Chart Analysis: JDSU, RINO, and CDE

Despite the fact that the market fell sharply today (and is apt to slide some more before it's all said and done), we found a bullish idea or two. On the other hand, two out of our three focus stocks today are looking like they're going to move lower before higher. Those names are RINO International Corporation (NASDAQ:RINO), Coeur d'Alene Mines Corporation (NYSE:CDE), and JDS Uniphase Corporation (NASDAQ:JDSU). Here's a detailed look art each one.

I'll acknowledge it's a bit premature to be talking about Coeur d'Alene Mines Corporation (NYSE:CDE) in a bearish light. On the other hand, waiting until the time comes may mean it's too late for you to do anything about it.

In a nutshell, Coeur d'Alene Mines Corporation shares seem to be setting up a head-and-shoulders patter, with the neckline currently at $20.10 and rising. CDE closed at $20.94 today, so at this point the pattern is irrelevant. Nevertheless...

There's something else about Coeur d'Alene Mines that attracted too, but I can't quite put my finger on it. Perhaps it's the lack of volatility with which the head and shoulders shape has materialized - the lesser the volatility, the greater the predictability. Though CDE has given us a little noise, volume and movement have evened out over the last four weeks.

You'll also see a gap around $17.85 drawing Coeur d'Alene Mines Corporation shares lower; that gap level was also resistance in May.

 
----------------------------------------------------------------------
Sign-up for Free to Receive Future Commentary
and Trading Alerts on RINO, JDSU, and CDE.
----------------------------------------------------------------------

There's been plenty of ebb and flow, but RINO International Corporation (NASDAQ:RINO) has clearly been moving higher since June, shrugging off the bulk of the bearish tides. Today's high-volume gain in the face of bearishness is just another testament to its strength.  

Given the nature of the trade in addition to the fact that we have the choice, if you're interested in RINO International Corporation, you may as well wait to see if the short-term ceiling at $24.36 is broken. I think it will be though - RINO has been taking tow steps forward for every one step back (with a step back being what we saw in October). The buying volume has been decidedly better than the selling volume both times the pattern has played out.

That said, this one of those rare cases where the fundamentals support a bullish chart. RINO International Corporation's current P/E of 17.8 and forward-looking P/E of 10.3 are hard not to respect.


And finally, I'm going to be the least popular kid in class today by taking a bearish view on JDS Uniphase Corporation (NASDAQ:JDSU) - one of today's biggest gainers. In fact, I'm looking for the stock to fall because it was one of today's big winners.... with a kicker.

One could make the argument that the big gap left behind by JDS Uniphase Corporation today following the jump from yesterday's close of $7.20 to today's low of $7.61 is reason enough to look for a pullback. That's a rationale view, but even without the gap I'd be worried about the shape of today's bar from JDSI.

It's called a doji, where the open and close are essentially the same price, and the bar is tall on that particular day. It indicates indecision, which certainly isn't a stretch for JDS Uniphase Corporation today as the market was trying to decide whether it should enter new trades, or take profits after the pop. The fact that the open and the close were both on the bottom half of the bar - on the same day that we saw a huge volume spike - suggests there was far more profit-taking interest than buying interest for JDSU. I'm going to assume we'll hear those echoes tomorrow.

If you'd like to know of any changes in our opinion of CDE, JDSU, and RINO (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered weekly.