5 Stocks Under $10 Making Big Moves

DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

>>5 Stocks Set to Soar on Bullish Earnings

Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.

Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.

>>5 Breakout Trades to Take Ahead of the Fed

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside today.

Body Central

Body Central (BODY) is a multi-channel specialty retailer that operates apparel stores and also conducts direct business via catalogues and Web site. This stock closed up 3.2% to $6.43 in Tuesday's trading session.

Tuesday's Range: $6.18-$6.43

52-Week Range: $6.00-$13.39

Tuesday's Volume: 418,000

Three-Month Average Volume: 279,597

>>5 Stocks Rising on Big Volume

From a technical perspective, BODY jumped notably higher here with above-average volume. This stock gapped down sharply recently from $12 to under $8 with heavy downside volume. Following that move, shares of BODY went on to make a new low at $6 with bearish downside volume flows. That move has now pushed shares of BODY into oversold territory, since the stock's current relative strength index reading is 32.42. Oversold can always get more oversold, but it's also an area where a stock can experience a powerful bounce higher from.

Traders should now look for long-biased trades in BODY as long as it's trending above that recent low of $6 and then once it sustains a move or close above some near-term overhead resistance at $6.48 with volume that hits near or above 279,597 shares. If we get that move soon, then BODY could experience a sharp oversold bounce that takes this stock back towards $7.75 to $8.50.

Dynex

Dynex (DX) is a real estate investment trust that invests in mortgage loans and securities on a leveraged basis. This stock closed up 2.2% to $8.68 in Tuesday's trading session.

Tuesday's Range: $8.51-$8.69

52-Week Range: $7.71-$11.06

Thursday's Volume: 454,000

Three-Month Average Volume: 473,773

>>5 Rocket Stocks to Buy as Mr. Market Climbs

From a technical perspective, DX spiked notably higher here with decent upside volume. This stock has been uptrending strong for the last month, with shares moving higher from its low of $7.71 to its intraday high of $8.69. During that move, shares of DX have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of DX within range of triggering a major breakout trade. That trade will hit if DX manages to take out its 50-day moving average of $8.82 and then once it clears its gap down day high from July at $8.86 with high volume.

Traders should now look for long-biased trades in DX as long as it's trending above some near-term support at $8.25 and then once it sustains a move or close above those breakout levels with volume that hits near or above 473,773 shares. If we get that move soon, then DX will set up to re-fill some of its previous gap down zone from July that started just above $9.75. Any high-volume move above that level will then give DX a chance to tag its next major overhead resistance levels at $10.24 to $10.44.

Inventure Foods

Inventure Foods (SNAK) develops, produces markets and distributes snack food products and frozen berry products. This stock closed up 2% to $9.68 in Tuesday's trading session.

Tuesday's Range: $9.39-$9.72

52-Week Range: $5.56-$9.74

Thursday's Volume: 75,000

Three-Month Average Volume: 52,442

>>5 Stocks Ready for Breakouts

From a technical perspective, SNAK rose modestly higher here right above its 50-day moving average of $9.25 with above-average volume. This move pushed shares of SNAK into breakout territory, since this stock took out some near-term overhead resistance levels at $9.45 to $9.59. Shares of SNAK are now quickly moving within range of triggering another major breakout trade. That trade will hit if SNAK manages to clear some near-term overhead resistance at $9.69 to its 52-week high at $9.74 with high volume.

Traders should now look for long-biased trades in SNAK as long as it's trending above 50-day at $9.25 or above more near-term support at $8.95 and then once it sustains a move or close above those breakout levels with volume that hits near or above 52,442 shares. If that breakout triggers soon, then SNAK will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $12 to $13.

Marchex

Marchex (MCHX) is a mobile performance advertising company that delivers customer calls to businesses and analyzes those calls so companies can get the most out of their advertising. This stock closed up 4.4% to $7.48 in Tuesday's trading session.

Tuesday's Range: $7.21-$7.48

52-Week Range: $3.41-$7.58

Thursday's Volume: 106,000

Three-Month Average Volume: 83,781

From a technical perspective, MCHX spiked sharply higher here right above some near-term support at $7 with above-average volume. This stock has been uptrending strong for the last five months, with shares moving higher from its low of $3.70 to its recent high of $7.58. During that uptrend, shares of MCHX have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of MCHX within range of triggering a major breakout trade. That trade will hit if MCHX manages to take out Tuesday's high of $7.48 to its 52-week high at $7.58 with high volume.

Traders should now look for long-biased trades in MCHX as long as it's trending above its 50-day at $6.60 and then once it sustains a move or close above those breakout levels with volume that hits near or above 83,781 shares. If that breakout triggers soon, then MCHX will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at $8.76 to $9.55, or even $10.

MGIC Investment

MGIC Investment (MTG) is a provider of private mortgage insurance in the U.S. This stock closed up 2.3% to $7.54 in Tuesday's trading session.

Tuesday's Range: $7.33-$7.58

52-Week Range: $1.34-$8.16

Thursday's Volume: 6.21 million

Three-Month Average Volume: 8.35 million

From a technical perspective, MTG bounced notably higher here right above its 50-day moving average of $7.14 with lighter-than-average volume. This stock has been trending sideways for the last month, with shares moving between $6.75 on the downside and $7.45 on the upside. Shares of MTG have now started to take out the upper-end of that range on Tuesday, since the stock closed at $7.54. This move is quickly pushing shares of MTG within range of triggering a major breakout trade. That trade will hit if MTG manages to take out some near-term overhead resistance levels at $7.84 to its 52-week high at $8.16 with high volume.

Traders should now look for long-biased trades in MTG as long as it's trending above its 50-day at $7.14 and then once it sustains a move or close above those breakout levels with volume that hits near or above 8.35 million shares. If that breakout triggers soon, then MTG will set up to enter new 52-week-high territory above $8.16, which is bullish technical price action. Some possible upside targets off that breakout are $9 to $10.

To see more stocks that are making notable moves higher today, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


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At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.


Time Warner Cable and CBS Kiss and Make Up — Dueling Press Releases

From CBS Corp. (NYSE: CBS):

CBS Corporation (NYSE: CBS.A and CBS) and Time Warner Cable and Bright House Networks have reached an agreement for carriage of CBS owned stations on Time Warner Cable systems across the country, as well as Showtime Networks, CBS Sports Network and Smithsonian Channel, it was announced today by representatives for the companies. Programming on all networks will resume at 6:00 PM, ET today.  Though specific terms of the deal are not being disclosed, the agreement includes retransmission consent, as well as Showtime Anytime and VOD, for CBS stations on Time Warner Cable systems in New York (WCBS and WLYW), Los Angeles (KCBS and KCAL) and Dallas (KTVT and KTXA.)

From Time Warner Cable Inc. (NYSE: TWC):

We can't even tell you how happy it makes us to write this:

Our long, frustrating blackout with the CBS Corporation is now over. We have reached an agreement that returns CBS and CBS-owned programming to your channel lineup. We're restoring the programming as fast as we can – everyone will have it back within the next 24 hours.

As in all of our negotiations, our main goal was to hold down costs and retain our ability to deliver a great video experience for our customers. We're pleased that we successfully achieved both.

We know these disputes are frustrating, and we're sorry they have to happen. But we hope the short-term pain is worth the long-term gain of keeping your costs down and providing the best possible viewing experience.

It's also really encouraging that over 50 consumer organizations and legislators have joined us in calling for Congress and the Federal Communications Commission to reassess the 21-year-old rules that allow this sort of broadcaster brinksmanship to happen in the first place. We hope that Congress and the FCC will pay attention to this growing call to action and reform these outdated laws.

Nobody likes it when fights like these happen – not the networks, not our customers, and certainly not our hardworking employees who absorb a lot of understandable frustration until these get resolved.

But most of all, we'd like to thank our customers for their patience, loyalty and understanding. Without customers, we wouldn't have a business – and that's why we fight to keep costs as low as possible.

U.K. Stocks Drop as U.S. Jobs Data Signals Fed Tapering

U.K. stocks declined, paring their biggest weekly gain in six months, after better-than-estimated U.S. non-farm payrolls data stoked speculation the Federal Reserve will begin to reduce the size of its asset purchases.

BHP Billiton Ltd. (BHP) and Rio Tinto Group, the world's biggest mining companies, fell at least 3 percent. Whitbread Plc (WTB) dropped 2.8 percent after UBS AG downgraded the owner of the Costa Coffee chain. British Land Co., the U.K.'s second-largest real estate investment trust, advanced 1.2 percent after saying it bought commercial property in London for 470 million pounds ($707 million).

The FTSE 100 Index (UKX) slid 46.15 points, or 0.7 percent, to 6,375.52 at the close of trading in London, paring its weekly advance to 2.6 percent, the most since Jan. 4. The gauge has still lost 6.8 percent since the Federal Reserve signaled that it may start to taper its stimulus program if the U.S. economy improves in line with its forecasts. The FTSE All-Share Index slipped 0.7 percent, while Ireland's ISEQ Index tumbled 1.6 percent today.

"The short-term trend in payroll growth is back near 200,000 and right at the Fed's perceived bogey," Tom Porcelli, chief U.S. economist at RBC Capital Markets in New York, wrote in a note. "While we still think October is most likely when the Fed will announce tapering, this report means an increased risk of an earlier taper."

U.S. Employment

Treasury yields rose to the highest level in almost two years after a U.S. Labor Department report showed that employers hired 195,000 workers in June, compared with the 165,000 median forecast of economists surveyed by Bloomberg. Payrolls in May also rose a revised 195,000, from an earlier reading of 175,000. The unemployment rate stayed at May's level of 7.6 percent. Economists had projected 7.5 percent.

BHP Billiton retreated 3.6 percent to 1,666.5 pence and Rio Tinto dropped 4.4 percent to 2,636 pence. A gauge of mining shares in the FTSE 350 tumbled 4.6 percent, the most in two weeks. Fresnillo Plc declined 5.8 percent to 886.5 pence as the price of silver, the metal it produces, fell in London.

Whitbread slipped 2.8 percent to 3,106 pence after UBS lowered its recommendation on the shares to neutral from buy, saying the retailer's new initiatives do not change the near-term earnings outlook.

A gauge of banking shares in the FTSE 350 Index reversed earlier gains, declining 0.5 percent. Standard Chartered Plc (STAN) fell 1.8 percent to 1,470 pence and Royal Bank of Scotland Group Plc lost 2.6 percent to 276.7 pence.

British Land increased 1.2 percent to 591.5 pence after saying it bought buildings and development sites near London's Paddington Station from Aviva Plc and other investors. The company said it will own about 1 million square feet (93,000 square meters) of Paddington Central's 1.6 million-square feet space once the development is completed.

Redrow Plc (RDW) rallied 3.2 percent to 245.6 pence as Deutsche Bank AG increased its 12-month share-price estimate and profit forecasts for 2013 and 2014. The U.K. builder yesterday jumped the most in five months after saying pretax profit for the year ended June will beat analysts' estimates.

What "Free" Financial Advice Really Costs You

Many investors believe that financial advice should be free. Although many professionals are happy to oblige with what they call free advice, those who follow their recommendations often pay an unseen price for that guidance -- and the dubious quality of that financial advice can lead to poor results.

The hidden way you pay for financial advice
The money management industry knows that if you have to pay money up front to get an appointment with a stockbroker or financial advisor, you're a lot less likely ever to set up that appointment in the first place. Yet they also know that the brokers and advisors who drive sales in the business need to get compensated, and money managers rely on those salespeople in order to gather assets under management.

To solve that problem, financial professionals have traditionally relied on commissions. Those charges can take a number of different forms, ranging from clear and concise fee schedules for certain services to less obvious means of funneling compensation to advisors. For instance, Morgan Stanley (NYSE: MS  ) and Bank of America's (NYSE: BAC  ) Merrill Lynch unit charge minimum stock commissions well above what you'd get at self-service discount brokers, with Merrill having raised its minimum fees for stock purchases from $50 to $75 last year. Morgan Stanley's Choice Select program has sliding tiers based on the volume of trades you perform, with fees ranging from 0.60% to 2.25%.

With commissions, at least, it's clear that you'll pay for financial advice at the time you make an investment. But other less obvious fees also lurk underneath the surface. For instance:

With some advisor-sold mutual funds, front-end sales loads act like commissions, diverting a percentage of your initial investment to cover the cost of paying the salesperson who sold you fund shares. But other classes of funds can tack on an annual charge, some of which can go to compensate financial professionals on an ongoing basis. Over time, those recurring annual charges can exceed what you'd pay on an up-front commission. In addition to mutual fund marketing-related fees, funds often have revenue-sharing arrangements with the financial companies that sell fund shares. Under those agreements, the fund might agree to compensate the selling company for expenses like investment research and subscription services. Such soft-dollar incentives lead the professionals working for you to direct their business to those funds, even when they might not always be the best solution for your particular needs.

Asset-based fees
An arguably better way to pay for financial advice comes from asset-based fee-only arrangements. With these models, you pay a percentage of the total assets your advisor manages for you. As long as the arrangement is fee-only, rather than simply fee-based, you won't see commissions come out of your account.

The benefit of fee-only financial advice is that you know up front what you're going to pay. Yet again, there's not necessarily any correlation between the amount of your fee and the service you receive. One customer might have a tenth the assets of another yet need more guidance with their finances, and in such a case, the less affluent customer would get much greater value for the fee they pay than the more affluent customer.

The old-fashioned way to pay
Paying an hourly rate or fixed dollar amount for financial advice isn't all that common, but when you think about it, it makes the most sense. That way, what you pay is directly tied to the service you get. It also gives you an incentive to build your own expertise so that you don't have to rely as much on the professionals you work with.

For many investors, professional financial advice is something worth paying for. But don't cheat yourself by paying too much without even realizing it. When free advice seems too good to be true, rest assured that you're paying for it somehow.

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The Conundrum of a Rising Rate Environment for U.S. Banks

Banks have become quite adept at protecting margins in today's super low rate environment. But with nowhere for interest rates to go but up, are U.S. banks prepared for the inevitable shift higher?

The risks in interest rate spreads
Deposits and loans remain the core business of the modern bank. During times of changing interest rates, loan and deposit rates reset at different intervals -- and deposits generally reset faster. Therefore, as rates rise, the money banks pay to depositors -- their interest expenses -- will increase faster than the money they collect from loans -- their interest income. If this happens, expenses will rise faster than income, squeezing margins until rates stabilize.

Big banks have the advantage
Larger and more sophisticated banks, such as Bank of America (NYSE: BAC  ) , JPMorgan Chase (NYSE: JPM  ) , and Wells Fargo (NYSE: WFC  ) , have an advantage in this process.

Because of their size, these institutions can invest in more derivatives, swaps, or other contracts to mitigate the risks of a rising rate environment. While many smaller institutions do invest in hedges for interest rate risk, the complexity and cost of fully managing that risk can be prohibitive. With their scale, the large banks can devote human and capital resources to units solely focused on hedging risk.

Bank of America, for example, generated $10.9 billion in net interest income (income less interest expense) during the first quarter on a 2.43% net interest margin. JPMorgan yielded $10.9 billion as well with a similar 2.37% margin, while Wells generated $10.7 billion from an impressive 3.48% margin. As rates rise, expect the big banks to maintain this income-producing ability as they all have world-class hedging units tasked to offsetting interest rate risk.

Without the scale of the larger banks, it's more difficult for smaller institutions to allocate human and capital resources to build hedges that mitigate the risks of a changing rate environment.

Source: FDIC Quarterly Q4 2012.

Furthermore, these larger banks tend to offer additional products and services that produce non-interest income. These bolt-on businesses, from corporate treasury services, investment banking, and advisory services for businesses, to insurance, wealth management, and real estate services for consumers, can mitigate a decline in earnings on the loan side of the bank.

Of Bank of America's total revenue, 46% is attributed to net interest income. JPMorgan attributes even less with 43%, while Wells Fargo is more dependent on net interest income with 49% of total revenue coming from loans. For smaller institutions, these ratios tend to skew much higher. The chart below from the FDIC Quarterly Q4 2012 report paints the picture; large institutions generate more than double the non interest income as smaller institutions, even as a percentage of assets.

One certainty
Eventually, interest rates will go up. When they do, it will mean the U.S. economy is most likely in a self-reinforcing recovery; that the employment market is on the mend; and therefore, that consumers are on better financial footing.

It will also mean that the banks will be working to protect net interest margins, a challenging task for any institution. But the big banks -- the Bank of Americas, the JPMorgans, the Wells Fargos -- that are best suited to the task. If you want to invest in this sector, look to the big banks with the sophistication, scale, and diversified incomes to ride out the transition in interest rates better than their smaller competitors.

Many investors are scared about investing in big banking stocks after the crash, but the sector has one notable stand-out. In a sea of mismanaged and dangerous peers, it rises above as "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's new report. It's free, so click here to access it now.