Once again Eastman Kodak (EK) has disappointed investors again as it posted 2^nd quarter profits that trailed analysts estimates.  The company says in the first half of this year due to the unprecedented increase in commodity prices, cost reductions in Entertainment imaging they were not able to keep up with revenue declines for the period. Going forward, however, they will be aggressively managing the cost side of the equation in FPEG including the adjustment of cost structure in ways that will enable a sustainable, profitable business model...

However with a FusionIQ score that is still low, a 31 (Master Technical Score) – It appears EK shares will be dead money for a while.

As the attached table shows the prior leadership areas of the market, Energy, Oil and Commodity related have lost their luster of late recording the biggest one month drops in FusionIQ technical scores.  This loss of the last leadership areas of the market also suggest there is more corrective activity coming.

As seen in the attached bar chart.  FusionIQ tracks the aggregate scores by decile class clusters to see how strong or weak the tone of the market is.  Currently as seen by the blue bar there are close to 70 % of stocks within the FusionIQ Universe ranked below 40.  This high level of low ranking suggest that we are likley to still have lower lows to come.  At some point this indicator will act like an oscillator and suggest we are deeply oversold, however we don't appear to be there just yet.

Knowing when to sell a stock is probably more important than buying a stock.  As seen in the attached blog post on Ace Ltd. (ACE - FusionIQ Technical Rank - 21 out of a possible 100) using FusionIQ's unbiased timing SELL signals can help remove the emotion from the selling discipline and help one make better decisions.

Data I/O Corp ((DAIO - FusionIQ Technical Score 98 (out of 100)) said second-quarter revenues increased to $8 million from $5.8 million a year earlier and net income rose to $1.2 million, or 13 cents per share, from a loss of $1.1 million, or a loss of 13 cents per share in 2007.  With a point and figure target of $ 13.75 after solid fundamental sales performance and an increased backlog, DAIO offers solid upside potential.

Did you also know that Fusion offers money management services ?  Take our complimentary risk profile at www.fusioninvest.com/riskprofiler or call us toll free at 1-888-661-2022 to set up a call with an advisor.

Back on January 29^th 2008 we published an in-depth research report on SY shares.  Today, based on the technical strength and the strong quarter; Database License Revenues up 38 % year over year, Messaging Revenue up 41 % year over year.  Additionally Management raised Full-Year Revenue, Earnings and Cash Flow Guidance, we are now raising our target to $ 40.00 

To Get Access to more in depth research reports subscribe today at www.fusioniqrank.com/signup.php

Did you also know that Fusion offers money management services ?  Take our complimentary risk profile at Fusion Invest. Risk Profiler or call us toll free at 1-888-661-2022 to set up a call with an advisor.

Back on May 27^th 2008 we published a full research report on Qualcomm Inc. (QCOM) shares to FusionIQ subscribers.  Today QCOM shares are soaring as Qualcomm and Nokia Corp. (NOK) ended a long-running patent dispute, agreeing to license each other's technology in a potential boon for the wireless-equipment industry.

To see the full QCOM research report as well as many other subscribe today at www.fusioniqrank.com.subscribe.php

Yesterday for FusionIQ subscribers we published a full research report on Western Union Company (WU) highlighting how it broke out of a nice base and above a resistance zone in the $ 24.00 to $ 26.00 range on above average volume.  Western Union shares which rank a 97 out of a possible 100 in our FusionIQ^TM quantitative ranking system recently had a strong quarter besting estimates by 0.02 cents.  Additionally the company guided FY08 EPS above consensus and reaffirmed revenue growth targets in the 9.00 % to 11.00 % range. 

To get the full research report subscribe today at www.fusioniqrank.com/signup.php

Lately the biotech/gene and therapeutics issues have been all trading up on above average volume as money rotates into the group for the first time in a while.  This area looks to be establishing itself as an emerging leadership area.  Today two new issues, ILMN and NABI pop up on the FusionIQ Short Squeeze screen.  Both have sizeable float adjusted short interests (24 % and 11 % respectively) and higher point and figure price targets ($ 111 and $ 8.75 respectively). 

Given the rotation to biotech these two names look to offer solid near-term return potential.

Here is another snapshot of Fusion2.0.  We have simplified the layout and made additional changes to the to enhance ease of use functionality.

To test drive FusionIQ 1.5 visit us at www.fusionIQrank.com/signup.php

In Late August or early September we will be rolling out version 2.0 of FusionIQ.  This upgrade will have enhanced charting capabilities,  customizable home page layouts and tons of new trading screens.  Below are a few sneak previews of some of the new trading screens that users will be able to choose in their homepage layouts:

Hot and Cold lists – Stocks that are making continuous new highs and lows.

High and Low ranked ETF’s – A daily listing of the best and worst ETF’s

Please find attached our custom screen that shows stocks that traded up on abnormal volume and also scored new FusionIQ timing buys signals.

As seen in the attached table of new FusionIQ short squeezes, transportation stocks and biotechnology stocks which have been leaders over the last few weeks, dominate the short squeeze activity.  This concentration in certain groups suggest there are aggressive buyers moving into these sectors.

Graham Corp. (GHM) which designs and builds vacuum and heat transfer equipment for process industries around the world, scored a breakout to new highs yesterday amidst the mess that is the market of late. Stocks that act strong in weak tapes tend to suggest bullish underlying fundamentals. With a point and figure target of $ 100.00 there is still solid trading upside, particularly if GHM shares are acquired on a modest pullback.

Bank of America (BAC) recorded a profit that fell 41.0%, to 72 cents a share, but still bested the consensus estimate of 53 cents a share. BofA gained $2.71, or 9.9%, to $30.20, to help lead the Dow 29 points, or 0.3%, higher, to 11,525.  However, with such a low FusionIQ score of 9 don’t expect BAC to be off to the races anytime soon.  It is likely BAC will have to develop a long trading range before it can make any sustainable upside advances.

Though its growth rate has decelerated as revenue has ballooned, Google is still growing at a rapid clip.  Revenue rose 42 percent in the first quarter and analysts are projecting an increase in the same range during the latest quarter ended in June, despite the financial turmoil that's hurting scores of other businesses.  The extensive reach of Google's search engine outside the United States is one of the biggest reasons why the Mountain View, Calif.-based company is still faring so well. International markets accounted for more than half of Google's revenue for the first time in the first quarter and even more revenues is expected to pour in from outside the United States in the second quarter.

For the record FusionIQ's predicted surprise is predicting a marginal upside surprise.

To see whether your stock is going to beat earnings subscribe today at https://www.fusioniqrank.com/signup.php

EBay Inc's (EBAY - FusionIQ Technical Rank - 16) shares fell more than 13 today after its cautious near-term outlook led to downgrades by several Wall Street analysts.  EBay's caution reflected concern about a weak U.S. economy and changes it has been making to its auction business.  Analysts at Merrill Lynch and Goldman Sachs cut eBay to "Neutral" from "Buy," while Lehman and Jefferies both lowered their price target for the online auction house. 

Given its low FusionIQ rating prior to the comments FusionIQ users would not have been invested in EBAY as stocks ranked below 60 are considered bad investment opportunities.

Excessive short interest can be a powerful liquidity catalysts in the short and intermediate run as its creates a double buying effect as both natural buyers as well as shorts stampede into a stock simultaneously.  The attached table shows a list of stocks from the FusionIQ software platform that meet our proprietary short squeeze criteria and may offer good short-term upside trading potential over the coming days and weeks.

Back on June 4^th we highlighted WM (see original post below) which had an abysmal FusionIQ score of just 9 (out of a possible 100).  Since our post WM has fallen from just under 9.00 to below 4.00 – this is just another example of how FusionIQ with its powerful ranking metrics add value to investors as a risk management tool. 

To Subscribe today click here   https://www.fusioniqrank.com/signup.php 

June 4, 2008

Washington Mutual Inc. (WM) - WAMU how low can you go ?

Washington Mutual Inc. ((WM) “ FusionIQ Master Technical Score ” 9) shares have been like most financials over the last several months, utterly obliterated.    However just when many people thought the financials were bottoming now many, such as WM, are making new 52 week lows.  The moral of the story is it is hard to catch a falling knife so do not try, unless of course you worked in the circus in a previous life !!

We still remain negative on the financials across the board so do not be seduced by the fact they appear cheap.

First Cash Financial Services, Inc. (FCFS) which operates pawn stores scored a new FusionIQ Short Squeeze on Friday as investors assume business will pick up in a slowing economy.  With close to 14.00% of its float short and a point and figure target of $ 34.00 FCFS offers investors a solid upside return potential within the framework of a possibly growing macro theme (ie. companies that benefit from a weakening economy).

Natus Medical Incorporated (BABY - FusionIQ Master Technical Score - 97) a medical device company that develops, manufactures, and markets screening products to identify and monitor common medical disorders that may occur between conception to a baby's first birthday scored a new FusionIQ Short Squeeze on Friday.  We love stocks that act strong in a weak tape and BABY shares certainly fit the bill.  With close to 13.00% of its float short and a point and figure target of $ 33.50 and a new FusionIQ BUY signal BABY offers excellent long side return potential.

Revenue rose to $46.89 billion from $42.38 billion a year earlier. On the basis of continuing operations, GE said it earned $5.39 billion, or 54 cents per share. Thomson Financial says analysts expected the company to report earnings of 54 cents per share on revenue of $45.31 billion.

With a terrible looking chart and a low FusionIQ score of 26 GE still looks like a name to avoid.

As we mentioned many times on this blog FusionIQ offers powerful short-term trading screens like the FusionIQ high volume breakouts seen in the table below .  This

screen looks to highlight stocks trading up on above average volume, typically a sign of strong institutional interest.

GMX Resources Inc, which has over 22 % of its float short scored a new short-term FusionIQ short squeeze yesterday.  This coupled with its FusionIQ 100 master technical rank suggest shares could continue to surge over the coming days.

With a point and figure target of $ 12.25 IDIX shares offer good upside potential from present levels.

EZCORP, Inc. (EZPW) which operates pawn shops, scored a new high-ranked FusionIQ breakout yesterday as it surged 8.5 % on 2x its 21-day average volume.  This breakout has a bullish point and figure target of $ 22.00 which offers investors ample upside potential.

NuVasive, Inc. (NUVA) which designs, develops, and markets products for the surgical treatment of spine disorders scored a new FusionIQ short squeeze yesterday as it broke out yesterday on almost 2x its 21-day average volume.  With close to 17.22 % of its float short NUVA has a large short interest, which should provide plenty of liquidity to drive prices higher.  NUVA has been one of the few stocks that has bucked the markets recent weakness.  This relative strength suggests confidence on the part of institutions.

General Motors Corp (NYSE: FusionIQ Master Rank - 12) is planning to cut thousands of white-collar jobs and is considering whether it should sell or stop production of more of its brands, The Wall Street Journal, citing people familiar with the matter said both moves are part of a broader re-evaluation of the company's strategy and of its ability to meet an internal projection of returning to profitability in 2010, the people told the paper. The job cuts are likely to be approved when GM's board of directors meets in early August, the people said. The reductions would be in addition to earlier announced cuts. Management may also present the board with options for raising additional cash, they told the paper. The board may also hear management's latest thoughts on whether GM should trim the number of brands it offers in the United States, the people told the paper. All but the Cadillac and Chevrolet brands, which GM considers core to its business, are undergoing close scrutiny.

Given the aforementioned bad news and its’ low FusionIQ score don’t expect GM to be a winner anytime soon.

Aerovironment Inc. (AVAV) which develops and produces small unmanned aircraft systems is soaring today up over 10.00 %.  FusionIQ subscribers received this email on Thursday July 3^rd  before todays pop.  Guess it pays to be a subscriber !! 

Anyway the story for AVAV is as follows:   The company has beat earnings estimates the last six quarters and the unmanned aircraft systems are expected to receive more and more funding as part of the new defense budget so growth expectations for AVAV are probably too conservative.  In fact Defense Secretary Robert Gates recently stated that Unmanned aerial vehicles (UAVs) can give ground commanders instantaneous information about what they’re facing.  He also stated  I have taken a special interest in UAVs, because they are ideal for many of today's tasks in today’s wars. They give troops the tremendous advantage of seeing full-motion, real-time, streaming video over a target, such as an insurgent planting an IED on a street corner.  This language clearly supports he is behind increasing the budget for these strategic surveillance tools.

With a point and figure target of $ 50.50 and insiders controlling close to 40% of the float AVAV looks to offer good upside potential.  We would suggest setting a stop loss commensurate with your personal risk tolerance.

Celgene Corp. (CELG) shares scored a high volume breakout yesterday trading up on over four times its 21-day average volume as its competitor Supergen Inc. (SUPG) had its Dacogen drug nixed at the FDA.  This negative FDA ruling allows Celgene to retain its 71 % market shares in the MDS market with its Revlimid and Vidaza drugs.  The point and figure target for CELG is $ 90.00.

Olin Corp. (OLN) a manufacturer of chlorine and caustic soda, sodium hydrosulfite, bleach products, copper, copper alloy sheet, strip welded tube, brass rod and stainless strip, scored a high volume FusionIQ Short Squeeze yesterday.  With close to 12.00% of its’ float short and a point and figure price target of $ 37.50 there is still good upside profit potential over the intermediate term.

As the charts below show all three of the major ETF’s;  the Powershares QQQQ, the SPDR’s and the Dow Diamonds are all on new FusionIQ sell signals.  Since these three are proxies for the major market averages, this does not seem to bode well for the bull camp.

As seen in the table below four out of the six stocks that meet the FusionIQ Short Squeeze criteria are in the Oil Comp, Exploration

and production group.  Even though many say that the group is extended they still continue to show techical strength.