Stocks opened up on a firmly bullish footing this morning, but we'll remind you we saw the same thing yesterday only to watch almost all the gains be given back by the end of the day. Be that as it may, we ran across three charts that could resist a bearish tide, or lead a bullish one. Those names are Best Buy Co., Inc. (NYSE:BBY), Global Cash Access Holdings, Inc. (NYSE:GCA), and Axcelis Technologies, Inc. (NASDAQ:ACLS). Let's review them one at a time.
Global Cash Access Holdings, Inc. (NYSE:GCA) has proven to be something of an enigma, though bullish in all the right ways. For instance, the company was profitable when it shouldn't have been last year.
Global Cash Access Holdings provides credit and cash advance services to casinos. Between the tightened credit environment and the plunge in casino visits, the company should have imploded. However, this particular company actually increased earnings last year; it's on pace to do it again this year too.
What got our attention is today's major outside bullish day reversal from GCA. A much lower open and then a much higher high following three months worth of downside suggests Global Cash Access Holdings are finally (and deservedly) pointed higher again. I just wanted to point it out as in idea because the company is actually supporting a bullish chart with strong results.
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We know it's a little bit out of our normal 'small cap; scope, but opportunity is opportunity. So, we think
Best Buy Co., Inc. (NYSE:BBY) is on the verge of a major move.
To really do this chart justice, we've plotted a weekly chart of Best Buy Co. shares below. What you'll find is a fairly symmetrical wedge shape that's quickly coming to a point. In fact, BBY will be forced out of the wedge - one way or another - within a couple of weeks at the most. You'll also see that Best Buy Co. is dealing with horizontal resistance at $42.10.
I know what you're thinking... if BBY is so bullish, why hasn't it broken out yet? No argument here. I'd keep your powder dry until we start to see the bulls actually make a move. It's worth watching closely simply because when/if Best Buy Co. shares cross resistance lines, the strength and speed of the move could be greater than most people realize. Put it on you watchlist.
And finally,
Axcelis Technologies, Inc. (NASDAQ:ACLS) looks like it's setting up a short-term bullish swing. Actually, it looks like it's already started it.
Axcelis Technologies pulled away from two key rising support lines in September, and with the speed at which ACLS shares fell in October I was left wondering if they'd be able to stop the dip before it got really ugly. Fortunately, they did. The stock kissed the lower one on Monday, and has been pointed higher ever since.
This is strictly a short-term trade, and not a call on Axcelis Technologies' merits as a company. I suspect any bounce will only last for a few weeks at most, and I don't foresee ACLS moving any higher than $2.00 or so with this swing. That's not a bad move though - I'd take half of that if it only took a few days to reap it.
If you'd like to know of any changes in our opinion of BBY, GCA, or ACLS (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered weekly.
