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Humana $HUM Pulls Back, But More Upside Is Coming
In 2019, all of the leading managed health care stocks have been very volatile. Political pressure from both sides of the aisle have been the catalyst for the excessive whipsaw in this industry group. Stocks such as Humana Inc (NYSE:HUM), Cigna Corp (NYSE:CI), UnitedHealth Group Inc (NYSE:UNH) and others have been very susceptible to political news on a daily basis. Last week, the sector rallied sharply higher after the White House abandoned its plan to eliminate rebates from government drug plans. Unfortunately, these stocks are pulling back today after Presidential candidate Joe Biden proposes a public option for health insurance for anyone who wants it and will give power to Medicare to negotiate drug prices.
Last week, the managed health care stocks all broke out on a technical basis. Humana Inc (NYSE:HUM) is one stock that should have more upside despite today's pullback. Today, HUM stock is falling by $4.48 to $286.77 a share. Traders and investors should now watch and see if this stock can consolidate on the charts as last week's break-out pattern suggests a move back up to the $310.00 level. This major resistance level is where the stock sold off in late February 2019. I will be be keeping this leading heath care stock on my radar for a bullish pattern development.
Nick Santiago
InTheMoneyStocks
Surprisingly enough, even with the "Powell put" in play the yield on the 10-year U.S. Treasury note is just down 0.01 to 2.044%. One would think it would be falling more, but this is a market of dislocations. Thank God for the charts allowing us to see through the noise and make money! -Nick Santiago
Vmware Inc $VMW Keeps Dropping, Watch This Trade Level
VMware Inc (NYSE:VMW) is a leading cloud software stock that has been declining since mid-May 2019. The stock topped out on May 16, 2019 at $206.79 a share. Since that high pivot, the shares have declined lower by 21.0% and are now trading at $162.98 a share. Traders and investors should now watch the $150.00 area as major chart support. This level was where the stock broke out of a one month base in early February 2019. Often, when a stock declines into a past breakout level it will usually be defended by the institutional money when it initially hits the support area. I will now be watching VMW for a potential long side trade when the stock trades down into this level.
Nick Santiago
InTheMoneyStocks
Not All Health Care Stocks Are Created Equal, So Play It This Way $XLV
This morning, the leading health care stocks are trading lower to start the session. Politicians on both sides of the isle have been very critical of drug prices and health care costs. You can easily see and expect more political criticism of the health care companies as the Democratic party tries to find a 2020 nominee. President Trump has also vowed to lower drug costs, so where do you invest in this diverse industry group?
Despite today's declines in most of the major health care stocks the over chart pattern of the Health Care Select Sector SPDR Fund (NYSEArca:XLV) is still looking good on the charts. This leading health care ETF holds companies such as Johnson & Johnson (NYSE:JNJ), Pfizer Inc (NYSE:PFE), UnitedHealth Group Incorporated (NYSE:UNH), Merck & Co. Inc (NYSE:MRK), Abbott Laboratories (NYSE:ABT), Medtronic Plc (NYSE:MDT), Thermo Fisher Scientific Inc (NYSE:TMO), Amgen Inc (NASDAQ:AMGN), AbbVie Inc (NYSE:ABBV) and Eli Lilly and Company (NYSE:LLY). This ETF is fairly diverse and is still showing a decent chart pattern on the bigger time-frames. At this time, the XLV is trading above its 50 and 200- day moving averages. As long as the XLV remains above these key levels this ETF continues to be in good shape. Should a major decline occur in the XLV then there should be major chart support around the $86.00 area. This is where the ETF was defended in mid-April 2019 and would likely be support again if retested.
The bottom line is that health care stocks have become very difficult to trade and invest in on an individual basis lately. The best way to play the broad based industry group is likely through an ETF like the XLV. This ETF gives you diversity to the sector and holds some of the best companies in the world. Should the equity trade sideways or even lower it pays a 1.6% dividend while you wait for some appreciation to occur.
Nicholas Santiago
InTheMoneyStocks.com
Here's Another Market Conundrum, Cut Rates Or Don't Cut Rates?
This morning, the highly anticipated June non-farm payroll was released at 8:30 am ET. The report was much better than expected with 224,000 new non-farm jobs announced. The expectation was for 160,000 new jobs, so this was a hot number. Private payrolls also were better than expected with 191,000 new jobs, expectations were for just 160,000.
The S&P 500 Index has been soaring since June 3, 2019 when it traded as low as 2728.81. At that low, the Federal Reserve said it would do what was necessary to keep the expansion going. This comment fueled the S&P 500 Index to new all time highs. Recently, the markets have been surging higher on the back of weak economic data and the anticipation of a rate cut by the Federal Reserve later this month. Today's strong job number now puts the Federal Reserve in a tough position to raise rates. Bond yields on the 10-year U.S. Treasury Note are surging higher today by 11 basis points to 2.065%. Earlier this week, yields on the 10-year have been below the psychological 2.0% level.
In this bizarre stock market it seems that bad news is good news and good news is bad news. The European Central Bank (ECB) and the Bank of Japan (BOJ) both have negative rates already and this is a problem for their markets and economies. German economic data was very weak today as manufacturing orders dropped 2.2% month on month in May and down 8.6% from the same month in 2018. This is probably why the U.S. Dollar Index (DX) has been very strong over the past year or so. Weak European economic data will keep money coming into the U.S. Dollar.
The yield curve has now been inverted for about a month now. If yields on the 10-year U.S. Treasury Note rise then the markets will be less likely to price in a 50 basis point rate cut in late July when the FOMC meets again. Many traders and investors are banking on this cut by the central bank, hence the recent stock market rally on weak and bad news. Perhaps, the Federal Reserve will cut rates by just 25 basis points in late July. Will the markets be disappointed by this as it has already been expecting a 50 basis point cut? If rates rise significantly from here then it could signal that there might not be a rate cut at all in late July. That may not be good for stocks since they seem to be hoping and expecting more easy money policies by the central bank. Here we are again, the markets face another conundrum.
Nick Santiago
InTheMoneyStocks
This Day Trading Tip Can Save You From Bad Trades And Even Make You Lots Of Money
Who would not want to be a day trader? You wake up in the morning and go straight to your computer and start to look for stocks and equities that could make you money in minutes to hours. A day trader can basically work from anywhere with a decent internet connection. There is no dress code, so many day traders are actually trading in their pajamas every morning. You can also work as little or as much as you want, so you set your own schedule. It sounds like the worlds greatest profession, but without proper knowledge the average person who attempts the day trading world will not last a year in the business.
Day traders try to make money using two simple techniques. The first technique is called scalping, this is when a trader can isolate a stock declining or rising sharply into a major support or resistance zone. The trader will generally try to capture a small gain in the equity they are trading. The scalp play will usually last a few seconds to an hour depending on the particular equity, but the trade is expected to be done quickly and it usually involves a smaller time-frame chart. Then there is the day trade. This is where a trader will look at multiple time-frames and try to isolate a pattern that consistently plays out on the charts over and over. This trade usually last several minutes to several hours. Due to the fast trading action day trading can become very stressful and will require a lot of concentration. Most day traders will find a couple of chart set-ups that they favor and continually look for those patterns and setups to appear before executing a trade.
Today, I'm going to share one simple tip that can help save scalpers and day traders from daily heartache. I simply call this the light volume rule. Often, I find many day traders trying to sell short equities at a resistance level on the chart. While this is fine and usually a good way to make money it is very difficult to do under certain conditions. You see, as a day trader we must examine and take the pulse of the market everyday. We do this be looking at the volume in the SPDR S&P 500 ETF Trust (NYSEArca:SPY). You see, when the SPY volume is light it will generally favor market upside in the S&P 500, NASDAQ Composite and the Dow Jones Industrial Average stocks after 11:00 ET. I cannot tell you how many times a trader will try and short an equity around the lunch hour when volume starts to drop off. So here is rule number 1, if the SPY is trading less than 35 million shares by 12:00 pm ET please be careful trying to day trade equities on the short side, especially the SPY or S&P 500 e-minis contracts (ES-U19). There is simply a lack of institutional selling pressure when the volume is light. It should also be noted that the financial institutions move markets. It is not the person at home with an E-trade account watching fast money that moves the markets, it is the large financial institutions that carry the real power.
Traders and investors can easily look at this chart and notice that the market volume is extremely light. Please note, the low of the day was made at 11:00 am ET. Since that 11:00 am low the markets have slowly rallied higher, making any short trade very difficult. Hopefully, if you are new to day trading you will adopt this policy of monitoring the volume in the SPY every trading session. It has helped save many day traders from making a bad trade during the light volume part of the session. Hopefully noticing this important intra-day volume trend that has been working for years can also help you make a lot of money on your long side day trades.
Nicholas Santiago
InTheMoneyStocks
China Stimulus & Technical Analysis Says To Buy Nio Inc $NIO
Most of the investing public is running scared from shares of China electric car maker Nio Inc (NIO). However, after falling from a 52 week high of $13.80 to its current $2.58, investors may want to take a second speculative look. China stimulus is getting into the system and more is coming. In fact, China will be forced to compete with lower interest rates and additional stimulus from the European Central Bank, Federal Reserve and Bank of Japan. The government looks at electric cars as essential for the future power of China by eliminating smog in the major cities. Car makes like NIO will see additional help and support from the Chinese government. While deliveries have fallen lately, that is likely within a month or two of changing as the stimulus kicks in.
The trade deal, while it may go on for a little longer, will end. The end date will likely be prior to the 2020 elections. At 52 week lows, any hint of a cease fire or agreement between the United States and China will send shorts running. President Trump needs a win going into the election and a deal with China that stimulates the economy might be the one thing that could help him win (and he knows it).
On a technical basis, NIO Inc has already made a pivot low on June 14th at $2.35. After that low, the stock ran over $3.00 and is currently in a classic bull retrace. In addition, technical metrics like the RSI and MACD are showing positive divergences, signaling further upside is likely. The stock is still oversold on a monthly and weekly basis signaling there is still upside to go. I have a technical target in the next couple months of $4.35. That is a potential upside move of 70%. Hedge funds continue to hold large positions with a long term view. In the last two weeks, sellers have started to fade with volume becoming lighter while large block buyers have increased.
Please note, this is a speculative call on a small/mid cap stock. Any position should be small and part of a diversified portfolio.
Disclosure: Chief Market Strategist Gareth Soloway holds a long position in NIO Inc (NIO)
Gareth Soloway
InTheMoneyStocks
Oil Alert: 4 Factor Resistance Tagged
Oil surged higher in trading today after inventories showed a surprise drop. Continued tensions with Iran have added to geopolitical risk as well, pushing the price of the commodity higher. While the news seems bullish, near-term tops are made in this manner. Oil tagged four factors of resistance today. First, oil hit the daily 50 moving average on the $USO. Second, the USO tagged the daily 200 moving average. Third, oil tagged a major gap window on the USO chart and fourth, oil has a daily time count. This gets the top pro traders to inch into shorts here at the $60/bbl level or $12.43 on the USO. They are looking for a swing trade short (quick drop in price).
Gareth Soloway
InTheMoneyStocks
Watch this Technical Trade Level For Zoom Video $ZM
Zoom Video Communications Inc (NASDAQ:ZM) was one of the hottest initial public offerings (IPO) of 2019. The company came public on April 18, 2019 at $65.00 a share and was an instant success. ZM stock traded as high as $107.34 a share on June 20, 2019 before seeing some sharp selling over the past four trading sessions. Traders should note that the stock has a big gap fill on the chart at $79.43 level. Very often gap fills will serve as very good support when tested. This gap fill is actually stronger than most because it comes from a failed bearish pattern which will often signal very strong institutional sponsorship at that level. So traders should keep an eye on ZM stock around that $79.50 area.
Nicholas Santiago
InTheMoneyStocks
Forget FANG, This Stock Is The New Market Leader $MSFT
Almost everyday we hear traders and investors talking about the FANG stocks as the market leaders. While Facebook (FB), Amazon (AMZN), Netflix (NFLX) and Alphabet (GOOGL) are extremely important tech bellwethers, they are not leading like they have in the past. The new leader of the stock market is Microsoft Corp (MSFT). Microsoft's market cap is now above $1 trillion and the stock is making new all time highs. The trend is up for the stock, MSFT is also trading above every major moving average on just about every important time-frame. Microsoft is taking market share from these tech giants and others in a very quiet way. This is by far the most important stock to follow for leadership in the stock market right now.
Nicholas Santiago
InTheMoneyStocks
This Commodity Will Move After The FOMC Decision
As we all know by now, the Federal Open Market Committee (FOMC) will conclude their two day meeting this afternoon. Many economists are now expecting the central bank to cut the fed funds rate or indicate that they will cut the key interest rate down the road. Very often, the FOMC announcement will move markets and today is no exception. Gold has been moving sharply higher since the so-called Jay Powell put came into play in early June. This is when Fed Chairman Jay Powell stated he would not let the market fall before stepping in with more stimulus. The markets took this as a sign that the central bank was ready to cut interest rates and we have seen a very strong market rally in the month of June.
Gold (NYSEARCA:GLD) and gold mining stocks (NYSE:ARCA:GDX) have now broke out on this news and continue to remain very strong on the charts. Should we see a less dovish FOMC announcement then gold and gold miners are likely to retreat from current highs. After all, they are already short term overbought on the charts. Should the FOMC actually cut rates or come out with an extremely dovish forecast then gold and gold miners could see more upside near term. Either way, gold and gold miners have already broke out on the charts and should have higher to go in due time.
Nick Santiago
InTheMoneyStocks
Procter & Gamble $PG Retreats As Investors Appetite For Risk Increases
Procter & Gamble Co (NYSE:PG) is a leading consumer goods company that has been surging higher in 2019. Traders should note, PG stock bottomed in May 2018 at $70.73 a share. Since that low pivot, the stock has rallied as high as $111.75 a share made on June 14, 2019. Today, leading consumer goods stocks such as PG, KMB, SJM, CLX and others are declining lower on the session. It seems that traders and investors are selling the consumer goods stocks today on expectations of a lot of central bank stimulus and possible renewed negotiations between the U.S. and China. You see, the consumer goods stocks have been viewed as the safe haven trade with a lot of market uncertainty brewing since last year. This afternoon, PG stock is trading lower by $1.20 to $109.79 a share. Traders can watch the $104.00 area as very solid daily chart support. This is where the stock was defended on June 3, 2019 before making new all time highs. Should this level be retested it should be very solid support for another long side trade opportunity.
Nicholas Santiago
InTheMoneyStocks
This Is Where Smart Money Shorts Home Depot $HD
The verified top pro traders in the world are looking to short Home Depot (HD) at $205.50, based on a significant resistance trend line, shown in the chart below. This level gives off a high reward with limited risk as the technical signals are overbought. Look for a 15% drop in the stock off this level.
Gareth Soloway
InTheMoneyStocks
This Big Pharma Stock $LLY Is Dropping And Should Fall Further, Here's The Trade
Eli Lilly and Co (NYSE:LLY) is a leading pharmaceutical company that has been under pressure over the past couple of months. In fact, the stock topped on March 26, 2019 at $132.13 a share. Since that high pivot, the stock has declined by 14.0 percent and is currently trading at $112.84 a share. Traders and investors should note that LLY is now trading below its 50 and 200-day moving averages. This weak chart formation will usually signal further downside in the near term. The next key support level for LLY will be around the $105.00 area. This important level was defended in October and December 2018. Often, when a stock trades down to a major support area they will be defended again when initially retested.
Nick Santiago
InTheMoneyStocks
Gold Miners $GDX Are Breaking Out And They Have Higher To Go
This morning, all of the leading gold mining stocks are rallying higher to start the day. The highly followed VanEck Vectors Gold Miners ETF (NYSEArca:GDX) is trading up by nearly 2.0% on the session to $23.04 a share. The GDX is trading above its daily chart 50 and 200-day moving averages putting it in a strong technical position on the charts. The next major daily chart resistance level for the GDX will be around the $25.00 level. After that important resistance point the GDX is clear to run up to the $28.00 area. At this time, I'm looking to enter the GDX on the long side, but I'm waiting for a pullback or a consolidation pattern to form before jumping in. Often after a breakout an equity will usually need to digest some of the recent gains. Let's see if we can get that pattern over the next week or so. I will be keeping the GDX on my radar. Some other gold mining stocks that look strong on the charts include Newmont Goldcorp Corp (NYSE:NEM), Kirkland Lake Gold Ltd (NYSE:KL), Agnico Eagle Mines ltd (NYSE:AEM) and Royal Gold Inc (NASDAQ:RGLD).
Nick Santiago
InTheMoneyStocks
Chart Alert: Double Top Advanced Micro Devices $AMD
While average investors were clamoring to buy shares of Advanced Micro Devices (AMD) over the last few days, pro traders noted a major double top on the chart. This signaled a coming pull back which has already begun. Advanced Micro Devices topped out near $34.25, which matched the high pivot from September 13th, 2018. This was the double top. The stock has already pulled back to $32 and will head to a target of $29.75 before completing its downward near-term move. See the chart below.
Gareth Soloway
InTheMoneyStocks
Strong Short Signal: American Express $AXP
Shares of American Express (AXP) are putting off a multi-factor strong sell signal today. The stock chart started out with a squeeze higher only to reverse back to the lows. This is creating a topping tail on the daily chart that signals a sell. In addition, the American Express chart has a time count which also tells investor of a coming strong pull back. Based on the technical chart, the pull back is likely to hit target of $120 in the coming days. Pro traders are shorting the stock as a quick swing trade as well as buying puts. Note the chart below.
Gareth Soloway
InTheMoneyStocks
McDonalds $MCD Drops, Here's The Trade Level
Leading restaurant stock, McDonald's Corp (NYSE:MCD), has been a major winner in 2019. Unfortunately, today the stock is selling off sharply trading lower by $3.36 to $202.11 a share. It should be noted that MCD stock still remains in an up-trend and above all of its key moving averages. The stock has very solid daily chart support around the $194.00 level. This is where the stock pivoted on May 2, 2019. Often, when a stock is in this type of a strong up-trend it will be defended by the institutional crowd when the first important support level is tested.
Nicholas Santiago
InTheMoneyStocks
Keep This Level On The Radar for VMware $VMW
VMware Inc (NYSE:VMW) is a leading cloud computing software stock that has been under pressure recently. The stock topped out on May 16, 2019 at $206.79 a share. Since that high pivot, the stock has declined sharply and is now trading at $168.02 a share. Over the past four trading sessions the stock has been forming a bearish daily chart base above its important 200-day moving average. A weekly close below the 200-day moving average will likely cause another leg lower in the stock. Traders should note that the stock has major support around the $150.00 level. This important support area is a major retrace level and also a level where the stock broke out in February 2019. Very often, stocks will be defended at their prior break-out levels.
Nicholas Santiago
InTheMoneyStocks
Ambarella $AMBA Reverses Early Rally, Watch Out!
Last night, leading semiconductor stock, Ambarella Inc (NASDAQ:AMBA), reported earnings that seemed to be celebrated by investors on Wall Street. Unfortunately, the stock has reversed its early pre-market gains. The stock is now flat on the session trading at $39.75 a share. Traders should note that this stock has been weak since May 22, 2019 when news broke that the company could be adversely affected by tariffs and possible blacklisting with one of its largest customers. At this time, this stock looks poised to ultimately trade much lower on the charts. I will be waiting a few days to see how this pattern plays out before buying put options on this stock. The next major support level for AMBA stock will be around the $31.00 level.
Nicholas Santiago
InTheMoneyStocks
Cruise Line Stocks Sink, Here's Where This Stock $NLCH Is Headed
Today, all of the major cruise line stocks are falling lower on the session. The catalyst for the decline is due to the U.S. unveiling amendments to the Cuban Assets Control Regulations, banning educational and recreational travel. Stocks such as Norwegian Cruise Line Holdings LTD (NYSE:NCLH), Royal Caribbean Cruises LTD (NYSE:RCL) and Carnival Corp (NYSE:CCL) are all trading in negative territory today.
Norwegian Cruise Line Holdings LTD (NYSE:NCLH) is getting hit the worst today trading lower by 4.29% to $51.97 a share. The stock is testing its important 200-day moving average. A weekly close below this key support level would likely signal more downside in the near term. The next major support level for NCLH stock would around the $47.00 area. This level is where the stock broke out in late January 2019. It is also an important retrace level that should be defended by the institutional crowd.
Nicholas Santiago
InTheMoneyStocks
Gold Just Broke Out, Ominous Signal For Stocks?
Gold futures (GC) have been surging higher over the past three trading sessions. Traders that do not have access to the futures market can track and follow the SPDR Gold Shares (NYSEARCA:GLD). This popular ETF has climbed higher by more than $4.50 since May 21, 2019. The precious metal seems to be catching a serious bid since the stock market selloff has escalated late last week. Surprisingly, today the markets are bouncing higher and gold is still catching a very strong bid with spot gold (GC) up by $12.90 to $1324.00 an ounce . This tells me that investors want the precious metal for security and safety. It also signals to me that they do not really believe that today's stock market bounce is sustainable. Gold is the ultimate investment vehicle in times of fear.
Traders and investor should note that the GLD is getting short term overbought on the daily chart. This tells me that the pattern over the next week or two will be extremely important. Should a bullish pattern form then it could signal a potential move up in the GLD to the $130.00 level and possibly more. Remember this old rule, the best moves come from failed moves. Spot gold and the GLD just broke out of a daily chart downtrend and that is the way the markets talk to us.
Nicholas Santiago
InTheMoneyStocks
Here's A Leading Biotech Stock That Is Getting Attractive
Most of the leading biotechnology stocks have been very weak over the past couple of months. The SPDR S&P Biotech ETF (NYSEArca:XBI) and iShares Nasdaq Biotechnology ETF (NASDAQ:IBB) have both declined by more than 10.0 percent since early April 2019. Unfortunately for this industry group there looks to be more downside in the cards near term.
One particular leading biotech stock that has been under pressure recently is Amgen Inc (NASDAQ:AMGN). This stock traded as high as $196.87 a share on April 5, 2019. Today, the stock is trading at $168.72 a share, so traders and investors can easily see how this stock has declined so sharply in such a short time span. Shares of AMGN are now trading below their 200-week moving average. This puts the stock in a weak technical position and signals further declines to comes. The stock looks to have a lot around the $160.00 level. This is an area that should be defended when initially tested. It is also a level that was supported in June 2017 which is tells me that this trade area should provide a nice bounce for the stock.
Nicholas Santiago
InTheMoneyStocks
Alphabet $GOOGL Is Breaking Its Recent Low, Here's Where It Goes Next
Tech giant, Alphabet Inc NASDAQ:GOOGL), is now testing and breaking below its May 15th, 2019 low. This low in the stock was extremely important because the stock bottomed at $1121.40 a share and staged a $49.40 reversal closing at $1170.80 that day. The volume in that session was heavy with 2.9 million shares traded. Today, GOOGL stock is trading below that important low and that is a bearish indication for the stock. A daily chart close below the May 15th, 2019 low should ultimately send another sell signal to the stock. The next major support level for GOOGL stock will be around the $1045 level. This is where the stock staged a reversal in December 2018 and should be defended again by the institutional crowd when retested.
Nicholas Santiago
InTheMoneyStocks
Bed Bath & Beyond $BBBY Gap Fill Technical Support Nears
Shares of Bed Bath & Beyond (BBBY) have been grinding lower ever since the company surged on better-than-expected earnings. The down-draft has been sector wide as the consumer seems to be shopping less and only online. While Bed Bath & Beyond still had stellar results, it has been caught in general selling pressure. Having said that, there is a major gap fill approaching that is a strong buy swing trade. The level is $12.25 and about $1.25 away from the current price. At this level, Bed Bath & Beyond is expected to bounce sharply higher. I will be looking to buy at the $12.25 level in the coming weeks.
Gareth Soloway
InTheMoneyStocks
Lowe's $LOW Master Bounce Level Revealed
Shares of Lowe's (LOW) continue to fall sharply after their latest earnings report was horrid. The stock is down from a 52 week high of over $118 in April 2019 to its current $93.00 price. The exodus from the stock is getting overdone, but a swing trade bounce won't come into the stock until it tags $90. Once at $90, there is a multi-factor support level that will pop the stock to almost $100. Pro traders are eyeing $90 as a sweet swing trade level.
Gareth Soloway
InTheMoneyStocks
Lowe's Cos Inc $LOW Keeps Falling And It Can Go Lower
Lowe's Companies, Inc. (Lowe's) is a leading home improvement company. The Company operates approximately 2,370 home improvement and hardware stores in the United States, Canada and Mexico. Recently, the stock plunged sharply lower after reporting earnings that disappointed the street. Traders and investors should note that the stock actually topped out on April 17, 2019 at $118.23 a share. Today, the stock is trading lower by $2.13 to $93.21 a share. The stock is now trading below it's important 200-day moving average which puts the stock in a weak technical position. In the near term, the stock could have some short term support around the $90.00 area. Unfortunately, the bigger time frame charts are suggesting lower prices are still in the cards for LOW stock. The next major support level for the stock will likely be around the $75.00 level. This important support area is where the stock was defended back in September 2017, it will likely be defended again at that level when retested.
Nicholas Santiago
InTheMoneyStocks
Alibaba Group $BABA Target Swing Buy Level Approaching
Alibaba Group (BABA) shares are in free-fall as the trade war with China escalates. While Alibaba has little direct impact from tariffs, it is all about investor sentiment toward China stocks, and it is not good right now. Having said that, pro traders are taking note of a the massive fall in the stock and a major, multi-factor support level coming up at $155.90. There is a major gap fill here, pivot support and a 61.8% Fibonacci level. With these three technical levels in place at the $155.90, pro traders believe it will see a snap back bounce. They are looking to buy Alibaba as a swing trade there.
Gareth Soloway
InTheMoneyStocks
With earnings a week from Thursday, I like $KHC. Has a 5% dividend yield, Buffet owns a big chunk. Investors expect horrible news (expectations low). Stock trading at multi-year lows. Chart in extreme oversold area. It has all the makings of a bounce.
Gareth Soloway
InTheMoneyStocks
This Retail Stock $KSS Just Triggered The Mother Of All Head & Shoulder Patterns
This morning, leading retail stock, Kohls Corp (NYSE:KSS), is falling by more than 12.0% after reporting earnings that missed estimates. The stock has been weak since it peaked on April 24, 2019 at $75.80 a share. Today, KSS stock is trading lower by $7.41 to $55.46 a share. So it is easy to see how this stock is already very oversold at this time, but the pattern that is triggering today signals more downside to come. There is a big weekly chart head and shoulders pattern that has developed and is going to possibly trigger by the end of the week. Due to laws of symmetry the pattern suggests a potential decline down to the $35.00 level. Now please understand, these patterns take time to play out. They do not complete their potential declined in a single session, they take time to complete. Traders should also note that any pattern can fail at anytime, so if KSS closes above $60.00 on a weekly chart then this pattern is no longer valid and has failed.
Nicholas Santiago
InTheMoneyStocks
Semiconductor ETF (SMH) Tagging Multi-Factor Support
Shares of the Semiconductor ETF (SMH) are down again today as the trade war is red hot. Trading at $101.50, the SMH is now entering a multi-factor support area. First, the daily 200 moving average is here at $101.50. Next, the 50% Fibonacci retrace level from the December 2018 lows to the recent April 2019 highs is at $100.78. The fact that the Semi's are near-term oversold and hitting these two levels at the same time, gives a high chance of a strong bounce in the coming days. A bounce would likely take the SMH back as high as $110.00.
Gareth Soloway
InTheMoneyStocks
Alphabet $GOOGL Slides After Huawei Fallout, Here's A Level Everyone Should Know
This morning, the big news was that many leading tech companies would no longer support the Chinese mobile supplier, Huawei Technologies. Alphabet Inc (GOOGL) announced that they are suspending business with Huawei, they will no longer support its Android phone platform. This news has sent GOOGL stock lower by $22.64 (-1.90%) to $1145.98 a share. It should be noted that GOOGL stock has been weak since April 30, 2019 after they reported disappointing earnings. Recently, GOOGL shares were defended on May 15, 2019 at $1121.40 a share. In that trading session the shares surged higher by nearly $57.00, but have been pulling back since that day. Should the recent low in GOOGL ($1121.40) fail to hold as support it would send a major sell signal to the stock. The next major support level will be around the $1045.00 area for the stock. As of now, the stock is still holding firmly above that key level, but it is worth keeping on the radar.
Nicholas Santiago
InTheMoneyStocks
Bitcoin $BTC Target Price And Chart Analysis
The surge in Bitcoin (BTC) is fully underway. The move higher was a no brainer and I capitalized on it. My overall average is below $4,000 (though I did sell half of my crypto positions just on this latest surge). The one surprise for me was how easily it broke through the $6,000 resistance level. The $6,000 level now becomes support with Bitcoin trading near $8,000. The upside target near-term is now $10,000 and likely will be hit by year end, if not sooner. My thesis for why Bitcoin and other crypto-currencies are the future is strengthening by the day. Surging U.S. and global debt levels are unsustainable. The fact that central banks can print trillions-of-Dollars on a whim is and will erode the confidence people have in them. This will lead the world to a crypto-based monetary system, with caps on the amount that can be mined or the cost of mining will grow, slowing the amount of coins that are mined, much like it does for mining gold. I have long said, crypto is what our kids will be using as currency in 10-20 yrs. As a trader, I will be in and out of it quite often now, as it continues higher. However, I do believe in the long-term viability and future of the top coins.
Gareth Soloway
InTheMoneyStocks
Mylan NV $MYL Technical Signal Says Upside Near Term
Shares of Mylan NV (MYL) have collapsed in the last two weeks, falling from over $28/share to under $20.00/share. This drop is a continuation of the down-trend which started when the stock was $48/share in early 2018. While nasty and ugly, pro traders are starting to take interest after Mylan put in a strong bottoming tail yesterday. Bottoming tails are bullish reversal signals. This means there is likely a near-term pop in the stock. Based on technical charts, Mylan has upside back to $26 before running into major resistance. Pro traders are moving into the stock, looking for this pop.
Gareth Soloway
InTheMoneyStocks
General Motors $GM Rebounds Today, But Here's The Real Trade
This morning, all of the major stock indexes are rallying higher on the session. As we all know, the major stock indexes are currently short-term oversold from the recent sell off from a failed trade deal with China. One stock that is participating in the rally today is General Motors Co (NYSE:GM.) This stock has been declining since April 18, 2019 when it traded as high as $40.45 a share. Yesterday, GM stock tagged its important 200-day moving average around the $36.50 area. Today, that important support level is being defended and the stock is rebounding higher trading up to $37.22 a share. While this stock could trade a bit higher this week note that if the current U.S. / China trade deal runs into further headwinds more downside is imminent. Ultimately, I would get interested in GM stock around the $32.00 level. This is a spot on the chart where the stock was defended in January 2019 and will likely be defended again when tested.
Nicholas Santiago
InTheMoneyStocks
The Cannabis Stocks Are Dropping, Here's The One Stock I'm Waiting For $CRON
Many of the leading cannabis stocks have been declining recently. Canopy Growth Corp (NYSE:CGC) is the best of breed in the sector. This stock has held up the best in 2019. Tilray Inc (NASDAQ:TLRY) has been the worst performing cannabis stock in 2019. This stock remains in a down trend and there is really no sign of a bottom in sight yet. Aurora Cannabis Inc (NYSE:ACB) has been pulling back since March 19, 2019 and is not really signaling a buy level just yet on the charts.
The one cannabis stock that I would like to own at the right price will be Cronos Group Inc (NASDAQ:CRON). This stock has been falling sharply since February 4, 2019 when it traded as high as $25.10 a share. The stock is currently trading at $14.10 a share. Traders should note that the pattern on the chart is still very weak. CRON stock is trading below its 50-day moving average and that puts it in a weak technical position on the charts. There will be several support levels coming up for the stock in the near term, but the real institutional support does not show up until the stock reaches the 10.00 area. This is a level where I would look to aggressively own the stock. Please understand, it may take a little time for the stock to get down that low price point, but remember, patience pays.
Nick Santiago
InTheMoneyStocks