Macro micro trader

While I have been constantly talking about futures and have been occasionally tweeting about the stocks which I find interesting. It was about time I wrote about stocks that I see some potential on either side. In the end it’s all about making some money while there is opportunity to.

For this post I’ll keep my large cap names aside and focus only on the small and mid cap names as there is still a lot of room for them to rally. Coupled with some ETFs.

DISV (Dimensional International Small Cap Value ETF): DISV is an ETF by Dimensional Holdings with asset size of $1.2 billion launched on March 23, 2022. This ET focuses on international small cap stocks that have potential to give good returns.

The ETF, though diversely spread, has majority of its stocks concentrated in Japan (about 22.3%), which is a concentration risk. (Data source Alta Vista Research)

From technical perspective, the ET has broken out of a long term trendline resistance and also fairly above the listing price. Any dips in the stock are a buying opportunity.

DFEV (Dimensional Emerging Markets Value ETF): This one too, is from Dimensional Holdings and is focused on Emerging markets. Although their asset size is smaller at 432 million, with nearly 60% of their holdings being in large and midcap stocks of EMs. More than 65% of all those holdings are concentrated in Asian equities with China commanding the highest share of 21.2% followed by Taiwan (16.3%), India (15.5%) and South Korea (13.3%). (Data source: ETFRC.COM)

Technically, the stock, although has potential to rally further, there are quite a few signs that tell me I could short here. Double top, rising wedge trendline resistance and negatively diverged MACD. Another key perspective, upper end of the channel as shown in the next chart.

ORI (Old Republic International Corporation): ORI is a $8.08 billion market cap company and is a holding company that does the business of insurance underwriting. From the fundamental perspective, the company hasn’t done any good to write home about:

But many a times, charts speak louder than the numbers on balance sheet and what’s visible here is that the stock has broken out of a 16 year long trendline resistance and has a lot of room on the upside. I would buy the stock on the dip with daily 50MA as my starting stop loss.

TDW (Tidewater Inc): Tidewater Inc is $3 billion market cap company that is engaged in offshore marine support and transportation to the offshore energy industry. Here’s a snapshot of the company’s financials:

Chartically, it has definitely done wonders for the investors this year as the stock has almost doubled and has crossed past all kinds of resistances and supply zones. What looks next? More than 50 percent from here too as technically there is no other resistance other than the supply zone of 90s.

Disclaimer: I personally do not have any single share of any of the stocks mentioned.

For a change, I won’t be doing detailed write up on the futures this week, but if you are still interested, you can find it in the Youtube video right here:

Here’s the weekly market round up with Mukund: