Nearest Support: $13.60
Catalyst: Acquisition >>4 M&A Deal Stocks to Watch in June Small-cap TV station operator Belo ( BLC) is up more than 27% this morning after news that it was being acquired by media firm Gannett (GCI) for $13.75 per share. The deal gives Gannett a portfolio of 20 television stations in 15 U.S. markets. BLC is seeing heaving trading volume this afternoon after the news hit, as shareholders take risk off the table by exiting their positions. The 0.7% risk premium currently in shares as of this writing doesn't look particularly attractive right now. Gannett's $13.75 offer price is effectively a "hard" resistance level right now. If you missed out on this acquisition, it makes zero sense to chase it.
Nearest Support: $22
Catalyst: Buying BLC >>5 Stocks With Big Insider Buying The same can't be said about Belo's acquiring firm, Gannett ( GCI). GCI is rallying hard itself this morning, up more than 26% on high volume this afternoon thanks to the acquisition news. That's sent shares of Gannett to a new multi-year high. Making new highs is significant from an investor psychology standpoint because it means that everyone who has bought shares in the last year is sitting on gains. As a result, the "back to even" mentality is less of a concern than it would be for a name with a higher proportion of shareholders sitting on losses. Risk-tolerant traders can enter a position here with a tight stop in place.
Nearest Support: $13.60
Catalyst: Technical Setup >>4 Stocks Spiking on Big Volume Metal miner Vale ( VALE) is getting hefty trading volume this afternoon, thanks to a 4% spike in shares that's grabbing traders' eyes. While the bounce is certainly noticeable in today's relatively low-volatility session, it's a little early to call Vale a buyable name. That's because, from a technical standpoint, this stock looks like a train wreck. The real reason for Vale's upside today is just how hard shares have been hit in the last couple of weeks. Longer-term, things don't look much better: Vale's share price is off more than 31% year-to-date. This stock is bouncing, but I'm far from convinced that shares have found any true semblance of support. Opportunistic traders should wait for VALE to break its downtrend resistance line before thinking about building a position in the Brazilian miner.
Armour Residential REIT
Nearest Support: $4.60
Catalyst: Dividend Reiteration >>5 Hated Earnings Stocks That Deserve Your Love It's been a rough month for Armour Residential REIT ( ARR). Since the start of May, shares of the mortgage-focused real estate investment trust have dropped by more than 25%. Today, they're getting a reprieve just like the bounce in Vale. One big difference is the fact that ARR's bounce is event-driven: the firm reiterated its monthly dividend at 7 cents per share, a payout that adds up to a whopping 17.4% yield at current price levels. Anxiety over the possibility of a rate cut has been the biggest reason for ARR's drop in the last few months. Another big difference for ARR is the fact that shares are actually testing trendline resistance thanks to today's 5.4% rebound. If this stock can manage to take out $5, I think we've got a good indication that a price reversal is taking place. Until then, mind the downtrend. To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
Twitter and become a fan on Facebook.