One of our basket of Canadian Royalty Trusts, PGH has broken out on its Daily chart.  It has also broken out on its Weekly chart and in the process, taken out the overhead resistance of its 200-Week MA.  PGH has also moved above its 50-Month MA on the LT Trend.

We like a 2-5% opening entry here with the goal that we may own 3-5 of these Trusts at a total investment of no more than 10% of our Core Portfolio.  The Trust is currently paying a monthly distribution of $.07 / Unit which translates to an annual return of ~7.5%

Though the tax status is undetermined at this point, past distributions have generally been “qualified” which means they are taxed at LT Capital Gains rates rather at ordinary income tax rates, making it an excellent candidate for a spot in your after-tax trading or investment account, rather than in an IRA account.

Other CAD Energy Trusts we are watching for entries are… BTE, ERF, PDS, PVX & PWE

Coach BD

The NAZ has broken out on its Daily chart and is close on its Weekly.  However, both the DOW and S&P are not that close yet, and both are also looking weaker on their longer term trends.

With the NAZ leading the way the question becomes can it drag the others along with it, or… will the LT overhead resistance of the DOW and S&P doom the rally.  We think at this point that we will likely have to wait for earnings next month before this picture becomes clearer.

It looks like mostly sideways action for the near-term.

Coach BD

Today the USPTO confirmed validity of several RMBS Patent claims at issue, particularly and presently at issue with nVidia (NVDA).  This is extremely important because once the USPTO completes a reexam and confirms validity of any Patent or Patent Claim, it cannot be challenged again, including any legal actions, ongoing or otherwise.

However, the decision by the USPTO can be appealed to the CAFC but it is my understanding that less than 5% of appeals after a reexam has “confirmed” validity are successful even to the extent that the decision is sent back for further examination.  In other words, once the USPTO reconfirms a Patent’s validity through reexamination, it is extremely rare for a successful appeal.

On the other hand, when Patents are found to be invalid after reexamination, the appeal success rate is for the Patent holder is 80%+.

Very very good news.  The hits just keep on coming.

Coach BD

Following a significant sell-off during FEB QCOM raised its dividend today, causing a high-volume reversal.  We believe QCOM may have made its new low for quite some time yesterday @ ~$35.50

We would have liked to see QCOM close back above its downsloping 20-Day MA but we will be watching closely for a follow-up move back above this key ST resistance.  If successful, we would expect QCOM to make a slow and steady climb back into the mid-40’s.

Keep an eye on QCOM for a continuation of its reversal to the upside.

Coach BD

We are still looking for a VIX entry as a Mid-Term Portfolio hedge and at the 19 level we think this is an excellent entry point.  At this level we are confident that the downside is limited while there is a good opportunity for a substantial upside move prior to earnings season next month.

Coach BD

We are making an Add-ON entry to SNDK on today’s high volume BO.

BOUGHT - JAN 2012 - 20 Calls @ $15.37

SOLD - MAR 34 SHORT Calls @ $.69

BOUGHT - MAR 32/30 PUT Spreads @ $.60 (200%)

Coach BD

Raised its outlook for the 1st Quarter and is in the process of making a high-volume BO on its daily chart.  It is also breaking out on the Weekly chart and above overhead resistance from its 200-Week MA.  This is a very bullish move and we are going to make an Add-On to our Core position today.

We will update after 3:30 after we evaluate the closing strength and the appropriate entry.

Coach BD

Subsequently, we held off on our planned adjustments and VIX entry until we see if today’s late strength carries over into tomorrow.

Coach BD

Coach BD

We’ve been waiting for the VIX to hit the 20 level once again though we don’t like the chart.  We may well enter tomorrow if the markets bounce off resistance to the downside.

Update in the a.m.

Coach BD