Molycorp Inc (NYSE:MCP) is trading at 52 week lows and hated by most investors for its poor performance. While the markets trade near all time highs, this stock has fallen throughout 2014. That may be about to change. Commodity stocks in all sectors have started to catch a big bid. Look at stocks like ConocoPhillips (NYSE:COP) in the oil sector or Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) in the copper and gold sector. They are all taking off to the upside. One of the few commodity sectors that has not started to run is rare earth mineral plays. This is the bread and butter for Molycorp Inc. At a current price of $2.55, it is priced at almost bankruptcy levels. This can be looked at as a high risk but also very high reward play. Commodities are hot and likely to get hotter.
2014 has been a somewhat of a sour note for investors of Pandora Media Inc (NYSE:P). This year the stock of the internet radio company has been all over the map. It came flying out of the gate with a price surge eclipsing the $40 level ($40.44 to be exact). It was up some 52% in a little over 2 months, which was on top of the nearly 200% gain it had in 2013. All shareholders were singing a happy tune all the way to the bank.
Then on March 5 of this year the music came to a screeching halt. All of sudden this can't miss social media stock, which was constantly being rumored to get taken out by various tech companies, couldn't seem to find "that loving feeling" from investors. Shares of Pandora Media Inc (NYSE:P) got smacked down hard to the tune of almost 47%! And as always, the pendulum, which had been on the side of the bulls for so long, clearly swung the other way in favor of the bears.
This equity put in a bottom in late April at $21.47 and has slowly clawed its way higher and is actually positive for the year. Now before we all get ready to jam and rock out on the bullish side, lets take a look at the chart below. As you can see the stock remains below its daily 200ma and is into a big resistance level, not to mention a 38.2 fibonacci retrace. This tells us that Pandora Media Inc (NYSE:P) is still singing the blues.
This morning, share of the home-furnishing retailer, Bed Bath & Beyond Inc (NASDAQ:BBBY) are getting slammed lower after reporting quarterly result that were lower than expectations. The popular retail stock is declining lower by $5.61 to $55.50 a share. Traders and investors should note that the stock is now trading below its important 50-week moving average. Anytime a stock falls below this critical moving average it is generally a sign of sharp institutional distribution. Traders will now have to look at the chart to find the next near term support area for the stock. In December 2012, Bed Bath & Beyond Inc stock traded as low as $54.33 before reversing and trading to new all time highs earlier this year. This tells us that the $54.00 area will be the next near term support level for the stock. Should that support level fail to hold Bed Bath & Beyond Inc stock will have more support around the $48.35 level. This support area was a break-out point in 2011. Often, past breakout points will serve as excellent support levels when retested.
Did you know that San Diego, California is the drone capital of the United States? The proper name for a drone is unmanned aerial vehicles (UAV). Northrop Grumman Corporation (NYSE:NOC) is the maker of the Global Hawk surveillance drones which are manufactured in San Diego, California. The other large manufacturer of drones is General Atomics Aeronautical Systems Inc. Both of these companies employ thousands of people. Experts have stated that drone-related businesses in San Diego County generate as much as $2 billion in annual revenue and have created as many as 14,000 jobs. Believe it or not, due to classified projects these numbers could actually be much higher. The drone business is only expected to grow as companies such as Amazon.com Inc (NASDAQ:AMZN), Facebook, Inc. (NASDAQ:FB), and other tech firms plan on using drones in the near term future. The FAA estimates that 30,000 drones will be flying in the United States by the end of the decade, so this industry is just getting started.
Northrop Grumman Corporation (NYSE:NOC) stock looks very strong by forming a long sideways base on the weekly chart. This tells us that the institutional money is accumulating the stock at this time. Any close above the $126.00 level on volume is a likely breakout play for the NOC stock.
Monsanto Company (NYSE:MON) reported earnings this morning. The agriculture chemical maker beat on earnings but missed on revenues. Monsanto initially shot higher, Wall Street cheering the results and investors eager to buy. However, since the initial push higher, it has fallen substantially and is putting in the technical signal called a topping tail. A topping tail that occurs at the highs of a chart has a high probability of being a long term pivot to a bigger down move. The key here is to monitor Monsanto and at the close today, confirm it is a topping tail. If it is, look for substantial downside in the coming months. [more]
One of the most popular stocks among investors, Apple Inc. (NASDAQ:AAPL), has once again been hyped up, only to leave many holding the empty bag. The media hype surrounding talks of new highs in the price of Apple Inc. (NASDAQ:AAPL), has caused many to chase the stock, hoping to get a bite out of the move higher. Let's call this the "Luis Suárez Strategy." Going "Suárez" on a stock, buying into the hype, eating up the news and allowing that to dictate what trades you take is always a bad move.
Some of the hype surrounding Apple Inc. (NASDAQ:AAPL) included the prospect of getting in ahead of the stock split; which certainly seemed attractive to the average investor. However, if you utilized technical analysis, you would have dismissed this hype and shorted AAPL like we advised our members right after the split. Considering the technicals of AAPL, it was clear that there was nothing to "Suárez" at that time, instead it was a clear short.
If you are not clear on the AAPL split and why that occurred, the rational for this is very simple. A high priced equity such as Apple Inc. (NASDAQ:AAPL) turns away many retail investors as they feel that they cannot buy many shares, which decreases the general public's involvement in the equity. To seem "cheaper" and more attractive to retail investors is one big reason why companies do splits. But in the end, the stock does not get "cheaper" and you will only be holding more paper of the same equity, instead of more gains.
No sooner after the split, Apple Inc. (NASDAQ:AAPL) started to fall, even as the markets pushed higher. At that time, the institutions were able to feed their shares right into the people that do not understand the dynamics of the stock market - those who follow the "Suárez Strategy" and were looking to take a bite out of the stock based on the hype behind it and nothing more.
Now, Apple Inc. (NASDAQ:AAPL) has been pulling back from a key resistance area around the $95.00 level. The equity has more room to fall and should not be bought at current levels. Note the chart below...
If you want to take a "Suarez," or bite out of Apple Inc. (NASDAQ:AAPL) at the best level, watch $85.21 as it should give you an opportunity for earning a quick gain. The next and major level to watch will be the $80.00 area, depending on how Apple Inc. (NASDAQ:AAPL) gets there. These levels will both present the smart trader and investor with an opportunity to trade AAPL at the right time. However, you must always consider other technical factors once the stock reaches those levels to confirm that the odds of winning remain in your favor.
Recently, the gold and gold mining stocks have surged higher over the past three weeks. The highly followed Market Vectors Gold Miners ETF (NYSEARCA:GDX) jumped higher by more than $4.00 a share since May 29th, 2014. Today, the Market Vectors Gold Miners ETF is trading lower by 0.37 cents to $25.90 a share. The GDX is now overbought on a daily chart, so a pullback over the next couple of days to weeks should be somewhat expected. While a pullback is possible, traders and investors must now keep an eye on the weekly inverse head and shoulder pattern that is forming on the chart. A weekly chart close above $26.00 a share on the Market Vectors Gold Miners ETF would trigger a buy signal for the pattern. The target for the bullish inverse head and shoulder pattern indicates a move up to the $35.00 area. [more]
It seems like a lifetime ago when the markets were in a state of panic and despair. We all remember the historic market crash of 2008, when bulls of the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) were running for the hills and no one wanted to go long again. After weeks and months of red on the ticker, the markets, and S&P 500 in particular found a low of 666.79 in March 2009 Since that low was put in the markets have been on a steady rise higher.
The S&P 500 had such a tremendous climb, that it managed to gain an astonishing 105% (704 points) in just 3 years! That is pretty incredible for any individual stock to accomplish such a feat, but for an index to do that, is almost unheard of. After the bulls of the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) were up triple digits in percentage terms, that is when the S&P 500 suffered a viscous and much needed correction; declining 21.5% (296 points) from 1370.58 to a low of 1074.77 on October 4, 2011.
Since that October low the S&P 500 has been back on the steady path higher. It blew past the October 2007 high of 1576.09 and seems to be making new all time highs on a daily basis. The S&P 500 seems to have the 2000 level in its cross hairs. In fact if the market keeps climbing to 2000.37 to be exact, it will be up 200% from the lows in March 2009. What I find interesting is that the S&P 500 is nearing the second century of gains in percentage terms. If this feat is attained, we might be in store for a much needed correction, kind of like the one we received in the summer of 2011. With that being said, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) bulls appear ready to party all the way to 1999.
Coach Inc (NYSE:COH) is taking a beating today, falling 10%. Concern over competition is taking its toll as sales estimates are being dropped. Where is the bottom? Let's explore. The first significant daily support level is $33.50. At this point the stock should have a solid multi-day, maybe even a multi-week bounce. Longer term, be careful with this equity as it may continue its slide. View this only as a swing trade long at that level. [more]
Netflix, Inc. (NASDAQ:NFLX) is fast approaching its 52 week highs at $458. This is what traders refer to as a major double top. A major double top is established when a stock puts in 52 week high and then tumbles over 25%. Netlifx, Inc. tumbled 35% before the recent rebound. Essentially, this means that there are a lot of bagholders that bought at the highs and have been wishing and hoping it comes back to that level so they can sell for a break-even. As Netflix inches closer to the $458 level, these sellers will begin to dump. This will likely cause a retrace back down to the tune of 38.2%, a Fibonacci level. This retrace would take the Netflix, Inc. back to $400.00 and be a great profit opportunity as a short from current levels. [more]
Solar stocks like SolarCity Corp (NASDAQ:SCTY) are ripping higher today. All alternate energy stocks should be on high alert because of this move, including fuel cell makers which are possibly the next sector to go. Two fuel cell makers that should be on watch are Plug Power Inc (NASDAQ:PLUG) and FuelCell Energy Inc (NASDAQ:FCEL). Both are trading at recent lows and may catch a bid in response to the massive spike in solar stocks like SolarCity Corp. Put these on your watch list for a potential move sharply higher. [more]
This morning, leading integrated energy stock Exxon Mobil Corp (NYSE:XOM) is declining lower by 0.86 cents to $102.07 a share. The stock looks to be pulling back from a double top resistance area on the daily chart from May 8, 2014. It should be noted that Exxon Mobil Corp stock is still trading above its daily chart 20, and 50-day moving averages. This puts the stock in a strong technical position despite the decline in the stock today. Day traders should watch for solid intra-day support around the $101.50 level. This is an area on the chart where day traders could expect institutional sponsorship and intra-day bounce. [more]
The fattest cat on Wall St. seems to be flying a bit under the radar these days. Wells Fargo & Co (NYSE:WFC) has been quietly rising to become the biggest banks in the world by market cap during 2014. Surprised? Well check out these stats...
Considered one of the most conservative banks in the United States, Wells Fargo & Co (NYSE:WFC) has moved up from fourth in the rankings of world's largest banks by market cap in April of 2013, to number one during 2014. The market cap of Wells Fargo & Co (NYSE:WFC) is now almost three and a half times the market cap value of the all mighty, Goldman Sachs Group Inc (NYSE:GS).
Wells Fargo & Co (NYSE:WFC) has had an amazing come back from the Financial Crisis of 2007; it is now number one, with more than fifty billion separating it from the number two, JPMorgan Chase & Co. (NYSE:JPM).
Recently, the media has started to pick up on this and the hype surrounding the name increases by the day. However, as traders all we are concerned with is should we be buying or selling the equity now. More importantly, where will Wells Fargo & Co (NYSE:WFC) be trading a few months or even a year from now.
Perhaps you missed the move WFC has had, now you are considering buying it. Well, lets look to the chart to tell us where the best place to enter this trade would be...
By doing some simple trend line analysis, we can see that Wells Fargo & Co (NYSE:WFC) has come into some major historical resistance as noted in the monthly chart above. Pretty much anyone looking at this chart would agree that this equity is extremely extended and should not be bought at current prices. In fact if Wells Fargo & Co (NYSE:WFC) closes at or below $51.00 by the end of June, it could be considered as a potential short candidate depending on other technical factors in consideration at that time.
The price level for those interested in buying and holding Wells Fargo & Co (NYSE:WFC) for a longer term move will be $41.18. If the stock should fall into this level without any consolidation above, it will represent a natural correction level, and buying opportunity. Remember that only a few years ago this equity traded as low as $7.80, you do not want to be the one holding the bag as institutions slowly begin to take their profits.
Cliffs Natural Resources Inc (NYSE:CLF) had a reversal candle on Friday. This would be seen in the strong move up on Friday after the stock made a new 52 week low on Thursday. It often spells a reversal in stock price in the near term and can lead to great profits. Cliffs Natural Resources is a coal stock and is in one of the most hated sectors in the whole market. If you are a contrarian, this is also a positive as Cliffs Natural Resources. Based on the current price action this stock should be on high alert for a buy. [more]
This morning, leading apparel retailer Michael Kors Holdings LTD (NYSE:KORS) is trading lower by $2.64 to $91.23 a share. It should be noted that Michael Kors Holdings stock is now trading below the important 50-day moving average. This is an important level for technical traders. Often, when stocks trade below their 50-day moving average it is a sign of weakness in the near term. Many money managers will not buy stocks that are trading below this key moving average. Day traders can now watch for intra-day chart support around the $90.00 level. This is an area on the chart where day traders should expect an intra-day bounce. [more]
Summer is the time of year when people like to really kick off their shoes and relax. It's a time when families pile into the car, take to the highways and head to that much anticipated summer vacation. A time when people like to fire up the BBQ and grill up their personal favorites. This is the season when people want to get out and really enjoy different activities. However, these days, getting out and enjoying what life has to offer comes with a price.
As many of you may or may not know, the US consumer makes up about 70% of the economy. That's a pretty hefty dependence on people going out and spending money. And spending is what many retailers SPDR S&P Retail (ETF) (NYSEARCA:XRT) are hoping for this summer, as they went through one of the coldest winter's on record. So with the Polar Vortex squarely in the rear view mirror, the pent-up consumer should be ready for that long awaited spending spree, right? Well not so fast, just as one nemesis in old man winter was put in hibernation, another foe in high Crude Oil (United States Oil Fund LP (ETF) (NYSEARCA:USO) has emerged.
So far not too many people are talking about high oil prices as this is seen as a temporary surge because of the new uncertainty in Iraq. However, we all know that its a matter of when, not if the pain will be felt at the pumps. Once the consumer starts to feel the pinch from high gas prices, it will inevitably hurt retailers SPDR S&P Retail (ETF) (NYSEARCA:XRT) as it always does.
Below is a chart of the SPDR S&P Retail (ETF) (NYSEARCA:XRT) showing not only the under performance of the retail sector, but some areas of support and potentially good opportunities to put on a long trade. So with the official start of summer and sun just days away, the retail sector might just be left out in the cold yet again.
Delta Air Lines, Inc. (NYSE:DAL) and United Continental Holdings Inc (NYSE:UAL) have collapsed over the last two days. Both stocks are down over 10% from their recent highs. Delta Air Lines and United Continental Holdings Inc have more downside to go before they see a quick, sharp bounce. If played correctly, this bounce can pay you big money. [more]
One industry group that is soaring higher today is the natural gas stocks. It seems that the tensions and problems in Iraq are escalating, this is causing a bid in many of the leading natural gas stocks. Some of the leading stocks in the sector that are trading higher today include Devon Energy Corporation (NYSE:DVN), Southwestern Energy Co (NYSE:SWN), Chesapeake Energy Corporation (NYSE:CHK), and Patterson-UTI Energy Inc (NASDAQ:PTEN). Traders should note that this important industry group is starting to get overbought on the daily and weekly charts. This tells us that if the current geopolitical events around the world calm down the natural gas stocks could pullback in the near term. Until that time, this industry group will likely remains strong.
Devon Energy Corporation (NYSE:DVN) is the leading natural gas stock at this time. Traders should note that Devon Energy Corp stock has weekly chart resistance around the $82.75 level. If the stock continues to surge into this major resistance area it could stall out and likely pullback from the level.
Over the last few days, the strongest sector is starting to lag. What sector is this? The Transports iShares Dow Jones Transport. Avg. (NYSEARCA:IYT). This sector has taken the markets higher and never looked back, until now. As the leader, the weakness starting to show up recently should be noted. It very likely speaks to weakness on the horizon for the whole market. Look at airline stocks like United Continental Holdings Inc (NYSE:UAL). The stock is down over 4.5% today alone. This is a monster drop and is seen in a majority of other airline stocks. The weakness in the transports is very much like the weakness that was seen in the Biotech Index just months ago prior to its 25% correction. This drop in the biotech index took the NASDAQ down almost 10%. If transports remain weak, use it as a leading indicator to signal a drop in the S&P 500 and the Dow Jones Industrial Average. [more]
This morning, most of the leading retail stocks are coming under selling pressure. One leading retail stock that looks to have more downside in the near term is Bed Bath & Beyond Inc (NASDAQ:BBBY). This stock topped out in January 2014 at $80.82 a share. Since that high peak the stock has plunged lower by $20.00 a share. Today, Bed Bath & Beyond Inc stock is trading lower by 0.73 cents to $60.55 a share. Traders should note that the stock is now trading below the important 50 and 200-day moving averages. This chart formation puts the stock in a weak technical position. Many traders and investors refuse to buy stocks when they trade below the 50-day moving average and this pattern is certainly putting pressure on the stock. Traders should now watch for important chart support around the $54.50 level. This was a level where the stock bottomed out in 2012, very often former support levels will once again be defended by the institutional money. This area is the best bet for an important low to be made in the stock. [more]
The FIFA World Cup 2014 will begin this week. The defending champions, iShares MSCI Spain Capped ETF (NYSEARCA:EWP) in my opinion have little to win, yet much to lose.
This is why...
You see, four years ago when Spain won the World Cup, the iShares MSCI Spain Capped ETF (NYSEARCA:EWP) had come into a major support level on the charts, while making a significant higher low at $29,85 in the monthly chart. Shortly after the nation's team was crowned World Champion of the 2010 FIFA World Cup, the iShares MSCI Spain Capped ETF (NYSEARCA:EWP) rose for nearly a year to a high of $45.80. Three years later, and after a major down draft on this ETF, price is interestingly enough came right back into that level.
Unlike the last time the World Cup was on, the chart of the Spain ETF is telling me that it will upset many investors this time around, as well as millions of soccer fans from this nation. At this time, looking at the monthly chart once again, the iShares MSCI Spain Capped ETF (NYSEARCA:EWP) seems to be putting in a lower low, after rallying from a lower low put in place two years ago at $19.73.
The EWP is currently trading between two major levels of resistance; the first level is $44.11 and the second is $44.94. I do not expect the upper level to be broken, and the iShares MSCI Spain Capped ETF (NYSEARCA:EWP) should start to pull back as early as June, perhaps accelerating to the downside on July as the defending champions lose in an upset.
The level from where the defending champions can bounce back, will not occur until the iShares MSCI Spain Capped ETF (NYSEARCA:EWP) reach the $34.94 level. At that price you can own this ETF for a multi-week bounce. However, do not fall in love with it as the larger time frame is telling us that the defending champions do not have a great shot at winning another World Cup and the iShares MSCI Spain Capped ETF (NYSEARCA:EWP) could in fact make yet another lower low.
Elite Round Table [more]
The word these days is that the US economy is back on track and making a nice steady recovery. Tune into any financial media outlet such as CNBC, and all the pundits are talking about this so called "recovery". Housing and construction are a big part of the economy, so I take a look at a stock like Lumber Liquidators Holdings Inc (NYSE:LL) as a good gauge.
The shares of Lumber Liquidators Holdings Inc (NYSE:LL) have not been painting a rosy picture at all in 2014. In fact the commodity lumber (which is an immense component in homes), is down about 17% year to date. This decline has taken down the stock of Lumber Liquidators Holdings Inc (NYSE:LL) by roughly 22%. So where is this economic recovery? If housing was picking up or even growing, one would think that the price of lumber would be headed in the opposite direction and on the rise.
While Lumber Liquidators Holdings Inc (NYSE:LL) has been in a steady decline this year, some trader and investors might be thinking about going long here. This is a weak equity in a market that continues to go up, so how will this fare when markets actually pull back? Below I have accompanied a chart and isolated various price levels where this stock could be bought. [more]
Tyson Foods, Inc. (NYSE:TSN) is trading at $35.54 -1.96. In the last six trading days the stock has fallen from near $44.00 per share. This is a monster collapse for Tyson Foods, Inc. and one that warrants major attention. The large drop is being blamed mostly on their buyout of Hillshire Brands Co (NYSE:HSH). The general consensus is that Tyson Foods, Inc. overpaid. As most investors run for the hills, smart investors are beginning to scope out a buy level. The level on Tyson Foods, Inc. is coming up quickly. The daily chart has the 200 moving average at $35.24 and just below at $34.54 there is a major gap fill. Tyson Foods, Inc. will get a major bounce in this range, likely north of $37.75. While perhaps overpaying for Hillshire Brands Co, Tyson Foods, Inc. is getting into very oversold territory and will be solid swing trade long soon. [more]
This morning, many of the leading gold mining stocks are trading higher at the start of the session. Some of the leading gold mining stocks that are rallying higher today include Goldcorp Inc. (NYSE:GG), Barrick Gold Corporation (NYSE:ABX), Agnico Eagle Mines Limited (NYSE:AEM), and Royal Gold, Inc. (NASDAQ:RGLD). Traders should note that Agnico Eagle Mines Limited (NYSE:AEM) is showing the best relative strength today among the leading gold mining stocks. Agnico Eagle Mines Limited stock will have important daily chart resistance around the $31.60 level, this was an important daily chart gap window resistance area from May 27th, 2014. Gap windows will often serve as important support/resistance levels on the charts. [more]
The Fear & Greed Index is at 92 out of 100 today and will likely climb higher if the markets hold their morning gains. The S&P 500 is trading at $1954.34 +4.90 on the day. History has shown us that readings above 90 dictate at least a near term pull back in the markets. In recent weeks, the S&P 500 has climbed to all-time record highs. Every minor negative issue has been swept under the rug and caused nothing more than a one or two day pull back. Investors continue to believe that the markets will never go down. This is even true for mega hedge fund players like David Tepper who just last week gave the all clear to investors for further significant market upside. Every media outlet is pumping the upside and the bears have all but vanished. Investors should be looking at this like a contrarian indicator. Simply put, if history is any indicator, with a Fear & Greed Index reading of 92, it is likely the markets will pull back slightly. [more]
This morning, leading specialty coffeemaker Keurig Green Mountain Inc (NASDAQ:GMCR) is declining lower by $8.06 to $114.01 a share. The stock is now testing its daily chart 20-day moving average. Today's decline in Keurig Green Mountain Inc stock is taking place on heavier than average volume, this tells us that the stock is susceptible to further intra-day declines. Day traders should watch for solid intra-day support around the $111.20 area. This is prior pivot support level from May 29, 2014. Often, prior pivot support levels will serve as solid support when retested. [more]
Millions of soccer fans around the world await the most important global sporting event, the 2014 FIFA World Cup. Many media outlets have already started to hype different stocks, as well as statistics about the event. This brings about a question for us traders, who is going to win and how can we profit? As technical traders, who study and trade from the charts, we are one step ahead of the news, and possibly even the game! With that in mind, lets look to the iShares MSCI Brazil Index (ETF) (NYSEARCA:EWZ) to help us pick the winning nation by analyzing the chart. [more]
Walter Energy, Inc. (NYSE:WLT) has been hammered non-stop in 2014. The constant stream of negative news hit a peak in the last few days with word of new regulations for coal plants. Many are calling these new regulations the death of coal. Often times stocks put in bottoms on major negative news and this looks to be no different. Walter Energy, Inc. is bouncing nicely today and showing signs of life. This stock is very possibly turning the corner for a move higher of up to 25-35% in the coming weeks. Walter Energy, Inc. is a buy as long as it does not take out the 52 week low on the chart at $4.25 on a daily closing basis. [more]
Delta Air Lines, Inc. (NYSE:DAL) has been one of the best performers in 2014. The stock is trading up 50% this year. Up until recently, Delta Air Lines, Inc. has shown no signs of slowing down. As of today, it appears this stock is ready to lose altitude and quickly. First, note the S&P 500, trading higher by over 11 points on the day. Next, look at where Delta Air Lines, Inc. is trading, $42.01 -0.16 (-0.38%). While this may not seem significant, keep in mind this is a big change in character from any other days this year. If the S&P 500 was up, Delta Air Lines, Inc. was up...until today. From a technical stand point, connect the recent highs and you will get a trend line that matches perfectly to the high yesterday. Also, calculate a max move off the 200 daily moving average, price has hit upside max target. Be ready to see some downside in the coming days, weeks. [more]
This morning, the leading fitness center Life Time Fitness Inc. (NYSE:LTM) is coming under some serious selling pressure. The stock is declining lower by $5.99 to $46.00 a share. Life Time Fitness Inc stock is trading lower on 1.6 million shares, the three month average volume is 751,000 shares. This type of decline signals institutional distribution and further downside in the near term. Traders and investors must now watch the $39.00 area for major chart support. This is a level where Life Time Fitness Inc staged a two year base in 2010, and 2011. This level on the chart will likely be a level where the stock will stage a bounce according to the charts. [more]
This year has been a very disappointing year for share holders of Google Inc. (NASDAQ:GOOG) to say the least. Can you believe, as the markets are making new all time highs seemingly everyday, the behemoth search engine and ad company that is Google Inc. (NASDAQ:GOOG), is negative year to date. Its a bit hard to believe, as this was one of the market darlings of 2013 returning just over 58%. [more]
There are some amazing bull flag setups out there as the markets hover near all time highs. Three stocks that get my immediate attention are Voxeljet (NYSE:VJET), SINA Corp (NASDAQ:SINA), and Stratasys, Ltd. (NASDAQ:SSYS). Not only do they have great bull flag formations, but the patterns are occurring near the lows of the chart which indicate a potential longer term bottom. Voxeljet, Sina and Stratasys have all been beaten down sharply from their 52 week highs. Assuming the markets do not collapse in the coming days, these patterns should play out and can be very profitable. Please note that if any of these patterns take out the recent lows (wide range bar which makes up the pole of the flag), it will have failed and you should stop out. [more]
There is no denying that the leading handbag and accessories retailer Coach Inc (NYSE:COH) stock price is in a confirmed downtrend on the charts. This stock peaked out in March 2012 at $79.70 a share and has been sliding lower ever since that top was made. Today, Coach Inc stock is trading lower by 0.93 cents to $39.10 a share. This stock is getting very oversold according to the charts in the near term. Swing traders should now watch for daily and weekly chart support around the $37.50 level. This was an area where Coach Inc stock staged a breakout in 2010. Often, old break-out levels will serve as new support levels when retested, that should be the case with this stock. [more]
As of late, all I hear is people in the media talking about the move in old tech stocks, and how new money should be put to work in names such as Microsoft Corporation (NASDAQ:MSFT), Cisco Systems, Inc. (NASDAQ:CSCO), Hewlett-Packard Company (NYSE:HPQ) and so on. This should make you wonder, why where the talking heads not saying this while these stocks were 10, 20 and in some cases, over 30% off their highs?
At the beginning of 2013, MSFT Microsoft Corporation (NASDAQ:MSFT) was trading at only $26.28. Since then, the stock has been one of the new leaders in the market, reaching a high of $41.66 earlier this year. That is an unbelievable run, especially for a company of the size of MSFT Microsoft Corporation (NASDAQ:MSFT).
Looking back in time, yes MSFT Microsoft Corporation (NASDAQ:MSFT) was a great bargain at those levels. But remember something important, back then no one wanted to buy MSFT, or so they claimed on the different media outlets. As traders and investors we must always be aware of what is behind the words of these media talking heads. Their main goal is to create hype and get the small investor caught up in the moment. The reason they do that is simple, ratings! They are hosting TV shows, they need people to watch their shows. Or maybe they are selling newspapers, well, someone needs to buy the papers folks. Institutions know the role of the media all too well and use it to feed the public information for their benefit; so they can sell their shares at the highs and buy them back at the lows. For this one simple reason, you should never chase any equity. If a stock has run up on the back of media hype, run away! Learn how to utilize the charts to your advantage by reading them correctly and you will allow yourself to be a buyer when institutions are buying and a seller when they sell.
Let's take a look at the MSFT Microsoft Corporation (NASDAQ:MSFT) chart below and see what it is telling us regarding buying or selling the equity now...
Image link: http://www.inthemoneystocks.com/images/bryan/MSFTERT.png As you can see, MSFT Microsoft Corporation (NASDAQ:MSFT) peaked at a high of $41.66, and it is now trading just a little below that high at $40.79. The PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) recently reached a multi year high of $91.45. However, as noted by the chart above, MSFT has put in lower highs and recently made a new lower low at $38.51, before rallying back intra day to close above an important support level at $38.98.
This is bearish for the equity, and perhaps a sign of distribution. If MSFT Microsoft Corporation (NASDAQ:MSFT) closes below $38.51 on a daily basis, it should quickly fall further. This equity should not be chased at these levels. A level that could be in play for a short term move up from is $37.18. Another level that you can keep on your buy list and will offer an opportunity for a longer term hold, will be the $35.04, depending on how and if MSFT gets there.
Kiliam LopezElite Round TableInTheMoneyStocks.com [more]
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