E-mails galore

In one of my e-mails I was asked about Embraer-Empresa Brasileira de Aeronáutica S.A. (ERJ). As can be assumed, it’s an aircraft maker based in Brazil. Usually I’ll stay away from aerospace, but this one looks promising. This is not a stock for the faint of heart, as no aerospace stock ever is, but with its latest positive earnings and yesterday’s deal with China's Hainan Airlines Co. we have plenty of catalysts to keep this one in the air. ERJ supplies many different countries allowing it to dodge the coming recession in the American markets. Charts look good, but it’s overextended. Allow it to come back down to 37.5 and if you like this one, hop aboard.

Good Ol’ Valero (VLO) This stock has been my biggest money maker of all time and I was asked for an analysis. Currently VLO is a chartist’s nightmare. As shown, there are two strong opposing trends. The stock is sitting on its 50 week moving average, which implies high volatility. If anybody trades options, I believe a straddle is in order. I have the bias that oil will hit $90 per barrel, so I can’t say to short this one, but buying seems unreasonable. VLO has its nearest support at 40, and its best support all the way down to 30. I’ll stick to the trends that are more consistent.

I will cherry pick from the stocks Andrey left in the comments since I still have more e-mails I need to get to, and I can’t do too many at a time unless I want to make a mistake.

I’m skipping World Wrestling Entertainment, Inc. (WWE), since they reported today. Again I’ll advise to never jump into a stock the day before earnings. Not even the professional analysts have a good handle on predicting earnings. If anybody got into WWE, hop on out for the short term because it’s already overextended (17.40 at the time of this writing).

Finally, Vical Incorporated (VICL) was suggested. I love the fact that insiders from the company are picking up shares. A few analysts like the company and it may have some good products in development, but it has no revenue generators yet. As we all know I currently own Amgen, but all biotech’s are not created equally. This is a high volatility stock with an average day of 4% change. You should not own VICL unless you can handle a big risk. Some may disagree, saying that VICL has licenses, partnerships, and XYZ product being developed but with a recession coming, a company without a product is a sitting duck.

Thanks for the stocks,
and again I hope this was helpful.

*Edit* I found this article that mentions AMGN as a recession proof stock.