reversal, and is an early signal of directional change.

Last, we look at the slow stochastic momentum indicator.  At 32 and dropping, there is still some downward pressure here.  However, a bullish divergence could be setting up with a higher low forming on the stochastic line.  Also, the last time the stochastic line was at the 20 level (oversold), SWIR was selling for less than $7.  We’ll most certainly get a higher low on the price chart, probably $10 or greater.

COMPANY INVEST BOTTOM LINE:

We’re a bit early, but some signals indicate dipping our toe in the water here is a good idea.  Scale in with just 50 or 100 shares and set your stop at $9.87 or so (right below trendline support).  If it reverses, and runs through the end of QE in June, we could be looking at a $17-$18 target.

We have the luxury of being able to trade and invest in many foreign stocks.  China has been BOOMING, and particularly in the Shenyang area: an industrial mecca.  As manufacturing demand continues to increase, so does the need for power.  Today’s Company Invest pick, A-Power Energy Systems, provides onsite distributed power generation systems and micro power grids for industrial companies Shenyang, People’s Republic of China.

COMPANY PROFILE:

A-Power designs, constructs, installs, and tests distributed power generation and micro power grids as stand-alone facilities for various customers in the steel, chemical, ethanol, cement, and food industries. The company also offers automatic control systems to monitor the performance of equipment in the system, including the boiler, turbine, generator, grid supply, and demand and distribution, as well as space and water heating functions. In addition, it manufactures and sells wind turbines.

FUNDAMENTAL TIDBITS:

• A-Power features a LOW price to sales ratio of 0.83, making it a value play.
• Share price of under $6 makes it an affordable trade
• High Beta of 2.95 means profitable, fast trades when technicals flash buy signals
• 16.5% short interest means short covering could elicit a nice gain fast!

COMPANY INVEST TECHNICAL ANALYSIS

Once again, we find most of the US stock market in an overbought state.  Not the case with APWR.  Starting at the top of the chart is the ADX momentum indicator.  The indicator got a bullish +DI cross on 2/13/11 which has since been confirmed.  Further, the ADX line which measures trend strength looks ripe for a nice run after bottoming out at the recent 2011 selloff.

Looking at the candlestick daily price chart, APWR had a 3/10 Exponential Moving Average cross (GOLDEN CROSS) yesterday, 2/14/11 that was confirmed with a higher close today.  This is extremely bullish.  Look at the chart and the excellent signals it gives on the 3/10 EMA cross.

The MACD is a thing of beauty.  A POWERFUL bullish divergence is playing out.  Look at the WAY higher low that has been formed with the MACD line (black).  Also, look for a MACD/signal line bullish cross possibly tomorrow.  In addition, the MACD is approaching the zero line, which is also quite bullish.

Finally we look at the slow stochastic oscillator.  This oscillator does a good job indicating overbought/oversold conditions.  A healthy reading of 45 shows APWR has positive momentum and there is plenty of juice left in it.  In addition, the weekly stochastic is low and just got a bullish cross.  Company Invest thinks this could also be a great stock to hold even for several months.

Company Invest Bottom Line: This is a great safe entry point for a trade since APWR already has some positive momentum.  Also, the stock is in a wonderful position to place a stop right below the 50 day moving average at around 5.55.

COMPANY INVEST IS BACK!

After a 10 day hiatus we’re back to our chart analysis at Company Invest.  It was time for a breather, but at the same time it’s been a tough stretch to try and pick trades when we are teetering at a pivot point in the market here.   Just when it looks like a sure correction is in the works, boom, a rally wipes it out.  There will be a deep correction in 2011 for sure, when is the only question.   One thing was for sure.  Once the DOW got above 11,700, you knew it was going to run to 12,000 which it hit today.  Netflix had great earnings numbers after the bell, while Starbucks disappointed.  What will tomorrow bring?

THERE IS A SILVER LINING

We shall see, however, as some of my fellow traders at Facebook’s “Trader Pro” know, I’ve been anxiously awaiting an entry into Canadian silver miner, Silver Standard Resources, (SSRI).  If you would have entered SSRI last July and held to the end of the year, you would have had over a 90% return!  But how do you chase a stock after a 90% run?  Now could be the perfect opportunity after a nice 28% correction. With Ben and the Fed cranking the money printing press every day, and the U.S. debt ceiling about to be eclipsed, and bankrupt state governments, precious metals will shine again, and silver has shined brighter than gold in the past year.  We at Company Invest look for that trend to continue in 2011.

Looking at the chart notice the Slow Stochastic momentum indicator.  It has sunk to oversold levels for a third time now, has just got a bullish cross and is the stochastic line is on the verge of breaking it’s resistance at the 21 level.  If it does that with some volume, look for the stochastic to go all the way to 80 on this trip, bringing SSRI along for a nice ride.

On the pricing chart, we had a hammer reversal, with a follow through today, and more importantly, a close above the 5 day SMA, sparking a buy signal. We have SOLID support at the 200 day moving average (20.94), so that’s a great place to put a stop below on a trade if you are thinking of entering tomorrow as I am.

The MACD has produced a PpP bullish reversal on the histogram bars, with a confirming close today above the 1/25/11 high.  Another buy signal.

Finally, we look at the On Balance Volume (OBV).  Look at what happened the last time the OBV bottomed out and hooked back up. Nice trades ensued both times. If the OBV can break above its current level with a gap and go run tomorrow, we could be looking at a very, very nice trade here.

Company Invest Bottom Line: Grab it tomorrow and put a stop below the 200 day MA.  A gap down would actually make for a nice entry.  I like this stock very much.

Good luck to all.

Today’s Company Invest analysis is a very affordable stock you can by for under $3.50.  It’s Denison Mines Corp (DNN). Denison Mines Corp. engages in the exploration, development, mining, and milling of uranium primarily in the United States and Canada. It also produces vanadium as a co-product from its mines located in Colorado and Utah; and recycles uranium-bearing waste materials, as well as gold.

FUNDAMENTAL TIDBITS:

• Quarterly Revenue Growth (YOY): 212.90%!
• Total Cash: 33.11 Million
• Total Debt: 331.K

Phenonmenal quarterly growth and a good balance sheet help to make DNN a buy!

COMPANY INVEST TECHNICAL ANALYSIS:

“A” is the slow stochastics indicator.  After some healthy profit taking, the stochastic is on the upswing again, having had a bullish cross and piercing the 50 line.  Stocks are considered oversold when the are greater than 80, so this run still has some juice in it.

“B” is the daily candlestick price chart of DNN.  The chart pattern happening over the past 4 months appears to be a broadening formation, which would put our upside target north of $4.50, which would be a 34% gain!  There could be some nice upside potential here for sure.

“C” are the daily volume bars.  As you can see, over the past 3 days as a new rally has ensued, the volume has increased each day, which is very bullish.  Volume is one of the most valuable indicators there is because it measures conviction.

“D” is the MACD.  The MACD line has curled up and is on the verge off a bullish cross, while the histogram bars have completed (and confirmed today) a bullish PpP formation.  This is a powerful reversal signal.

Finally, “E” is the ADX momentum indicator.  It looks as if the ADX line (black) has bottomed out at the same time the pullback petered out.  Additionally, yesterday we got a bullish +DI (green line) cross which was confirmed today with a close above yesterday’s high point.

Company Invest Bottom Line: DNN looks like a great trade and is affordable for anyone. Grab it soon and put a stop in around $2.65-$2.70.

Today’s Company Invest pick is dry-shipper, Excel Maritime (Symbol EXM). Dry shippers should benefit from Asian economies booming since the dry shipping industry provides vessels to transport dry goods such as iron ore, coal and grain, steel products, fertilizers, cement, bauxite, and sugar and scrap metal. As of March 10, 2010, it owned and operated a fleet of 47 vessels comprising 5 Capesize, 14 Kamsarmax, 21 Panamax, 2 Supramax, and 5 Handymax vessels with a total carrying capacity of approximately 3.9 million deadweight tonnage. The company was founded in 1988 and is based in Athens, Greece.

EXM also fits our other criteria for a Company Invest pick: it has just experienced a sizeable pullback. Remember, we’re always looking for stocks on sale; Trying to chase stocks like AAPL, NFLX and GLD is a futile effort right now. Also, at $5.55 a share, it’s affordable for any investor.

Looking at the daily chart, “A” is our ever-popular 3-day Relative Strength Index (RSI). Look at how oversold it is, and it looks like it is headed back to the 30 level, which is bullish.

“B“is the candlestick pricing chart. Today’s candle opened lower than yesterday’s close, only to hit solid support at the $5.50 area, bounce right off of it and rally into the close. Today’s symbol is a “spinning top” which is a sign of investor indecision. This is significant after nearly a two-week correction. We could be looking at a bottom here.

Look at the recent volume bars (“C“). Do you notice even during the correction, there seems to be more buyers (gray bars) than sellers (red bars)? Volume has been higher on positive days, which is bullish.

Today we also had a bullish PpP pattern (“D“) on the MACD histogram; a sign of a possible reversal. This just means we had a shallower blue bar today, reversing the recent trend.

Finally, the slow stochastic “E” got a bullish cross today.

Company Invest Bottom Line: Take a shot at EXM here with 100 shares and put a stop in around $4.97 . Your risk will only be a mere $50, but if the trade starts going your direction, pile on the shares and  and you could ride it up above $7 for a nice 40% gain!  Risk to reward is on your side on this one!

TAKE ADVANTAGE OF ALTERNATIVE ENERGY PLAYS

The boom in alternative energy stocks has given rise to a boon in alternative energy ETFs. More than a half-dozen funds launched in the past few years, and more are on the way.

The newest wrinkle is funds that focus on specific technologies. Today’s Company Invest pick is “TAN,” an ETF that provides access to the solar energy market.   This fund offers exposure to the global solar energy market and a very inexpensive expense ratio of 0.65%.

We are always looking for pullback stocks to buy at Company Invest and TAN has experienced quite a correction here recently.  It is always better to buy stocks or ETFs when they are on sale, instead of grabbing them at the top of rallies.

IS “TAN” A BUY?  COMPANY INVEST TECHNICAL TAKE

The chart looks very favorable for a winning trade, or even a longer term investment right now in TAN.

“A” is the 7-day Relative Strength Index (RSI), a measure of a stock or ETF’s strength against its recent pricing.  The RSI is giving two buy signals: One it is sitting in oversold territory (20.88) that it hasn’t been in since the end of August.  The last time the RSI was this low, TAN gained 36%!   Also, the current RSI has a bullish divergence (higher low), while at the same time the price is making lower lows.  This is a powerful foreshadowing of a reversal.

“B” is the candlestick pricing chart of TAN.  It has corrected from $9 to the $7 range and a higher low (compared to the August low) looks to be setting up.  Today’s candlestick was a spinning top, which indicates indecision, and more importantly the selling occurred on very light volume.

“C” is the recent selling bars as TAN corrected.  Look at the massive selling peak that took place last week with those huge red selling bars.  Now contrast that with this week’s selling volume.  This tells us the selling may be over.

“D” is the MACD histogram, a wonderful predictor of momentum change.  There is a bullish divergence between the histogram bars and the price.  If TAN can get over $7.50 it will be extremely bullish, as that would confirm the histogram’s directional change.

“E” is the slow stochastic momentum indicator.  Yet another bullish divergence is setting up here.

Company Invest Bottom Line: Grab 100 shares here and put a stop at $6.77.  That way if TAN breaks the August lows, you are safely out.

If you just getting started with online trading and need a discount broker, consider Tradeking.  You can click their ad at the top of the page to fill out a quick and easy application, or, if you want to switch from a high cost broker to enjoy $4.95 a trade, .

It’s been a crazy week on Wall Street.  The move has been mostly down with the exception of yesterday’s tremendous rally because of the GM IPO and a better than expected economic report (Philadelphia Manufacturing).  But all week the retail sector has been strong, and today’s Company Invest pick, Lowe’s (LOW) in particular looks poised for a big rally.

COMPANY INVEST TECHNICAL ANALYSIS

Looking at the chart “A” is the 3-day Relative Strength Index.  As you can see the momentum is positive and it is about to break through 50.  RSI readings above 50 are considered quite bullish.

“B” is the price chart.  Notice, instead of the usual candlesticks, I chose to display a line chart.  This is good for seeing certain patterns.  There is a powerful bullish pattern called the “W” pattern.  Essentially it is a double bottom pattern where the stock sells off, rallies, then pulls back again before really taking off, thus forming a “W” shape.  Two keys to this pattern:  #1 the second “V” of the “W” should not dip as low as the first.  What this says is that after a rally, there was just some normal profit taking (not a heavy selloff).  #2  The most powerful occurrence of the “W” pattern is when you see it occur right under a major moving average.  That’s because many short sellers place their stops right above moving averages.  So the theory is, if the stock price breaks through the moving average, those shorts will be forced to cover and buy back shares they sold, thus making the stock move even higher.  If it sounds confusing, don’t worry.  Just look for the W under either the 50 day or 200 day moving average with the right side higher than the left and you’ve got a winner.   And look at Thursday’s chart of LOW.  BINGO!

“C” is the MACD histogram.  Yesterday we got a bullish pPp reversal on the chart.  This is a 3-bar reversal where you have a selling bar, a deeper selling bar, then a shallower selling bar.  Confirmation of this pattern will occur when LOW closes above $21.64 (yesterday’s close).

“D” is the slow stochastic momentum indicator.  Notice the nice higher low the stochastic put in (green up-sloping line).  Also, we got a bullish touch of the signal line (black) with the stochastic line (red).  Look for a solid cross of the signal line to the upside for confirmation.

Company Invest Bottom Line: Looking at the black parallel lines in the price chart it looks like LOW could easily gain 10% in the near future and move to the $23.25 area for a great trade.  Start with 50 or 100 shares and put a stop in at $1 below the purchase price.

Company Invest Recent Picks:  Still holding ERY and QID despite a rough day yesterday.

Despite Ben Bernanke and the Federal Reserve’s $600 billion effort to prop the stock market and economy, it looks as if a correction is in order now.  Now would be a good time to pause, take profits and sell a portion of your long positions, or, if you are aggressive, why not make money when the market goes down?   You can do that by shorting stocks, buying put options, or, our preferred method, buying inverse ETFs.

We know that the market goes down much faster than it goes up because fear is a powerful thing, especially when coupled with money.  Right now the early signals indicate a 5 to 10 percent correction looming in the S&P 500.  And when the S&P 500 goes down, 3/4 of all stocks go down with it so take heed.  If you want to stay in your long positions, that’s fine.  Use a 5 to 8% trailing stop (whatever you are comfortable with).  A trailing stop is a wonderful tool offered by most online brokers.  It is a variable selling point and is great when you’ve already made money and want to lock in your profits.  If you put a 5% trail in, your selling point is always 5% lower than the current bid for the stock or ETF you are in.  That way, if the price keeps going up, so does your stop, however, once it corrects 5%, your shares are automatically sold, and your profits are locked in.

Today’s pick is QID.  QID is a reverse ETF which moves in the opposite direction of the QQQ’s (technology ETF).  That is when the technology sector is going down, QID is going up.

Looking at the chart there are several encouraging signals:

“A” is the slow stochastic momentum indicator.  It has been oscillating in oversold territory since early September!  We think this time the stochastic line has a great shot of going all the way up to 80 (overbought).  If that happens, QID will rally bigtime!  There is a powerful divergence between the stochastic and the price channel.  Look at the severely downsloped price trendline (red), compared to the stochastic lows (green line).  The stochastic line is flat to slightly sloping upward, indicating a change in trend.

“B“is the price chart for QID.  We had a powerful white candle on Friday (typically a selling day) and QID had a positive week overall.  More importantly, are the 3 and 10 day Exponential Moving Averages (EMAs).  The green and red arrows in the chart indicate buy/sell signals generated when the 3 day EMA (blue line) crosses up or down through the 10 day EMA (red line).  As you can see this technique gives wonderful stock trading signals.  The last signal (SELL) occured at the beginning of September.  Since then QID has gotten a 36% haircut! As of Friday’s close the 3 day EMA is EXACTLY the same as the 10 day and is just about to cross to the upside.  Monday could be an EXCELLENT entry point.

“C” is the MACD histogram.  Look at the massive bullish divergence between the histogram and the price channel.  This is a powerful buy signal.

“D” is the ADX indicator.  You get a buy signal when the green line crosses up through the red line (heading that direction but hasn’t happend yet).  However, the ADX line (black line) gives early signals.  The ADX line measures trend, and the trend has been up since early September, however that line is now rolling over and sloping down.

Bottom Line: Look for an entry point Monday and buy 50-100 shares of QID with a stop $1 below your entry point.

UPDATE: We had two wonderful stocks here in X (US Steel) and DGP (Double Gold ETF).  Hopefully you took profits and sold all of your shares now.

ERY:  We recommended it last week, but our stop of $29.20 was triggered.  However, ERY rallied hard on Friday and we really like it again as a trade.  Look to re-enter on Monday.

At Company Invest,  we strive to provide analysis to give readers the most accurate forecast for the best stocks to buy based on recent chart signals.  We use technical analysis as our primary trading strategy.  For those who don’t know, technical analysis is the study of stock price charts.  We get signals from a variety of indicators including chart patterns, support and resistance levels, Japanese candlestick signals, moving averages, volume, and a variety of momentum indicators.

Before we get to the charts, on a macro level there are some interesting news events to consider.  With last week’s Federal Reserve decision to enact Quantitative Easing (QE2), many assumed, and rightly so, that the dollar would get trashed while commodities, especially precious metals would soar.  And that pretty much came true last week with gold hitting a new all-time high above $1,400 an ounce.  However, it seems to me this week (in a 180 degree reversal to that theory) that the Fed would like to strengthen the dollar.  There seems to be a sector rotation going on here that started yesterday and continued today.  The sector rotation appears to be a move out of gold, commodities, and treasuries and into stocks.

That brings us to today’s Company Invest pick, ERY.  ERY is a bearish Exchange Traded Fund (ETF) for the energy sector.  With what seems to be a coordinated effort to strengthen the dollar and with the dollar’s chart (UUP) looking quite bullish, the energy sector is setting up for a big correction.  And, by buying ERY, you can capitalize by making money when energy stocks go down.

COMPANY INVEST TECHNICAL ANALYSIS

Looking at today’s chart, “A” is the Relative Strength Index (RSI) set to the 7-day period.  At a reading of 10.44, the RSI is more oversold than it has been for at least 6 months (this entire chart).  This tells us a bounce is coming.

“B” is the ERY price chart.  Last Thurs, Nov 4 ERY gapped down pre-market and then continued to sell off throughout the day.  A “gap” occurs when prices move up or down outside of the trading session (in futures trading).  Technical analysis tells us that most of these gaps are eventually filled, meaning there is a very high probability that ERY goes back to the $34-$34.50 area in the near term.  That would mean over an 11% possible gain on a quick swing trade.  Also, yesterday’s candle was a hollow red candle, which indicates a reversal could be imminent.  The hollow red candle meant that ERY gapped down premarket yesterday, moved lower, then rallied the rest of the day to close higher than it opened, yet still lower (barely) than the previous day’s close.

“C” is the MACD histogram.  A shallower blue bar at the end of today’s session would indicate a reversal and a possible bullish divergence between the histogram and the price chart.  These bullish divergences happen when prices make a lower low, but the histogram makes a higher low (see sloping up green line on histogram and sloping down red line on price chart).

Finally, “D” the slow stochastic momentum indicator got a bullish cross (signal line “black” crossed up through the stochastic line “red”).

Company Invest Bottom Line:  This trade has a good risk reward.  You can buy it here and put a stop at $29.20, for a move to $34-$35.

QPK6H54PJ6RF

With the dollar rallying most of the past week, materials and commodity stocks have consequently sold off hard and US Steel is no exception.  Since October 11 (in just two weeks), the stock has pulled back 13.51%.

Trading is all about finding the right time to buy.  Many investors strictly look at company fundamentals (earnings, cash on hand, debt, price to earnings ratios, etc) to place trades.  Problem is fundamentals will tell you WHY to buy a stock, but not WHEN to buy.  That is where technical analysis comes in.  Using chart patterns and momentum indicators, we can tell when the highest probability of a good trade will occur.  And at Company Invest, we think right now is a great time for a US Steel trade.

COMPANY INVEST TECHNICAL ANALYSIS

“A” is the 3-day relative strength index, a favorite swing trading indicator at companyinvest.com.  As you can clearly see, this indictor is WAY oversold (brown area). Look at what happened the last 5 times the RSI was this oversold (green circles).  Now look at the corresponding green arrows on the price chart that indicate trade entry points.  Each entry point resulted in a minimum of a 10% gain!  And here we are again…

“B” is the daily stock pricing chart (going back to mid May).  “Support” is very important in technical analysis.  Support happens when the big investors (pension funds, hedge funds, 401k fund manager) come in and buy.  We’ve illustrated two key levels of support on this chart (S1 and S2).  US Steel has been trading right at the S1 support level for the past three trading sessions without falling below it.  In this case it means buying the stock at $40 and change is a great entry.  Notice how the $40 level was also key support back on June 7.  And should the S1 support break, the next support level (S2) is the $37 area.

Also, the red selling volume bars have been getting shorter over the last 3 trading sessions while the stock has been basing.

“C” is the MACD histogram which gives nice advance signals for stock directional change.  Although you can see selling momentum has been occurring (stair step down blue bars), it looks as if a bullish divergence is occurring between the MACD histogram and the price chart (green line in “C” Vs. red line in “B”).  Simply put, it looks as if a higher low is setting up on the histogram, while at the same time a lower low has occurred on the price chart.

“D” is the slow stochastic momentum indicator.  At 8.88, it’s also deeply oversold.  Look for the signal line (black) to cross up through the MACD line (red) in the next day or two.  Multi day rallies in the stock occurred the last 4 times this signal was triggered (green circles).

Company Invest Bottom Line:   Grab US Steel (X) here and point your stop loss order in just below support at around $39.95.  A $44 price target could be hit in just a few trading days.