Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Chart Signal: Natural Gas $UNG Tops Out
As oil spiked higher on the disruption of Saudi oil, natural gas also got a sympathy spike. The major difference, natural gas tagged the daily 200 moving average and is currently putting in a bearish topping tail. This signals a near-term pull back in natural gas. Swing traders should look for a decline of at least 10% in the coming week or two.
Gareth Soloway
InTheMoneyStocks
Energy Stocks Pop, But The Trend Is Still Down, Here’s The Trade $XLE
This morning, all of the leading energy stocks are trading higher after an attack on an oil field in Saudi Arabia. Most leading energy stocks such as Exxon Mobil Corp (NYSE:XOM), Chevron Corp (NYSE:CVX), ConocoPhillips (NYSE:COP), BP Plc (NYSE:BP) and others are all trading sharply higher today on the back of this news. While crude oil and most energy stocks are strong today it should be known that the longer term trend is still down.
In fact, the Energy Select SPDR Fund (NYSEARCA:XLE) peaked in June 2014 at $101.52 a share. Since that high pivot, the popular ETF has been making lower highs on the charts. It is now trading at $62.66 a share. The next major resistance area for the XLF will be around the $68.00 level. That level is where the 50 and 200-week moving averages are currently at on the chart. There is also a pivot top resistance level in place from late April 2019. Traders should watch this key resistance level for a potential short trade or put option opportunity.
Nick Santiago
InTheMoneyStocks
Microsoft $MSFT Forms Nasty Bear Flag
Shares of Microsoft (MSFT) are putting in a nasty bear flag daily stock chart formation. Technical traders know that this signals a sharp downside move coming in the stock. Based on calculations, the downside technical target is $120.00. The flag pattern itself will trigger when Microsoft trades below $135.00 on a daily closing basis. Note the stock chart below. Investors and swing traders can short the tech giant on a close below $135.00. Based on the chart pattern, it should trigger within days. If the pattern fails, it will be noted by a close above the all-time high of $141.68. This is a great risk/reward setup. Upside risk is under $7, downside target is $15.
Gareth Soloway
InTheMoneyStocks
Semiconductor ETF Nears Double Top
Shares of the semiconductor ETF $SMH inched towards double top on the daily chart. This is a classic resistance point on any chart. Expect a pull back in the semi’s in the near-term once double top is tagged/pierced. Markets continue to hope for a trade deal and are factoring in one in now. The market is also expecting no US recession and an extremely accommodative Federal Reserve. With hopes high in all regards, expect the rug to get pulled next week into options expiration.
Gareth Soloway
InTheMoneyStocks
Sell: Apple $AAPL Hits Key Level
Shares of Apple Inc. (AAPL) tagged a major trend line connecting the last three pivot tops going back to April 2019. This likely means near-term resistance and a level to expect a pull back. I grabbed some $AAPL puts and added a swing short. While the line is getting pierced, it should not matter. Multiple metrics signal overbought. Add in the chart level tagged, the robot in me pulls the trigger.
Apple has been on a serious bull run as trade war relations have warmed in recent weeks. The stock was trading at $192 in early August 2019 and now sits above $225.00. Investors are banking on President Trump willing to give in on the trade detail to help his re-election campaign. Thus Apple nearing its all-time highs again. However, I am not sold on that and expect more hiccups before it is settled.
Based on the stock chart hitting the key trend line, I am expecting a pull back on Apple to $215.00 near-term. This is where I would likely take profits on my puts. I plan to hold the swing trade for a bigger move lower to $180.00
Gareth Soloway
InTheMoneyStocks
Here’s The Next Major Gann Level For Slack $WORK
Throughout my trading career I have been able to isolate a lot of tops and bottoms in the market. One of my primary tools for doing this has been by using the techniques from the legendary WD Gann. While I prefer to use conventional technical analysis along with Gann techniques sometimes when trading new issues there isn’t enough chart data to work with. In that case, I will often just use the Gann techniques as a stand alone method.
Recently, one of the hot IPOs, Slack Technologies (NYSE:WORK), has come under heavy selling pressure. The stock debuted on June 20th 2019 and traded as high as $42 a share. Since that day, the stock has plunged and is currently trading a $25.05 a share. Many traders and investors are now wondering where the stock could bottom. While we don’t have a lot of chart data to work with the Gann wheel tells me that the stock should find solid support around $20.50 level. Now I will be looking for a bottoming pattern when the stock reaches that price area. Stay tuned and keep Slack Technologies (NYSE:WORK) on the radar.
Nick Santiago
InTheMoneyStocks
Waste Management $WM Has Trashed This Week, Here’s The Trade
Waste Management Inc (NYSE:WM) stock topped out on September 5th, 2019 at $121.76 a share. Since that high pivot, the stock has declined by more than 7.0% to $112.26 a share. Traders should also note that the stock is now trading below its August 5th pivot which was a very strong support area. The stock is now getting a bit oversold on the daily chart so there will likely be some short term bounces, but lower prices are ultimately in the cards. One level that has caught my eye as major support is around the $102.00 area. This is where there is a major gap fill from May 31, 2019. There is also support from the 50-week moving average on the chart. This area should be solid for a long side swing trade in WM stock.
Nick Santiago
InTheMoneyStocks
Financial Stocks Rip, But Hit Resistance Here $JPM
Shares of JPMorgan Chase (JPM) and other banks/financial stocks surged for the third day in a row as interest rates spiked again. Higher interest rates mean more profit potential for the banks. While a beautiful bullish run, investors may want to temper their expectations of further near-term upside. JPMorgan slammed into a triple top today. This will likely result in a pause or consolidation period for up to a week before it can move higher. In addition, investors and traders will do well to remember the Federal Reserve meets next week on interest rates. This adds an extra layer of risk to the bank stocks. One wrong word from the Fed and banks could tank. If you are looking for further upside in JPMorgan, watch for a consolidation period (known as a bull flag). If this forms, there is significant upside to JPMorgan upon a break of the triple top.
Gareth Soloway
InTheMoneyStocks
Gold Miners Retreat, Where Is The Next Major Buy Level? $GDX
Recently, the leading gold mining stocks have pulled back from their recent highs. The Vaneck Vectors Gold Miner ETF (NYSE:ARCA: GDX) topped out on September 4th 2019 at $30.96. Since that high pivot, the GDX has pulled back to its 50-day moving average around $27.91. Traders and investors must now watch the $26 level to be tested. this level was where the last breakout took place and often the institutional money will defend this area initially when retested. Other support levels below the $26.00 area include the $24.00 and $22.00 levels. Obviously, the $22 area will be my ultimate buying opportunity. This is where the GDX broke out to the upside despite having a bearish weekly base on the charts in May 2019. This level is where the institutional money is heavily invested and where they will usually step in again to defend the equity.
Nick Santiago
InTheMoneyStocks
Electric Car Maker NIO Hammers Breakout
Electric car maker NIO Inc. (NIO) is hammering an epic breakout level. When it breaks, the stock has significant upside to $4.50 from its current $2.92 level. This is a beautiful stock chart setup for investors and traders who are looking for a big mover in the next few days/weeks. The key is watching for the breakout and then jumping on. It appears that the $3.00 wall in the stock is the breakout point. A daily stock price close above that level, sends NIO surging.
Gareth Soloway
InTheMoneyStocks
As Bond Yields Jump These Industry Groups Will Suffer As Others Gain
Today, yields on the 10-year U.S. Treasury Note and the 30-year US Treasury Bond are moving sharply higher. This move in bond yields will certainly affect many industry groups. Some of the sectors that will be negatively affected by higher bond yields include home builders, Real Estate Investment Trusts (REITS) and utility stocks. Obviously, these important sectors have been major winners in 2019. These industry groups should now be avoided as investments if yields continue to rise. Now please understand, a one-day move with higher bond yields does not make a new trend, but it is worth watching.
The big winner in the market if yields continue to rise will be the financial stocks. As you can see, stock such as JPMorgan Chase (NYSEJPM), Wells Fargo (NYSE:WFC), Bank of America (NYSE:BAC), Citigroup (NYSE:C), Morgan Stanley (NYSE:MS) and Goldman Sachs (NYSE:GS) are all having big moved higher in their share prices today. Other sectors that could benefit include insurance companies, brokerage firms and private lenders.
Nick Santiago
InTheMoneyStocks
Why Teva Pharma $TEVA Is A Screaming Buy
Dark clouds are hovering over Teva Pharma Industries (TEVA) but light is starting to shine through. Let me blow your mind with this simple analysis. First, let’s set the scene. On August 15th, 2019, Teva made a new multi-decade low at $6.07. Since then the stock has inched higher. Yesterday, news broke that Mallinckrodt (MNK), another opioid maker announced they may have to file for bankruptcy. In a 1 for 1 world, this should have been devastating for Teva, the worst news yet for the sector. Teva should have been crushed and taken out the $6.07 low from August 15th. However, it did not and has rallied sharply off the morning lows. This is VERY bullish for Teva Pharma.
The general rule states: When a stock does not make lower lows on worse news, accumulation in the shares is has started and is heavy (usually by institutions).
If big institutions are accumulating shares of Teva, thus not enabling it to make new lows, this is extremely bullish for shares of Teva Pharma Industries. It should signal a turning point in the stock and maybe for the sector. I could fill your head with lots of other things like countless technical indicators like MACD or RSI that are oversold. But the clearest signal is Teva not making a lower low on worse news for the sector. This is simple analysis but extremely effective. The upside target on this is $10 in the next month or so. A year from now, we could be talking about Teva at $25 or higher.
Gareth Soloway
InTheMoneyStocks
Roku Inc $ROKU Is Soaring, Where Is Resistance?
Leading internet streaming platform and device maker, Roku Inc (NASDAQ:ROKU), has been one of the hottest stock in the market for most of 2019. In fact, since August 6, 2019 the stock has soared higher by more than 70.0 points and currently trades around the $166.00 level. When trying to find and figure out how high a stock could go we can apply several techniques using technical analysis. One of my favorite tools to use is the Gann Wheel in combination with other technical chart patterns and tools. At this time, the Gann Wheel is telling me that ROKU stock could reach the $172.00 area. As you all know, the stock is already very extended and overbought, but the trend is up and it is very difficult to fight the trend.
Therefore, if you want to speculate on a pullback in ROKU it is best to play the stock using put options. This way you only risk a small amount of capital and can possibly capture a large percentage gain. Remember, a stock like this is certainly a take-over candidate so trying to short it outright presents too much risk in my opinion.
Nick Santiago
InTheMoneyStocks
Nasty Semiconductor Chart Pattern
The semiconductor ETF (SMH) has one of the nastiest bear flag consolidation patterns I have seen in years. This is signaling an extreme sell on the index and does not bode well for the stock market overall. Look for the semi’s to break lower in the coming weeks with a downside ultimate target of $95.00. Please note the stock chart below for the swing trade setup.
Gareth Soloway
InTHeMoneyStocks
Investing: Gold Analysis And Short Trade Level
Gold continues to surge higher, trading over $1,550/ounce. This bull run in gold is extended and I have isolated a technical resistance that warrants a strong short swing trade. Swing trades are generally 1-4 weeks long and look to capture a large move in the entity. The level on the GLD (Gold ETF) is $148.50. This is a major pivot point from 2011 and 2012. Look for price to pull back into the mid to low $130’s. I do want to make traders aware, I am a long-term bull on gold as well as crypto. It does not take a genius to see the end of fiat currency with the trillion-dollar-plus yearly spending of the government and the Federal Reserve printing trillions to get us out of every economic dip. While I trade short-term, I think long-term so i am prepared.
Gareth Soloway
InTheMoneyStocks
This Stock Still Has One Of The Best Charts In The Market
Almost everyday since late July we continue to see and experience a choppy and volatile market. Many sectors and industry groups are in bear markets already such as energy (XLE, OIH) and retail (XRT). Other industry groups are in raging bull markets such as the utility sector (XLU), commercial real estate (IYR) and consumer staples (XLP). This is certainly a difficult market to navigate, so traders and investors must be selective.
Many technology stocks are also mixed right now. Therefore, traders will need to turn to the charts to see what stocks look the best. One stock that continues to look good on the charts is Microsoft Corp (NASDAQ:MSFT). This stock is slightly off of its all time high made at $141.67 on July 26, 2019. Currently, MSFT stock trades around the $136.50 level. A fair case can be made that the stock is now trading sideways on the charts and is simply consolidating to move higher down the road. In environments like this it is important to isolate relative strength and MSFT is definitely showing very good strength at this time. I will be keeping this stock on my radar for a possible break-out candidate for later this year.
Nick Santiago
InTheMoneyStocks
Has Anyone Looked At The RV Stocks Lately? $WGO
It is really something when you look at the weakness in the leading recreational vehicle (RV) stocks lately. The charts for these stocks look absolutely terrible right now. There are three big companies that like to follow in the industry group and they are Winnebago Industries Inc (NYSE:WGO), Thor Industries Inc (NYSE:THO) and Camping World Holdings Inc (NYSE:CWH). All of these leading RV stocks peaked out in January 2018. Since that top, these stocks have really been under major selling pressure. THO and CWH are making new 52-week lows at this time and showing relative weakness.
WGO is a very weak looking chart, but it is much better than THO and CWH right now. This stock is at least off of its 52-week lows right now. So, if I want to buy a stock in this sector I would likely select WGO as it is showing relative strength compared to its peers. Currently, WGO stock is trading around the $31.85 level. The charts are telling me there should be more downside in the cards for this popular RV stock before finding major support. The only level that would be attractive for WGO stock is around the $25.00 area. This support level is where the stock broke out of a down trend in early 2019 and should be solid support when retested.
Nicholas Santiago
InTheMoneyStocks
Shopify Inc $SHOP Puts In A Huge Top Signal
Shares of Shopify Inc (SHOP) popped early, making a new all-time high at $401.16. However, within an hour, the stock was back to its lows of the day, putting in an epic technical topping tail. This is a major top signal for investors looking to short the stock. In addition, the brief cross of $400 as an even number adds fuel to the sell signal. Shopify Inc will likely fall to $340 in the near-term.
Gareth Soloway
InTheMoneyStocks
Bitcoin Alert: Here Are The Target Buy Levels $BTC
Bitcoin (BTC) briefly broke $10,000 again today. It has happened at least 5 times in the last month. This constant attack alerts technical traders that eventually it will flush lower. How low? Target 1 is $8,800 and target 2 is $7,575. These are the two levels I plan to accumulate at. I have been patiently waiting to rebuy Bitcoin since it topped out around $14,000. I am a believe in crypto as the future mainly because of the massive printing of fiat currencies by central banks and the increasing debt of countries like the United States. It is unsustainable and a collapse is inevitable. When the epic financial collapse finally comes, debts will vanish and central banks will be dissolved. From the ashes citizens will demand a currency with a defined print structure so governments cannot just print trillions on demand. While I am a believer in Bitcoin, I am also believer in having it as part of an overall portfolio, not the entire portfolio.
Gareth Soloway
InTheMoneyStocks
Align Technology $ALGN Has Been Hammered, Here Is The Trade Level
Late last month, leading clear aligner therapy stock, Align Technology (NASDAQ:ALGN), was hammered lower after reporting earnings that disappointed the street. The stock actually peaked out in September 2018 at $398.87 a share. It then made a lower high on the daily chart on May 15, 2019 at $334.64 a share. The stock is currently trading at $176.00 a share, but it remains in a weak technical position on the charts. The stock is now trading below its 200-week moving average which is a near term negative for the stock price. While the stock is currently oversold it is still signaling further downside before a solid bottom is formed. The one level that has caught my eye in the stock is around the $138.00 area. This level is where the stock actually broke out in May 2017. As you all know by now, I really like pullbacks into past break-out levels as institutions will generally support the equity around this area. Please note, ALGN stock generally trades less than 1 million shares a day, so it is always vulnerable to overshoot levels.
Nicholas Santiago
InTheMoneyStocks
Here's The One Stock $TWTR That Benefits From All This Geopolitical Chaos
As you all know, the current geopolitical picture is nothing short of chaotic. Every single day we hear about trade wars, Hong Kong protests, fighting between India and Pakistan, Middle East tensions, European debt problems and so much more. While all of these major geopolitical events can move stock markets and affect investor decisions: there is one stock that seems to benefit from it, Twitter Inc (NYSE:TWTR).
Everyone is using Twitter right now. The biggest user of Twitter is actually the President of the United States. We have trading algorithms that simply babysit every tweet that comes out of the White House. Stock markets move percentage points simply on the back of tweets almost everyday now. In fact, traders simply waits for a tweet from President Trump at 3:30 pm ET every single trading day when the markets are lower.
The current chart pattern for TWTR stock is actually pretty decent at this moment. The stock seems to be consolidating on the daily chart. The share price is still trading well above its 50-day moving average. This is showing much more relative strength than many other leading equities right now. TWTR stock still has a lot of resistance around the $44.50 to $45.00 level, but the longer the consolidation base the higher the stock could go. I'll be watching this pattern closely over the next couple of weeks as it has not given me a buy trigger yet, but it is on my radar now for more upside action.
Nicholas Santiago
InTheMoneyStocks
Short Signal: ROKU Inc $ROKU Topping Tail Alert
Shares of ROKU Inc (ROKU) likely put in a major pivot top today. After a three bar surge on the daily chart, the stock humped again today but is now putting in a possible topping tail. Topping tails are epic reversal signals, especially on charts in extreme overbought territory like ROKU. In addition, upside moves usually end on three bar surges. A pull back is likely in store to a target price of $115.00. This trade setup is pure technical analysis. This means there is finally a reason to short ROKU that has teeth. Cheers to the profits that members earn by getting trade setups like this at InTheMoneyStocks.com.
Gareth Soloway
InTheMoneyStocks
$ROKU Defies Gravity, But Big Resistance Looms...
Roku Inc (NASDAQ:ROKU) has been on a mission to move higher lately. The popular television streaming platform provider surged last week after reporting earnings. Today, ROKU stock is making new all time highs despite the major stock indexes staging a pretty good broad based sell off. ROKU stock is trading higher by $9.76 to $135.08 a share. While the stock is in a very strong up-trend it is now starting to look a big extended and overbought on the charts. Traders and investors should now watch the $150.00 level for major resistance. This resistance area is a level that is half way between $100.00 and $200.00, it often serves as excellent resistance when initially tested. When you combine this with the parabolic extension that the stock has had recently it should pullback from this level.
There has been a lot of chatter that ROKU stock could be a take-over candidate. So traders and investors must be careful when trying to sell short a stock like this. I will most likely look to buy put options on the stock should it trade up to the $149.00 - $150.00 area. This way if there is a take-over in the cards I will simply be risking the premium paid in the stock.
This coming Friday is options expiration for the month of August. It is a usually a trading week that is notorious for rumors, ridiculous up-grades and down grades and lots of other market makers shenanigans. So traders must be on their toes this week especially when trading stocks such as ROKU and many other popular stocks.
Nicholas Santiago
InTheMoneyStocks
Virtu Financial $VIRT Dives After Earnings & Support Is So Much Lower
Virtu Financial Inc (NASDAQ:VIRT) is falling sharply lower today after reporting earnings. The technology-enabled market maker is trading lower by 13.35% to $19.00 a share. The stock just broke the $20.00 level on heavy volume which was critical daily chart support. VIRT stock is now trading below all of its important daily chart moving averages. This puts the stock in a weak technical position on the charts and signals further potential downside. The next major support level for VIRT stock will be around the $15.00 area. This level is where the stock broke out in November 2017. Often, when a prior break-out level gets tested it will be defended by the institutional crowd.
Nicholas Santiago
InTheMoneyStocks
Wayfair $W Has Tumbled From Its Highs, Here's The Trade
Wayfair Inc (NYSE:W) is a leading home furnishing and décor website operator. This stock peaked out on March 21, 2019 at $173.71 a share. Since that high pivot in the stock, the shares have tumbled sharply lower. Currently, Wayfair (W) stock is trading at $121.04 a share. Unfortunately, the stock is in a weak technical position as it trades below its 50-week moving average. Traders and investor must now look lower for solid chart support. The next major support level for the stock should be around the $108.50 area. This level is where the 100-week moving average is located. It is also a level where the stock broke out in late January 2019. This level should be defended by the markets when it is initially retested.
Nicholas Santiago
InTheMoneyStocks
USD/CNY Spikes Over 7.00, And There Is More To Come
The currency market is once again the real judge of the stock markets. By now, most traders and investors know the USD/CNY is now trading at 7.0457. Over the weekend, China seems to have retaliated against the United States and its threat of increased tariffs. China is simply devaluing its currency to boost its exports to offset U.S. tariffs. This is a move that the U.S. has actually warned China about in the past. Reports are also out in the financial media that China will now suspend new US agricultural product purchases by Chinese companies. The current break-out pattern of the USD/CNY suggests that it will continue to climb into the 7.35 to 7.50 level. So get ready, this is not ending anytime soon.
Nicholas Santiago
InTheMoneyStocks
Prudential $PRU Tanks After Earnings, Here's The Trade
Today, leading insurance and financial services company, Prudential Financial Inc (NYSE:PRU), is falling sharply after reporting earnings. The company cited weakness in its life insurance and annuities businesses. PRU stock is declining lower by 8.85% to $92.34 a share. Traders and investors should note that the stock is now testing its June lows. A break of this level will signal further downside in the near term. The stock has also broken below its important daily chart 200-day moving average. This weakness tells me that the next major support level will be around the $87.00 area. This level is a major retrace level and an area where the stock broke out in mid-January 2019.
Nicholas Santiago
InTheMoneyStocks
Here's The Gold Playbook After The FOMC
Precious metals such as gold and silver have been very strong since breaking out in June 2019. As we all know, the major stock indexes rolled over in May, then they reversed course and surged higher after the Federal Reserve backstopped the stock market. Gold, silver and the mining stocks have been a direct beneficiary of the recent central bank's action.
This afternoon, the FOMC (Federal Open Market Committee) is expected to cut the fed funds rate by 25 basis points. This news is already priced into the market, but the language from the central bank is not baked in yet. If the Federal Reserve is extremely dovish then gold, silver gold miners should see more upside in the near term. Should the central bank come out and sound hawkish then the precious metals are likely to pull back and decline in the near term. Either way, the precious metals will be in play this afternoon.
Nicholas Santiago
InTheMoneyStocks
Cannabis Stocks Get Smoked And Have Lower To Go $CGC
This morning, most of the leading cannabis stocks are trading sharply lower on the session. Popular cannabis stocks such as Canopy Growth Corp (NYSE:CGC), Cronos Group Inc (NASDAQ:CRON), Tilray Inc (NASDAQ:TLRY) and Aurora Cannabis Inc (NYSE:ACB) are all trading down by more than 3.5% today. Unfortunately, all of these stocks continue to look weak on the charts as they are now trading below their important 50 and 200-day moving averages. This puts these stocks in a weak technical position and indicated lower prices ahead before finding a bottom
My favorite name in this industry group is Canopy Growth Corp (NYSE:CGC). In 2018, this company has received a multi-billion dollar investment from Constellation Brands (NYSE:STZ). Traders should note that CGC stock has been declining since March 2019 when it traded above $52.00 a share. The stock should have some solid support around the $30.00 area in the near term. It is also important to remember that the company will report earnings on August 14, 2019.
Gareth Soloway
InTheMoneyStocks
What Are The Central Bankers So Worried About?
Stocks in the United States have soared since June 4th, 2019. This is when the Federal Reserve Chairman, Jay Powell, basically backstopped the stock markets after a steep May selloff. At that time, he basically stated that the central bank would act appropriately to sustain the economic expansion. The next FOMC (Federal Open Market Committee) meeting will be on July 31, 2019. At this meeting, the central bank is expected to cut interest rates by at least 25 basis points. Some investors, analysts and economists expect the Federal Reserve could even cut rates by as much as 50 basis points at this next meeting. As you see, the stock markets have continued to climb on anticipation of further easing by the Federal Reserve.
Tomorrow morning, ECB President, Mario Draghi, is expected to announce some type of easing in the European Union. You can easily see that this is basically synchronized easing by the central banks around the world. After all, yields are already negative in Europe. What is the problem in the world that has these central bankers so worried right now? On July 8, 2019, Deutsche Bank announced another major restructuring that would layoff 18,000 employees. The bank has a massive derivatives book. This could become a big problem if one or more of the bank's counter parties collapse during a future crisis.
Is this the smoking gun leading to more easing by the Federal Reserve and the ECB, or is there something else lurking out there?
Gold has been soaring as investors and traders continue to buy precious metals. As long as the central banks keep their dovish outlook precious metals should continue to out perform. At this time, gold has been soaring higher despite a strong U.S. Dollar. Often in the past, when the U.S. Dollar has been strong gold has been weak, but not this time around. It seems that money keeps pouring into the U.S. Dollar from foreign countries. After all, Europe and Japan have negative rates and many investors are now losing faith in the Euro. So what is the play? Gold simply seems to be the logical winner in this environment. As long as central bank keep their dovish tone gold is the one asset class that should continue to benefit.
Nicholas Santiago
InTheMoneyStocks
Micron Tech $MU Nears Multi-Factor Short Sell Level
Shares of Micron Tech (MU) are up a whopping 50% in the last month. Investors are constantly wondering where to short this overbought semiconductor stock. The answer is, "not quite yet!". The stock is trading near $48/share and the top traders in the world plan on shorting it at $49.50. This level is made up of an epic gap fill and a measured move. Add in multiple extreme overbought indicators and swing traders have an amazing risk/reward short setup on Micron Tech (MU) at that level.
Gareth Soloway
InTheMoneyStocks
NIO Inc $NIO Starting Its Next Leg Up, Target $5.00
Shares of NIO Inc (NIO) ran from $2.30 to $4.00 recently. After two weeks of consolidation, the Chinese electric car maker appears to be headed for another big leg higher. With a beautiful bull flag on the daily chart, a necktie has also formed between the 20 and 50 moving averages. This adds extra spice the propulsion of NIO. The stock is surging today and likely will take out the $4.00 high, headed over $5.00. Note the chart below.
Gareth Soloway
InTheMoneyStocks
Sohu.com $SOHU Signals Reversal, 30% Upside Near-Term
Shares of Sohu.com (SOHU) are moving higher today, following a beautiful, classic bottoming tail yesterday. Bottoming tails are significant bullish signals This reversal in trend is major for technical traders as the Chinese stock is trading at multi-year lows. While the chart sets up for a surge back to $17.35 in the near-term, traders are particularly intrigued by its total cash per share of $47.97. To state this clearly, the stock is trading at $13.50 while it has a total of $47.97 in cash per share. To put this another way, the market cap of Sohu.com is $530 million while it has $1.88 billion in cash. Based on these metrics alone, this stock is a screaming buy. Just in the near-term, I have an upside target of $17.50. Likely achieved within a month.
Sohu.com is a marketing/media company in China. Sentiment has gotten way too negative on this sector partly because of the China slowdown but also because of the on-going trade war. As most analyst will tell you, the trend war will likely be over before the US presidential election in 2020. In addition, the amount of stimulus thrown at the Chinese economy by the Chinese government has been huge. This will start to trickle down into business spending. At the current valuation, Sohu.com makes a ton of sense as a bottom play with significant upside potential.
Disclosure: Chief Market Strategist Gareth Soloway from InTheMoneyStocks.com owns shares of Sohu.com (SOHU).
Gareth Soloway
InTheMoneyStocks
Toll Brothers $TOL Struggles To Catch A Bid, Watch This Level
Leading home-builder stock, Toll Brothers Inc (NYSE:TOL), has been steadily declining since peaking in mid-May 2019. At that time, the stock was trading as high as $39.58 a share, but has been slowly falling lower on the charts. Today, TOL stock is trading below its important 200-day moving average. This is usually a sign of further weakness for the shares in the near term. Traders and investors must now look around the $30.00 area for major chart support. This is where the stock was defended in October 2018 and also where the stock reversed a sharp weekly down-trend. This level will likely be solid support when initially retested.
Nicholas Santiago
InTheMoneyStocks
Epic Short Level Nears On Apple Inc $AAPL
Shares of Apple Inc (AAPL) continue their march higher as more investors jump on the bull bandwagon. With a P/E ratio approaching the high end of the mature company historic levels, investors need to turn their attention to the charts. The chart tells investors that $AAPL has surged from a low in June of $175 to a current high of $206. This monster move signals an overbought situation, but not a defined short signal. That short signal comes to fruition if/when $AAPL trades to $211.75. At this price, the chart shows an epic gap fill plus a double top. This two factor short signal will likely surge investors well for a large drop in the stock price. A near-term pullback to $193 should be seen within weeks of this level being tagged.
Gareth Soloway
InTheMoneyStocks
Euphoria Is Back In The Semi's, This Is Where I Short $SMH
The Semiconductor ETF (SMH) continues to be strong after Apple (AAPL) received some upgrades (semi's are the supply chain for iPhone's). As the SMH surges higher, a gap fill looms large on the daily chart at $117.65. Once achieved, I plan on buying the SOXS (3x Short Semi ETF). I am a believer there is still weakening to go in the global/domestic economy and the semi's are over-priced. With an overbought SMH and the technical gap fill, this is the spot. I Look for as much as a 25% correction in most semiconductor stocks from this level.
Gareth Soloway
InTheMoneyStocks
Alert: KLA Corp $KLAC Nears Technical Short Level
Shares of KLA Corp (KLAC) have surged since June from a pivot low of $101 to its current $125.50. Technical signals are now entering extreme overbought but pro traders think there is one more push higher. The technical short signal is at $128.50. At this level ($3 away) KLA Corp will tag a major gap fill and double top. This will trigger the highest reward/lowest risk short trade for investors. Note the chart below.
Nick Santiago
InTheMoneyStocks
Railroad Stocks Fall Off The Track $CSX
Today, most of the leading railroad stocks are declining sharply lower after a very weak earnings report from CSX Corp (NYSE:CSX). The company said it expects revenue to fall by as much as 2.0% in 2019. Prior to this report, the company was forecasting an increase of 1.0 to 2.0%. Currently, CSX stock is declining lower by $8.52 (-10.50) to $71.05 a share. CSX stock is now trading below its 200-day moving average, this puts the stock in a weak technical position. Traders and investors must now watch for further downside in the coming days and weeks ahead. The next major support level for CSX stock will be around the $65.00 area. This level is where the 100-week moving average is currently and should be defended when tested. Other railroad stocks that are falling in sympathy to CSX Corp include Norfolk Southern Corp (NYSE:NSC), Union Pacific Corp (NYSE:UNP) and Kansas City Southern (NYSE:KSU).
Nicholas Santiago
InTheMoneyStocks
Goldman Sachs $GS Pops After Earnings, Here's Where It Hits A Wall
This morning, leading financial stock, Goldman Sachs Group Inc (NYSE:GS), is trading higher after reporting earnings. The financial giant is trading higher by $2.77 to $214.35 a share as investors celebrate the company's results. Many traders and investors are wondering how high could GS stock go before it stalls out. After all, the stock has been rising since June 3rd when it traded as low as $180.73 a share. Traders and investors can easily see that the stock will face major resistance around the $220.00 area. This key resistance level is where the stock broke down on volume back in early November 2018. Often, when a stock retraces back up to its former break down level it will be met with major selling pressure. Remember, there are traders and investors that have been holding the equity from that time and will usually look to get out of the stock when given the chance to get back to break-even.
Nicholas Santiago
InTheMoneyStocks