Top News Stories For November 13 2017

The day’s top news stories from stocks on the GuerillaStockTrading watch list.
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AECOM Stock Has Large Players Volume Turn Up and TMF Breaking Positive

AECOM reported both earnings and revenue beats which made the large players volume turn up sharply while the Twiggs Money Flow broke positive.

Large players volume in AECOM stock has turned up and the Twiggs Money Flow has just gone positive. These bullish technical signals happened because of today’s earnings and revenue beats.
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Internap Corp Pullback On Rising Large Players Volume

Internap Corp stock has pulled back over the last 3 days while the large players volume has continued to rise. This positive divergence between large players volume and price is bullish for the stock.

Internap Corporation is a technology provider of Internet infrastructure. The Company provides Internet infrastructure through both Colocation Business and Enterprise Services and Cloud Services. The Company operates through two segments: Data Center and Network Services, and Cloud and Hosting Services.
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Switch Inc Stock IPO Long Term Investment On Datacenter Growth

Switch Inc stock just IPO’d at $17 per share, raising more than $470 million. Insider Erin Thomas Morton bought 300,000 shares of Switch Inc stock in a transaction dated Wednesday, October 11th. The shares were acquired at an average cost of $17.00 per share, with a total value of $5,100,000.
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Assured Guaranty Oversold, Gets Buy Rating From MKM Partners

Assured Guaranty looks like an awesome oversold setup on the chart with MKM Partners giving the stock a Buy rating on October 5, 2017.

Assured Guaranty provides credit protection products to the United States and international public finance, including infrastructure, and structured finance markets. It applies its credit underwriting judgment, risk management skills and capital markets experience primarily to offer financial guaranty insurance that protects holders of debt instruments and other monetary obligations from defaults in scheduled payments.
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Granite Construction Does Symmetrical Triangle Breakout On Pocket Pivot

Granite Construction stock did a Symmetrical Triangle breakout today on a bullish pocket pivot signal. The breakout has occurred after the company has reported a string of contract wins over the last couple of weeks.

Analysts love Granite Construction stock. Based on their most recently released notes to investors, 6 analysts have a rating of outperform, 4 analysts have a rating of “buy”, 1 analyst has a rating of “hold”, and no analysts rate the stock as either “underperform” or “sell”.

Granite Construction reported earnings today which missed. The company reported EPS of $0.35 versus the $0.60 estimate. However, revenue beat coming in at $762.9 million versus the $678.4 million estimate.

Strong growth is taking place in Granite Construction in 2017. The company reports increased revenue opportunities and a backlog that has crossed above $4 billion for the first time in Granite’s 95 year history!

Granite is one of the largest construction companies in the US but its market cap is only $2.24 billion as of August 1, 2017. That’s a good valuation when you consider that the company’s market cap is about half of its current backlog.

Contracts are pouring in to the company. Here are some of the most recent contract wins:

Jul-31-17 = Granite Awarded $441 Million Joint Venture Design-Build Transit Project in Washington D.C.
Jul-31-17 = Granite Awarded $318 Million Bridge Project in Brooklyn
Jul-27-17 = Granite Awarded $20 Million Dam Project in Northern California
Jul-18-17 = Granite Awarded $855 Million Joint Venture Design-Build Highway Project in Texas
Jun-09-17 = Granite Construction Wins $36M Contract from Caltrans
Jun-07-17 = Granite Awarded $54 Million Highway Rehabilitation Project in Alaska

Can you imagine how big Granite Construction’s backlog will grow if we get a $1 trillion infrastructure spending program?

Public transportation and infrastructure spending overall remains steady and stable, and it will increase significantly in Washington and California.

California’s $52 billion SB 1 transportation bill was passed in April of 2017. The recently enacted 2017-2018 California budget included an increase in state transportation capital funding from less than $2 billion last year to more than $4 billion this year. Here’s the crazy thing. The $4 billion backlog does not include any SB 1 projects yet because California has said that almost half of the $4 billion will not be available for projects until the first six months of 2018.

Spending Needed To Upgrade Infrastructure

The $1 trillion infrastructure spending is only a fraction of what is needed to repair America’s aging infrastructure. The ASCE published this graphic for how much money is needed now to repair this country’s infrastructure. Note: All numbers are in billions.

Source: ASCE

The ASCE estimates that we will need to spend $4.59 trillion to update our old infrastructure.

Granite Construction Stock

Huge buying took place today after the earnings report. Notice the bullish pocket pivot (blue dot) today. The rising large player volume as the stock was dropping totally predicted the big breakout move today.

Unfortunately GVA is not a good setup right now. Prices have extended too far to the upside. For a better entry, add it to your watch list and wait for a consolidation. This market is too dangerous to be chasing any overvalued stock.

What are your thoughts on infrastructure spending and do you have an infrastructure stock you’re tracking? Leave your comments below. To find more good stocks to buy check out this lesson.

Vulcan Materials Stock Symmetrical Triangle On Possible Earnings Beat

Vulcan Materials stock has formed a Symmetrical Triangle on a possible earnings beat when they report on August 1, 2017. I like the chart setup enough to go long this stock in my personal trading account.

Vulcan Materials News

Kiplinger’s Personal Finance called Vulcan Materials the best stock in Alabama (here). Kiplinger writes:

Vulcan is trading near an all-time high thanks to a run-up in the stocks of building-materials companies following the presidential election. And if the current administration goes forward with its plan to spend $1 trillion to revamp the nation’s infrastructure, few companies stand to benefit more than Vulcan.

Vulcan Materials Stock Chart

VMC shows a beautiful positive divergence between the Effective Volume study of large players volume and the price chart. The Twiggs Money Flow does not support the large players volume but does appear to be rounding up.

Prices have been consolidating lately and the volatility has been reduced. The chart is very close to forming a momentum squeeze setup.

The TSI has given a beautiful buy signal on a bullish cross.

There is a support zone below the current price at $126.44, a stop order could be placed below this zone.

The chart looks like a good setup as we head into the August 1, 2017 earnings report which is likely to beat IMO. This is a short-term swing long trade with a sell either before, or the day after, earnings.

What do you think about Vulcan Materials stock? Leave your comment below.


Trump US Dollar Trade Falls Apart As Investors Race For the Exit

Shortly after President Trump won the election in November of 2016, big money raced into the US dollar. The idea was that a new President with an America first agenda in which China would be labeled a currency manipulator had to be good for the US dollar. Lots of money raced into the US dollar and in funds like the PowerShares DB US Dollar Index Bullish Fund (UUP).
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Jamie Dimon Says Stupid S**t Is Why Congress Isn’t Helping Americans

Jamie Dimon said it’s an embarrassment being an American citizen and traveling abroad because we are such a bureaucratic and confusing society.

David George said Jamie Dimon’s rant was meant to indirectly communicate with Congress that they need to get off their hands and get something done for the American people.

Dobb’s went on the attack after Jamie Dimon’s comments calling him the least grateful corporatists in the US:

Now that everyone has gotten that off their chest, do you think we can raise the debt ceiling, cut taxes, and launch a $1 trillion infrastructure program to get Americans back to work? Saudi Arabia has already agreed to invest billions in US infrastructure spending so what’s the hold up?

The Affordable Care Act Holds On As CBO Torpedoes Senate Replacement Bill

The CBO just torpedoed the replacement of the Affordable Care Act today. The reason we care as stock traders is that the Trump Administration feels it can’t pass tax reform until it deals with healthcare first. The torpedo from the CBO today means that lower taxes and an infrastructure spending bill just got delayed again.

The Senate bill to repeal the Affordable Care Act was edging toward complete failure on Monday following the nonpartisan Congressional Budget Office (CBO) stating that it would increase the number of people without health insurance by 22 million by 2026.

Insurer Blue Cross and Blue Shield said it was encouraged by the addition of incentives for continued coverage. Molina Healthcare said it preferred the Obamacare mandate, stated the Senate bill, even after revised, would only delay care.

But after the CBO’s statement today, congressmen are running away from the Senate bill as fast as they can.

Senator Ron Johnson of Wisconsin hinted that he would likely oppose taking up the bill on a procedural vote expected as early as Tuesday, meaning that the fall of the Senate bill is likely imminent.

“On the present bill I am not voting to get on it unless it changes,” said Senator Rand Paul (R-Ky.) Asked if that meant he’d vote “no” on the first motion to proceed, the Kentucky Republican said “absolutely” and argued that leadership does not currently have the votes it needs.

Ms. Collins wrote on Twitter on Monday evening that she wanted to work with her colleagues from both parties to correct flaws in the Affordable Care Act, but that the budget office’s report revealed that the “Senate bill won’t do it.”

The report left Senator Mitch McConnell of Kentucky two options: pulling the bill from consideration while he renegotiates, or allowing it to go down in defeat.

The vote could come as soon as Tuesday, or maybe Wednesday.

The Senate bill would decrease federal deficits by a total of $321 billion within a decade, the budget office said.

Mr. McConnell, who’s the chief author of the bill, wanted the Senate to approve it prior to a planned recess for the Fourth of July, but that seems increasingly doubtful. Misgivings in the Republican bill extend beyond some of the moderate and conservative members and Mr. McConnell can lose only two Republicans.

Johnson and Paul, as well as GOP Sens. Ted Cruz (Texas) and Mike Lee (Utah), announced last week that they couldn’t support the bill in its present form.

Under the bill, the budget office said, subsidies to help people buy health insurance could be “considerably smaller than under present law.” Beginning in 2020, the budget office said, deductibles and premiums would be so onerous that few low-income individuals would buy any plan.

For instance, it said, for a 64-year-old having an annual income of $26,500, the net premium in 2026 to get a midlevel silver program, after subsidies, would average $6,500, compared with $1,700 under the Affordable Care Act.

The report stated, for a 64-year-old having an annual income of $56,800, the premium in 2026 would average $20,500 a year, or three times the number expected under the Affordable Care Act.

The budget office report was a significant setback to Senate Republican leaders.

The White House discounted the report, saying that the CBO had “consistently proven it cannot accurately predict the way that healthcare laws will affect insurance coverage.”

The 15 million people the CBO estimates will be uninsured in 2018 is mainly because of the repeal of the penalty associated with being uninsured. The CBO didn’t consider the revised version that included the new waiting period.