Data storage stocks are trading with mixed results this morning, but current action might give traders some food for thought on a longer-term basis. Many traders/investors have had several days to begin putting together a list of stocks in the group that may have been considered "buying opportunities" today and we can go to work and look for those that might me standouts today.
Data Storage Stocks - Sorted by volume traded
We've cut back the sector list of data storage stocks somewhat and traders should try and focus their attention on stocks that trade some volume, as this is most likely where institutional money trades. One stock that I've mentioned in past months is Storage Technology (NYSE:STK) as a stock that had been developing a more bullish chart.
Storage Technology (STK) - last 9 months
Shares of Storage Technology (NYSE:STK) have fared rather well today as some of the larger infrastructure data storage companies have been pushed into the spotlight. Shares of STK had been range bound in recent sessions and hovering near a downward trend. The bullish move from upward trend near the $12 level back in late July came on BIG volume and today's action gives hint that those buyers aren't looking to sell. A move above the 19.1% retracement level of $15.04 could see a challenge to the $16.55. Perhaps a good example of a stock that was looking bullish prior to recent events that still looks strong.
Property casualty insurance stocks under pressure
It was widely expected that many property/casualty insurance stocks would come under selling pressure today. Below is a list of stocks in the group. The list is sorted by shares traded and shows there's a lot of trading going on in these stocks. Those with greatest amount of volume are institutionally held and give greatest insight near-term to how things shake out. One stock in the group that we've mentioned from time to time in past market commentary was shares of Ace Limited (NYSE:ACE).
Property/Casualty Insurance Stocks - Sorted by volume
As you can see, there's a lot of red in one portion of the insurance sector. It takes a lot of fundamental analysis to figure out why some of these stocks may be being hit and it is difficult to predict how things will shake out. However, the investor/trader that will use some of the techniques of "rolling retracement" may be able to identify buy/sell points for some of these stocks. In previous commentary, we thought shares of ACE Ltd. (NYSE:ACE) had downside to 100% retracement of $31.59. A trader that had shorted that stock prior to today's action is either locking in their profits or at least lowering their stops in the trade to $31.59.
Recent events will undoubtedly lead to increased security at airports, as well as other public buildings. The following is a list of companies that manufacture security products.
Viisage Technology (VISG) provides cost effective identity protection solutions for security and e-commerce applications through their face recognition technology. Cameras capture the image, and Viisage's software takes 128 readings of each face and compares it to those in a database.
Visionics Corporation (VSNX) also has face recognition technology as well as systems for capturing and transmitting forensic- quality fingerprints to central databases.
ICTS International (ICTS) provides advanced aviation security services, including x-ray screening of baggage, security operations, and passenger profiling.
American Science and Engineering (ASE) develops and manufactures sophisticated X-ray inspection products for critical detection and security applications.
OSI Systems (OSIS) manufactures security and inspection products, which can be used to scan body, baggage, and cargo for narcotics, gold, currency and agricultural products. The Company also makes metal detection systems under it s Metor brand name.
Vicon Industries (VII) designs, manufactures, and assembles a wide array of closed circuit television systems.
Magal Security Systems (MAGS) manufactures computerized security systems. Their products include perimeter security systems, video motion detection systems, and explosive detection systems.
Until those security measures are in place, investors believe that companies will use teleconferencing instead of flying.
Polycom manufactures communications equipment that allows users to access broadband networks to conduct voice, video and data communications.
WebEx develops services to conduct meetings and share documents on the Internet via a standard web browser.
Avistar and PictureTel market and support video-enabled networked communication systems that provide video conferencing, data sharing, and streaming video.