With the combination of a short week and tons of U.S data about to be shared, it is up to anybody to guess how investors will handle the news if its good or bad. That being said, there is no reason we should shy away from the markets.
Heading into the week I will be focusing on stocks with good global exposure. Here are a few of them:
Vale – RIO
Being the largest ore producer in the world, it a wonder to why they are only at $41, especially with the run many South American based companies have experienced.
After looking at the chart, we see the classic higher highs, higher lows for an upward trend. Fresh off a new 52 week high, it is quite possible RIO could see a nice run for some good time.
With a bounce of the blue support, I would buy at $41.20 with a 3 point target. Depending on the movement the move could be much higher in the long term.
Caterpillar – CAT
I had put this stock on the dead list a couple weeks back, and it really didn’t do that much during the time span except consolidate; however, the stock could be back on the rise.
With heavy exposure in Asia (China anybody), it is only a matter of time before CAT figures it out. China still has lots of work to do in preparation for the Olympics. As time becomes shorter more machines and Caterpillar products will be in high demand.
A buy at $82.10 can see a 10 point rise in a month or so. Depending on the movement, we could see CAT embarking on a $100. Could it be on cruise control from there?
Haliburton – HAL
For some reason many people don’t want to believe in Haliburton’s heavy international exposure; however, I believe it is definitely there, especially in the Middle East.
I still recommend to be cautious with this stock. Even a one cent drop in oil could potentially cause a sell off in many energy and oil stocks. That being said I like a breakout at $48, with a quick 2 point pick up.
Key Points of Importance
- Keep stop losses tight
- Take what you can get
- Be prepared for the unexpected and then some.
Be on the watch for some more depending on how the data comes out.