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Stitch Fix Inc $SFIX Tags Major Support Level, Buy Triggered
Shares of Stitch Fix Inc (SFIX) collapsed over 25% today on the back of poor earnings/guidance. The stock now finds itself trading below $20, down from a 52 week high of $52.50. While it appears to be doom and gloom there is some major light for technical traders. Stitch Fix tagged a major pivot low from June 2018 at $18.40 today. This pivot low signals a likely flush out of weak hands and the bounce signals accumulating by smart money. It would not be far fetched to see Stitch Fix trade back to $25 in the coming months.
Gareth Soloway
InTheMoneyStocks
The iShares U.S. Home Construction ETF (NYSEARCA:ITB) has been under sharp selling pressure since peaking in late January 2018. At that time, the equity traded as high as $46.56 a share, today the ITB trades at $30.83 a share. The current pattern on the charts is still weak and this could indicate a bit more downside before a solid low is formed. When I look back on the larger time-frame charts there should be good support around the $28.00 level. This support area is where the ITB consolidated in 2015 and 2016 before breaking out. Often, when an equity will back test a prior consolidation base it will serve as excellent chart support.
Nick Santiago
InTheMoneyStocks
Trading An EKG Market
Since the October sell off started these markets have seen extreme volatility. This is the complete opposite of what we saw in 2017 when the major stock indexes rallied straight up without a single 1.0 percent pullback session. These days, the markets can trade 1.0 percent or more within a few hours or less. As traders, we now have to adjust to the new environment of much higher volatility.
There are so many things causing these volatile markets. First, there is the Federal Reserve and the higher fed funds rate. The central bank has continued to raise interest rates as the U.S. economy started to strengthen, but that could be on pause soon after the next rate hike due on December 19, 2018. Second, there is the U.S. / China trade war. Yes, this is a trade war and it is still playing out right now. Markets are tired of the mixed messages and seem to be selling until there is a solid resolution. Third, the European problems continue to remain unresolved as BREXIT and the Italian budget issues remain front page news. Forth, there is the Robert Mueller investigation over Russian collusion and the Trump administration. Fifth, the democrats won the House of Representatives in the mid-term elections. This could lead to more investigations for President Trump in 2019. Six, the falling stock price in Deutche Bank (NYSE:BD) is signaling real trouble for the banking giant and maybe others around the world. Seven, the collapse of General Electric (NYSE:GE). This once iconic company is now a single digit equity trading under $7.00 a share. This hurts market sentiment as many investors had GE in their portfolios. There are also many other issues that seem to be pouring in from many other places.
Technical trading is now back in full force as people are now abandoning the fundamental picture. So here is the current technical outlook. The S&P 500 (NYSE:SPY) tested the $280.00 area on November 8th and December 3rd. From that technical resistance level the SPY has sold off and is currently breaking below its October 29th low today. There are two more pivot support levels that are now in play and they are the April 2018 lows at $254.67 and the February 2018 lows at $252.92. Most technical traders are watching to see if the institutional money will try and defend these key support levels. At this stage of the correction, traders must simply take it one day at a time. Traders must now also watch for high volume reversal days, that can sometimes signal a meaningful turning point and a possible bid for stocks. This is just one of many things to watch for when trading an EKG market.
Nick Santiago
InTheMoneyStocks
Citigroup $C Hits Two Factor Support Level
Shares of Citigroup (C) tagged an epic pivot support form 2015 today as well as the weekly 200 moving average. This two factor support puts the likelihood of a bounce at 85% in the coming month. At a current price of $58.85, investors can expect a bounce back to $64.00 in that time frame.
Gareth Soloway
InTheMoneyStocks
Health Insurance Stocks Tumble, Watch This Trade Level $HUM
Today, most of the leading health insurance stock are falling sharply lower. Leaders in the industry group such as Humana Inc (NYSE:HUM), WellCare Health Plans Inc (NYSE:WCG), United Health Group (NYSE:UNH) and others are all trading in negative territory. A couple days ago, a Federal judge voiced concerns over the DOJ's approval of CVS/Aetna merger. This news is the likely catalyst for the big decline in the sector.
Humana Inc(NYSE:HUM) is a leading stock in the health insurance group that is trading lower by $14.76 to $309.71 a share. This stock is now testing it's 200-day moving average. Should this stock close below this key moving average it would indicate lower prices ahead. The next major support area that looks attractive for HUM stock will be around the $290.00 level. This is where the stock broke out in May 2018 and should be very solid chart support when retested.
Nick Santiago
InTheMoneyStocks
Video Game Stocks Are under Selling Pressure, Here's The Next Trade $ATVI
As you know, all of the leading video game developers have been under selling pressure since October 2018. Video game developer stocks such as Activision Blizzard Inc (NASDAQ:ATVI), Electronic Arts (NASDAQ:EA) and Take-Two Interactive Software Inc (NASDAQ:TTWO) are all trading sharply lower again today. When a stock fails to catch a bid when the market is rallying it is usually a sign of further weakness.
Activision Blizzard Inc (NASDAQ:ATVI) is breaking its 200-week moving average today so this stock is now on my radar for further near term weakness. The next major support level that I see for this stock will be around the $40.00 area. This level is where the stock broke out in February 2017. Should ATVI stock back-test this level it should lead to a nice swing trade opportunity.
Nick Santiago
InTheMoneyStocks
In Quest $DGX Of A Trade Level
This morning, leading diagnostic testing and information services company to the healthcare industry, Quest Diagnostics Inc (NYSE:DGX), is falling sharply after lowering guidance. Quest Diagnostics Inc (NYSE:DGX) stock is dropping by 9.32 percent to $87.87 a share. The stock is breaking down from a bearish daily chart base and this indicates lower prices ahead. The next key support level that should be watched closely will be the $80.00 area. This is where the stock broke out of a monthly chart bullish base in 2017. Often, when stocks retest prior break-out levels it will be defended by the institutional money crowd.
Nicholas Santiago
InTheMoneyStocks
Valero $VLO Ignites Low Pivot With Bottoming Tail Formation
Shares of Valero (VLO) have likely put in an epic bottom. After making a new 52 week low in early trading, Valero staged a strong reversal. This reversal in price put in a major bottoming tail on the daily chart. This same chart signal appeared on Apple Inc (AAPL) just days ago before seeing the stock soar. Valero also has an added benefit of major daily support. Look for Valero to jump back to $90 within weeks.
[img]www.inthemoneystocks.com/images/posts/New%20Gareth/VLO11.28.2018.PNG
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Gareth Soloway
InTheMoneyStocks
Here's The Electronic Arts $EA Level That Every Trader Should Know
As we know, leading video game developer, Electronic Art Inc(EA), has been under some sharp distribution since July 2018. At that time, the stock peaked out at $151.25 a share. Since that high pivot point, the shares have tumbled down to the $84.40 level. EA stock is now trading below it's important 200-week moving average. This will usually indicate lower prices ahead for the popular gaming stock. One particular support level that has caught my eye will be around the $75.00 area. This is a prior scene of the crime support level from 2016. Often, these key levels will be defended by the institutional money when retested.
Nicholas Santiago
InTheMoneyStocks
Netflix $NFLX Headed Here Before Major Buy Triggered
Shares of Netflix (NFLX) are inching higher today as the markets float ahead of the G20. However, any upside in the next few days should be viewed with skepticism. The stock chart signals Netflix will head to $228.50 before putting in a long term bottom. That is almost another 20% downside before a screaming buy is triggered.
Gareth Soloway
InTheMoneyStocks
Tapestry $TPR Under Pressure, Watch This Trade Level
Tapestry, Inc., formerly known as Coach, Inc., is a leading design house of luxury accessories and lifestyle collections. The Company's brands include Coach, Kate Spade, and Stuart Weitzman. The stock has been under pressure since August 14, 2018 when it peaked on the daily chart. At that time, the stock hit a high at $54.35 a share. Since that peak the shares have declined sharply lower and are currently trading around the $37.25 level. Traders and investors should note that this stock is in a severe down-trend at this time. One support area that I will be watching closely will be around the $33.50 level. This is where the stock broke out in January 2016 and it will likely be defended again when retested.
Nicholas Santiago
InTheMoneyStocks
Buy The Dip Is Over, Now It's Time To Trade The Charts
A fair case can be made that since March 2009 investors could have bought every dip in the market and made money. In the 2008 recession the S&P 500 Index bottomed on March 6, 2018 at 666.78. Since that time, the S&P 500 has soared by more than 340.0 percent peaking on September 21, 2018 at 2940.91. In fact, the term 'buy the dip' became very popular and kind of a household term with traders and investors over the past few years due to this huge advance.
Now starting in October, we have seen a very sharp and nasty stock market correction taking place. Many investors and traders are calling this the start of the next great bear market. The new market saying that I have been hearing is sell the rips instead buy the dips. It's amazing how quickly things can change in the stock market. Over the past nine years, the trend has been your friend as almost every decline lead to a buying opportunity. In this environment, traders will need to find institutional support levels and then play the short term bounces. Until this recent stock market top it has been very difficult to sell the market short. Now in this environment, short selling is picking up and is a very good strategy if the correct pattern and resistance level can be found.
Technical trading will now be talked about much more at this time than when the stock markets just went straight up nearly everyday. Now you will start to see the talking heads in the financial media referring to Fibonacci retraces instead of P/E ratios. A simple moving average will now become more important than the book value of a company. The bottom line is that technical chart reading will be critical to know and understand once again. Especially, as the people in the financial media scramble to find a reason for the move in a particular stock or equity.
Nicholas Santiago
InTheMoneyStocks
An Epic Trend Line Worth Watching On Apple Inc. $AAPL
This trend line stretching back to 2012 is worth taking note of on Apple Inc. (AAPL). Based on its long-term strength, it is likely Apple will see major support around this $175.00 level and likely snap back to as high as $190. Note the chart below.
Gareth Soloway
InTheMoneyStocks
Home-builders Are Under Pressure Again, But Here's The Level For This Leading Stock $DHI
As we all know, the leading home-builder stocks have been under severe selling pressure since late January 2018. Higher interest rates have been the catalyst for the decline in the sector. The Federal Reserve continues to signal that they will continue to steadily increase rates to a more normal level as long as the economy is strong. This action should keep the home-builder stock somewhat depressed for a bit. Many of the leading home-builder stocks have now fallen so much that they are actually looking attractive.
One particular home-builder stock that I'm watching closely is D.R. Horton Inc (NYSE:DHI). This stock topped out at $53.32 a share in January 2018. Today, the stock is trading around $33.30 a share. Traders and investors should now watch the $30.50 area as the next major support level. This is where the stock staged a breakout in February 2017. Often, when stocks test past break-out levels they will be defended by the institutional money. This is where I will be looking to enter DHI stock on the long side.
Gareth Soloway
InTheMoneyStocks
Oil Crashes Into Major Support $USO
Oil is crashing today. It has been crashing since the beginning of October 2018. The Unites States Oil Fd LP (USO) topped out at $16.25 at the start of October but now trades below $12.00. This is an over 25% collapse in a month. Today looks to be capitulation with panic setting in. This means it is likely putting in a bottom for a bounce. The technical chart confirms this, showing major support at $11.85 and $11.70. I expect a major bounce back to $13.00 on the $USO.
Gareth Soloway
InTheMoneyStocks
Tyson Foods Flops After Earnings, Here's The Trade
Earlier today, leading food company, Tyson Foods Inc (NYSE:TSN), reported earnings that disappointed the street. The stock is trading lower by $3.50 to $58.09 a share. Traders and investors should note that the stock has been forming a bearish base on the larger times frame charts. This pattern still indicates further downside for the stock price. The next important support level that I see is going to be around the $52.00 level. This is where the stock was defended in January 2016 and it should be solid support when retested. The food company owns popular brands such as Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells and State Fair.
Nicholas Santiago
InTheMoneyStocks
Goldman Sachs $GS Bounce Level Revealed
Shares of Goldman Sachs (GS) have taken a nose-dive in the last week. Goldman was trading north of $230 just days ago, today it is below $210. A mix of worry over rates, the economy and their health have been the catalysts. Pro traders expect it to continue to fall to $199 before triggering a major technical support and bouncing sharply.
Gareth Soloway
InTheMoneyStocks
NASDAQ 100 $QQQ Upside Target & Short Trigger
The NASDAQ 100 is surging today following the Democrats retaking the House. The reason for the rally? Just days ago, President Trump threatened to file anti-trust cases against the big tech companies and claim they were monopolies. Investors believe that the Democrats will neutralize that threat in the near-term. As tech surges higher, investors should be ready to pull the trigger on the short side when price hits $178.00. This is a major technical resistance and all technical chart signals show another leg down in the market.
Gareth Soloway
InTheMoneyStocks
$SPY Stock Market Chart Level Alert...
The $SPY is stalling at the hourly 200-Moving Average $278.37 on the chart. As noted below, a 60-minute time frame close above this key resistance level will trigger a move to the $281.00 level. Watch the pattern over the next few hours.
Nicholas Santiago
InTheMoneyStocks
Kellogg Co $K Gets Chewed Up After Earnings, Here's The Trade
This morning, leading manufacturer and marketer of cereal and convenient foods company, Kellogg Co (NYSE:K), is trading sharply lower after reporting earnings. Kellogg (NYSE:K) stock is trading lower by 8.0 percent to $66.11 per share. The stock is now trading below it's important 200-day moving average which is generally viewed as a sign of weakness and further downside to come. The next key support level for Kellogg stock will be around the $62.00 level. This is where the stock was defended on June 2nd and it will likely be supported again when retested. Traders that are looking for a level to get into Kellogg stock on the long should watch this area closely.
Nicholas Santiago
InTheMoneyStocks
This Is Why Amazon.com $AMZN Likely Bottomed At $1,476 Today
Shares of Amazon.com (AMZN) has fallen 28% from its $1 trillion valuation day on September 4th, 2018. This monster fall wiped out hundreds of billions in market cap and sent investors running for the hills. However, smart money began accumulating today when Amazon.com broke below the $1,500 level. Why? Not only is the stock showing up as major oversold on multiple indicators (near-term) but Amazon hit a 50% Fibonacci retrace from the beginning of this mega move up (starting in September 2017). In other words, almost 1 year to the day, the up-move took place. We have now retraced 50% of that move. Smart money expects a bounce now back to $1,650 on Amazon.com shares.
Nicholas Santiago
InTheMoneyStocks
Watch This Key Trade Level For Microsoft $MSFT
Microsoft Corp (NASDAQ-MSFT) has been one of the leading tech stocks in 2018. Since the stock market correction began this tech giant has come under severe selling pressure. The stock peaked on October 3rd at $116.18 a share. Since that high pivot, the stock has declined down to the $102.20 level where it is trading today. It should be noted, MSFT stock is still trading above its important 200-day moving average which is at $100.68. Should the stock close below this key moving average then it would signal more weakness in the near term and further downside for the shares. The next major support level for the stock would be around the $95.00 level. This is where the stock was able to break-out of a choppy base in late May 2018. Often, the institutional money will defend a stock when it back tests a prior break-out area. Keep this level on the radar for a long side trade in MSFT stock.
Nicholas Santiago
InTheMoneyStocks
Shake Shack $SHAK Looks Yummy At This Trade Level
Leading restaurant stock, Shake Shake Inc (NYSE:SHAK), has been falling with the major stock market indexes lately. This is a stock that I have been looking to own at the right price or chart pattern, but it never seems to give me the setup that I have been looking for. At this time, I will be eying the $46.00 area. Currently, SHAK stock is trading around the $53.00 level, so it must still drop a bit more before reaching my level. The company is scheduled to report earning on November 1st, 2018. Should the stock decline down to the $46.00 level I would most likely to be a buyer around that area.
Nicholas Santiago
InTheMoneyStocks
Shares of Nvidia Corp (NVDA) have taken a cliff dive in recent weeks. A month ago Nvidia was trading above $290, it now sits at $210. This epic fall gives patient traders a great opportunity. The $200 level offers a key gap fill support point on an extreme oversold stock. Pro traders expect a BIG bounce here, likely 10-20% within weeks.
Gareth Soloway
InTheMoneyStocks
United Technologies Corp $UTX Retreats, Here's The Trade
Yesterday, leading Dow Jones Industrial Average component, United Technologies Corp (NYSE:UTX), reported earnings that was well received by the street. Unfortunately, the stock is giving back all of its gain from yesterday and is close to making new 3-month lows. The stock is now trading below its 50 and 200-day moving averages, this is a sign of weakness in the near term. The next important support level for UTX stock will be around the $120.00 area. This level is where the stock was defended in May 2018 and will likely serve as important support again when retested.
Nicholas Santiago
InTheMoneyStocks
3M $MMM Gets Slammed After Earnings, Know This Trade Level
This morning, leading industrial stock, 3M Co (NYSE:MMM), is trading lower by 6.25 percent to $188.05 a share. Earlier today, the company reported earnings that disappointed the street. There is also chatter that a stronger U.S. Dollar hurt the company's earnings.
Traders should note that 3M stock peaked out in late January 2018 at $259.77 a share. Since that high price in the shares, the stock has sunk lower by more than 27.0 percent. The stock is now trading below its important 50 and 200-day moving averages. While this is certainly a sign of weakness, the 200-week moving average was also tested and so far has held as support. A break below this key level on a weekly closing basis should signal more downside for the stock. The next major support level will be around the $170.00 area. This important support level is where the stock was defended in November 2016. Very often, when a stock back-tests a key pivot it will be defended by the institutional money.
Nicholas Santiago
InTheMoneyStocks
Bank of America $BAC Just Broke Down: Here Is The Target
Shares of Bank of America (BAC) broke major support today. Pro traders expect the stock to continue lower to the $25 pivot support level. Once there, a swing buy gives a high reward, low risk trade setup. A 10% bounce is likely off that level.
Gareth Soloway
InTheMoneyStocks
This Private Equity Stock Is On The Radar
The Blackstone Group L.P (NYSE:BX) is a leading private equity company that has fallen recently as the markets come under selling pressure. Traders and investors should note that BX stock topped out on September 24, 2018 at $40.60 a share. Today, the stock is testing its 200-day moving average at $34.38 a share. Should the shares break below the important 200-day moving average on a closing basis it would indicate near term weakness and lower prices ahead. The next key support level for stock would be around the $32.00 level. This area is where the stock was defended in July and would likely be a solid support area again when retested. I will be looking to Trade BX on the long side around this key support level.
Nicholas Santiago
InTheMoneyStocks
Even With The Markets Crashing, I'll Be Buying Stocks
As you all know, stocks are tumbling and volatility is soaring. Fear is now starting to creep into the marketplace. Traders and investors are now getting very defensive and doubting themselves when it comes to every move they make. This is natural and understandable when stocks fall so quickly. Now traders must start to look for major support levels on the charts for long side trades down the road. Personally, I have compiled a long list of equities that I would like to buy when my major support levels are reached. We do this by using the charts and the technical tools that tell us where the support levels are located. Learn to use the charts and eradicate the fear that cripples so many traders in volatile times.
Nicholas Santiago
InTheMoneyStocks
This Blood-Bath Decline Will Lead To Another Monster Buy, But Can You Spot The Turn?
Finally, we are starting to see a little fear on Wall Street. Yes, this could be the perfect storm. After all, we have yields rising on the 10-year U.S. Treasury Note, U.S. / China trade wars, a stronger U.S. Dollar, weak emerging markets and a never ending investigation against President Trump. There are actually even more worries in the pipeline, but these are probably the most important concerns that affect the stock market.
Traders and investors must now be patient and start to look for the potential opportunities to arise. We must realize at some point the Federal Reserve will probably stop raising interest rates. Eventually, the United States and the Chinese government will come to some type of an agreement on trade and intellectual property, both countries rely on each other for economic growth. The emerging market economies will find a bottom sooner or later, but this will probably be dependent on currency, interest rates and a few other factors. As for the investigation into the Trump administration and Russian collusion, while it gets more bizarre more the day and actually seems far fetched at this stage that it will turn into something major, this is still a wild card for the markets.
The bottom line is that the corporate tax rate in the U.S. is 21.0 percent. This makes the United States one of the most competitive countries in the world right now. Once these and other problems have some clarity and resolutions the markets in the United States should continue to expand. Now please understand, if these problems are not solved then there could be some real repercussions out there for the stock market. Until then, stay nimble and look for the charts that are signaling a bottom. After all, the S&P 500 Index is about 4.0 percent off the recent highs and still positive in 2018.
Nicholas Santiago
InTheMoneyStocks
Home Depot $HD Holds Support But For How Long?
Shares of Home Depot (HD) are still holding major support but top investors wonder for how long? The stock has hammered on a support trend line since April 2018. It has now tagged it four times. While still support, it is weakening. Projections show a near-term bounce, but limited to 3-5% maximum. The likely outcome after this near-term bounce is a sharp drop to $180.00.
Gareth Soloway
InTheMoneyStocks
International Paper Co (NYSE:IP) is a leading paper and packaging company with primary markets around the world. This stock peaked out in late January 2018 at $66.94 a share. Since that high pivot, the stock has been plunging and today it trades at $45.05 a share. This is a new 52-week low for the stock and many traders are now wondering where the bottom is for the paper products giant. The stock has now broken below its 200-week moving average which is a major negative sign for the shares. Traders must now look around the $41.00 area for the next important support level. This level is an important retrace level on the chart and a spot where the stock broke out in July 2016. Often, this combination will serve as an area that will be defended by the institutional money. Please note, the company will report earnings on October 25, 2018.
Nicholas Santiago
InTheMoneyStocks
Epic Buy Level On American Airlines $AAL Approaching
Shares of all airline stocks continue to tank as oil remains and multi-year highs. Shares of American Airlines (AAL) are trading near $34.50, down from a 52 week high of near $58. The fall in the last three weeks has accelerated as oil has spiked sharply. As average investors and funds run from airlines stocks, American Airlines has a major support and strong buy level emerging at the $33 level. Smart traders are licking their lips at this level. This is a multi-factor level with two chart signals pointing to major support. Add in an extreme oversold stochastics, RSI and other factors and there is the makings of a major bounce and buy.
Gareth Soloway
InTheMoneyStocks
Advanced Micro Devices $AMD Nears Key Bounce Level
Shares of Advanced Micro Devices (AMD) are almost $10 off their recent highs, a full 30% drop. As it craters, the weak investors go running but the smart traders are looking to buy. The key level is $25.20 for a swing trade bounce. This may be hit within a day or two.
Gareth Soloway
InTheMoneyStocks
Tesla $TSLA Keeps Driving South, Here's The Technical Trade
Tesla Inc (NASDAQ:TSLA) has been on a roller-coaster ride over the past few months. The electric vehicle (EV) maker peaked out on August 8, 2018 at $387.46 a share. Since that high pivot top the stock has gone through a lot of CEO drama and the shares have come under major distribution.
Today, TSLA stock is trading lower by $7.45 to $254.30 a share. The stock is now testing it's recent double bottom pivot made on September 7, 2018. A close below this key level will tell us that another leg of selling is on its way. One key support area that would interest me would be around the $217.00 level. This is where the stock was defended in January 2017 and likely a level to be supported again when retested.
Nicholas Santiago
InTheMoneyStocks
Key Near-Term Target On The NASDAQ 100 $QQQ
The NASDAQ 100 (QQQ) is taking a beating as investors exit stocks upon an interest rate surge. The NASDAQ 100 will likely continue to fall until it tags the $175 level. Once there, swing traders can expect a 'buy-the-dip' bounce for a week and likely a $5 point bounce. This is a technical PPT level, taking into account multi-factor signals.
Gareth Soloway
InTheMoneyStocks
Quick Bounce Trade Level On Home Depot $HD
Shares of Home Depot (HD) have collapsed in recent days. In the last month, Home Depot has fallen from $215 to $199. The top was put in, as predicted with hurricane Florence on the east coast. Big money sold into the hurricane hype and smartly so. With it falling so sharply, investors can look to the $197.90 gap fill level for a quick swing trade bounce. Note the chart below.
Gareth Soloway
InTheMoneyStocks