There are thousands of securities out there that one can consider investing in -- and that's just in the U.S. Having a filter or metric to cut the list down to something manageable is a good start.
Goldman Sachs put together a list of 17 stocks that looked "cheap" when considering their debt-adjusted cash flow. I culled out five of the 17 names that also had positive-looking charts and indicators.
Here is my technical commentary on: Mylan (MYL) - Get Mylan N.V. (MYL) Report , Apogee Enterprises (APOG) - Get Apogee Enterprises, Inc. Report , Carrizo Oil & Gas (CRZO) - Get Carrizo Oil & Gas, Inc. Report , The Children's Place (PLCE) - Get Children's Place, Inc. Report and PolyOne (POL) - Get PolyOne Corporation Report .
In this 12-month daily chart of Mylan (MYL) - Get Mylan N.V. (MYL) Report , we can see that dips to and below $40 have been bought in September, October, February and May. Prices have edged above the 50-day moving average line and are in striking distance to the 200-day line.
The on-balance-volume, or OBV, line moved up in November and has remained steady since despite a January-to-May downtrend. This sideways action on the OBV line while prices declined tells me that longs stayed with their positions.
The moving average convergence/divergence oscillator is close to the zero line and a new "go long" signal.
Prices are above the rising 50-day moving average line and testing the still-declining 200-day average. The OBV line has been moving up from a February low and tells us that buyers of Apogee have been more aggressive.
The MACD oscillator is in a bullish configuration above the zero line.
Carrizo Oil & Gas
Prices have climbed above the 50-day and the 200-day moving averages. The slope of the 50-day is positive, and the 200-day is flattening. Also note that last month we got a golden cross of these two average.
Traders who follow moving average signals consider this crossover as bullish.
The OBV line is generally moving in the right direction, and the MACD oscillator has been above the zero line for the past three months.
The Children's Place
This chart of The Children's Place (PLCE) - Get Children's Place, Inc. Report is interesting in that the chart bottoms in November and takes off to the upside. Prices stalled out in March and April and pulled back in May.
The OBV line made minor dip and came back up to its recent high, which is strong behavior.
The 200-day moving average line has a positive slope, and the MACD oscillator just signaled a cover-shorts buy signal.
This last name, PolyOne (POL) - Get PolyOne Corporation Report , is interesting in that prices made a quick U-turn in February and rallied without looking back or correcting much. Last month prices caught their breath with a sideways-to-higher consolidation.
The OBV line has risen strongly the whole time, telling us that buyers are very aggressive in adding to long positions.
The MACD oscillator is pointed down but looks like it is generating a new buy signal.