Shares of Tesla Inc (NASDAQ:TSLA) are nearing a strong short level at $355.00. This is a classic bearish retrace to a breakdown trend line. The stock has significant downside to $245 from this level. That is a reward of over $100 on the short while the risk is only $40, when using the Tesla Inc all time high of $390.00.
Do Charts Trump Earnings? See What The $IBM Chart Is Saying
International Business Machines Corp. (NYSE:IBM) is set to report earnings after the close today. Expectations are high, but then again so is the stock price. Just in the last three weeks, International Business Machines has rallied from $150 to $171. For old snail IBM, this is a huge move. In addition, International Business Machines hammered into a major gap fill on the stock chart today. The price point of the gap fill was $170.00. This signals that the stock may pull back on earnings. If it does, look for a technical retrace to $164.00. Today will be a good example of whether or not stock charts tell investors the reaction on earnings ahead of time.
American Express Company (NYSE:AXP) fell sharply on Friday after reporting earnings that were not as robust as the market expected. American Express Company was trading at all-time highs and due for a technical correction. The fact that the stock recently crossed above the major even-number of $100, also added fuel to the odds of a pull back. With American Express dropping by 3% today, investors are looking for a bounce opportunity. That level is approaching and can be found at the former all-time, pivot high from 2014-15 at $95.00. This will be a technical support and likely to see a bounce.
Shares of International Business Machines Corp. (NYSE:IBM) fell sharply after reporting disappointing earnings results. I predicted this fall in an article I wrote yesterday ahead of earnings. The prediction was based off an overbought condition in the stock price with a major gap being filled ahead of earnings. This meant the stock was into huge resistance and was overbought. In other words, it signaled the odds heavily in the favor of a pull back. That is exactly what happened. So where is the buy on International Business Machines? The answer is $154.00. There is a gap fill support to the downside and a down-sloping trend-line that converge at $154.00. This is the buy level, likely hit next week.
Everyone trader in the world knows that utility stocks are very sensitive to higher interest rates. In other words, the higher the interest rate the worst the utility stocks will perform. Recently, interest rates on the 10-year U.S. Treasury Note has been increasing. Today, the yield on the 10-year note are trading at 2.63 percent and climbing. If you look at a chart of the Utilities Select Sector SPDR Fund (XLU:NYSE Arca) you will see that it has been declining as yields on the 10-year note has risen. This just shows us how inverse the utility sector is to higher bond yields.
Traders and investors should understand that bonds yields are not going to the moon anytime soon. The Federal Reserve is expected to raise rates just three times this year. The next rate hike by the central bank is expected in March, so this current move higher in interest rates is probably factored in already. This tells me that utilities could be a buy at some point this year. Traders and investors should watch the $45.00 level on the Utilities Select Sector SPDR Fund (NYSEArca:XLU). This level is where the XLU broke out in January 2016. Often, when key technical areas are retested they will serve as major chart support. This is the level where I will be looking to buy the XLU.
Transports Analysis: Engulfing Reversal Candle With Classic Bear Flag
The Transportation Index ETF $IYT has had an impressive run over the last few months. New all-time highs were seen almost daily until last week. Last week, the Transportation ETF staged an impressive engulfing reversal candle. This is about as bearish of a top as any chart can make. Since that happened, while the stock market has made new all-time highs, the Transports have stalled and formed a bearish flag pattern. This signals downside coming on the Transports. The $IYT Transportation Index is likely to sell in the coming days, falling to $194.00.
Watch This Spicy Trade Level For McCormick & Company Inc
McCormick & Company Inc (MKC:NYSE) is a leading manufacturer of spices, seasoning mixes, condiments and other flavorful products to the food industry. The stock topped out in June 2017 at $106.50 a share. Since that pivot high the stock has traded in a very choppy trading range. Today, MKC stock is trading lower by 0.58 cents to $98.58 a share. The stock looks to have very good daily chart support around the $95.00 area. This support level was where the stock was defended on November 7, 2017. Often, prior support levels will be very good trade levels when retested. Traders should note that the company will report earnings on January 25, 2018 before the opening bell.
Facebook (FB) Fills Gap In Hottest Bull Market In History
Shares of Facebook (FB) surged higher for the fourth straight day, filling a major gap on the daily stock chart. Gaps, when filled to the upside are major resistance points. While in normal market conditions this would be a strong sell indicator, it will instead more likely be just a small pull back. The minor downside is the gap fill working its magic but the small-ness is due to the euphoric, bullish nature of the stock market. It limits almost all pull backs. Based on the gap fill at $187.85, investors should expect a minor pull back to $184.25.
American Buying Power Degraded: Dollar Slammed By Trump Administration
The U.S. Dollar collapsed sharply today after Secretary of the Treasury Steven Mnuchin said the United States wanted a weaker currency. This statement comes after the U.S. Dollar has already fallen sharply since President Trump took office. While a weaker Dollar inflates asset prices which is likely the reason for the comment, it hurts lower and middle income Americans as buying power degrades and inflation jumps higher. Anyone who is not invested heavily in the stock market is seeing their real buying power drop with oil prices surging and other prices jumping in response. Investors on the other hand are loving it. Those with millions and billions invested in the stock market are noticing that every time the Dollar drops, the stock market jumps higher. In fact, it can be argued that there is a bubble in the stock market because of the weaker Dollar. The bottom line is, we should all be careful of this uber weak Dollar policy. There will be repercussions in the future for all Americans.
In looking at the stock chart, it clearly shows the exact spot it will fall to. Using the Dollar ETF $UUP, the U.S. Dollar will hit major pivot highs from 2012 and 2013 at $23.00. That means there is still some near-term downside because a technical support is tagged.
Lastly, please be aware that just like with Federal Reserve policy on massive money printing and how global central banks followed suit, other governments will start to devalue their currency in response. This ultimately is a long-term positive for gold, silver and Bitcoin.
SPDR Gold Shares Are Soaring On Weak Dollar, What's Next?
The SPDR Gold Shares (NYSEArca:GLD) have been ripping higher since December 12, 2017. At that time the GLD traded as low as $117.40 a share. Today, the GLD is trading at $128.47 a share and it still looks strong. So where is the resistance level for the GLD? Traders must now watch for chart resistance around the $131.00 area.
The weaker U.S. Dollar Index (DXY) has also been a catalyst for the GLD rally, but that could be changing soon. The U.S. Dollar Index is now coming down into some important support levels. Any rally in the U.S. Dollar Index will likely hurt the GLD rally.
Tariffs On Solar Trashes JinkoSolar (JKS): Here Is The Buy Level
Shares of JinkoSolar Holding Co., Ltd. (NYSE:JKS) collapsed over the last three days after President Trump placed tariffs on solar panels from overseas. JinkoSolar is a Chinese company and directly effected. The stock is down from $24 to $20 in the last three trading days and the chart says it will go lower. The first major support on JinkoSolar Holding is at $17.75. Once there, swing traders can look for a snap back to $20 for a quick trade.
When Bitcoin Breaks This Level, Move To $7,400 Happens Fast
Crypto-currency Bitcoin continues to show a ton of weakness. As the Dollar makes new multi-year lows, Bitcoin should be making new multi-year highs as an alternative for the greenback. Considering the high just a month ago was near $20,000, and it currently trades at $11,000, that is not happening. Instead, Bitcoin continues to see bearish consolidation, setting up for further downside. In the near-term, Bitcoin is safe as long as it holds the trend line seen in the chart below. That trend line sits around around $10,000. So as long as Bitcoin holds $10,000, it will not flush. However, I expect it to break $10,000 and flush down to $7,400 support. Once it breaks $10,000, the flush to target will happen within 24-48 hours. In other words, it will be fast.
Briggs & Stratton Corp Breaks Down, Know This Level
Briggs & Stratton Corp (NYSE:BGG) is a leading manufacturer of gasoline engines for outdoor power equipment. Last night, the company reported earnings that are not being well received by the street. Today, BGG is trading lower by nearly 10.0 percent to $24.57 a share. The stock is trading just above its 100-day moving average at $24.29 which is still daily chart support. A daily close below this level will be a negative for the stock and signal further downside.
There is a very good institutional support level for BGG stock around the $22.40 area. This area was defended on October 17, 2018. Often, prior support levels will serve as solid trade opportunities when retested.
Union Pacific Corp (UNP) Plummets: Here Is The Buy Level
Shares of Union Pacific Corporation (NYSE:UNP) were slammed on earnings today. The transportation company under-performing expectations, which were sky high. As the stock falls, there is a significant buying level at $123.50. This will be a key technical retrace level of support and should give the stock a significant bounce. Granted, the stock is still far away from this level, but that means it has much more downside until it is worth buying. Be patient and be ready to pounce when the chart says 'buy'.
Universal Display Corp $OLED Buy Trigger Approaching Fast
Shares of Universal Display Corporation (NASDAQ:OLED) are approaching a major bounce level at $166.00. The stock has fallen for multiple days in a row and is now entering oversold territory. Look for a bounce off $166 to $180.
Apple Hits Near-Term Support As Key Level Is Tested
The flush on Apple Inc (NASDAQ:AAPL) continues. The stock is dropping almost 2% again as investors run from the name over demand worries. With earnings a week away, investors appear to not want to risk holding. After a full $10 collapse from all-time highs a week ago, Apple is into near-term support. This level at $170.00 is a huge point for Apple. It will likely hold this level into earnings but then could break lower. Aggressive traders can buy it at $170.00 for a few Dollar bounce, but should be careful holding into earnings.
Chart Alert: Micron Tech (NASDAQ:MU) In Major Trouble
Shares of Micron Technology, Inc. (NASDAQ:MU) broke below major stock chart support today. This signals the next major leg lower in the stock price, ultimately headed to $34.00. While the media and analysts have been high on Micron Technology, the chart has spoken differently. While many chip stocks made new all-time highs in the last week, Micron Technology topped out back in early November, 2017 at $50. Since then, it has fallen nearly 20% into today. The breakdown can be seen on the stock chart below. Note the target is a key gap fill, also near the daily 200 moving average.
Buy It Here: McDonald's Corporation (NYSE:MCD) Slammed On Earnings
Shares of McDonald's Corporation (NYSE:MCD) took a beating after reporting solid earnings. The problem? Simply put, this burger and fries fast food player is trading at a P/E (price/earnings) ratio over 30. That is insane. Many high growth tech stocks do not trade at that P/E ratio. The earnings today were solid, but investors are smartly taking profits until the valuation numbers come more in-line to 'normal'. The buy level on the stock chart is $160.00 and could be hit within days.
Tupperware Brands Corp (NYSE:TUP) is a leading manufacturer and marketer of food storage containers and serving items. Today, the stock is declining lower by nearly 10.0 percent after reporting earnings. TUP stock is now testing its November lows at $57.41 a share, but further downside is likely. By looking at a weekly chart today's decline is eliminating eleven weeks up upside. This tells me that the stock will need to have more selling before a true low is found. Traders and investors should now watch the $55.00 area as the next major chart support level. This area is where the stock was defended by the institutional money in January 2017 and it will likely be sponsored again when retested.
Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) jumped higher on earnings Wednesday. This was no surprise as the stock chart dictated a move higher to the master level, gap fill of $14.25. However, once this level is achieved, Advanced Micro Devices becomes a strong short swing trade for a drop back to $12.00, perhaps far lower. Remember, gaps are made to be filled, this obvious one was a no-brainer. With Advanced Micro Devices trading at $13.50, there is still more upside, but limited to the gap fill at $14.25. For those looking to short, be patient for the trade level.
