Transports Trying To Breakout, See The Upside Target
Shares of the Transportation ETF (IYT) are breaking a quad top today. This means a possible breakout, should confirmation occur tomorrow. If this happens, the upside on the transports is $207 from its current $196. That is some major juice to the ETF plus a good omen for the stock market. Let's see if confirmation triggers tomorrow...
Dycom Industries Inc $DY is Crushed After Earnings, Watch This Level
Dycom Industries Inc (NYSEY) is a leading provider of engineering, construction, and installation services to telecommunication providers. Earlier today, the company reported earnings that are not being well received by the street. The stock is trading lower by over 17.0 percent to $95.46 a share. Traders and investors should note that the stock is now trading sharply below its important 200-day moving average, this is a very bearish indication. The next important support area for the stock will be around the $90.00 level. This is where the stocks has a major gap window from November 17, 2017. Often, major past gap windows should serve as solid support when initially filled in the chart.
If This Level Breaks, 10 Year Yields Spike to 3.50%, Then 4.05%
10 year bond yields are hammering on the 3.10% level. This was the pivot high from 2013 and current resistance. However, should the 10 year yield break over 3.10%, there is no resistance until 3.50%, then 4.05%. While to average investors it may mean little, to smart traders this is huge. The stock market could literally lose 25% of its value if rates spike to 4.05% as big money runs for yields versus the risk of stocks. In addition, U.S. debt payments will spike, likely causing an S&P warning and possible default. The Federal Reserve has put us in a corner where easy/cheap money is the only way to survive. This is a major catastrophe waiting to happen. In my opinion it is not IF rates jump to 3.50 and 4.05%, it is when?...
On Watch: SOHU.com $SOHU Nearing Key Breakout Level
Shares of China company SOHU.com (SOHU) are consolidating in a bullish manner just underneath a major breakout level. Should the stock trade through the $38.00 breakout point, SOHU will likely surge as high as $44.00-$45.00. The backing off of trade war fears means Chinese ADR's are back in play for big money hedge funds. Just an added positive. Watch for the breakout and enjoy the swing trade.
Hewlett Packard Enterprise Co $HPE Slammed After Earnings, Here's The Trade
Earlier today, Hewlett Packard Enterprise Co (NYSE:HPE) reported earnings. The stock is declining lower by $1.76 to $15.63 a share. At this time, HPE stock is holding above its 200-day moving average. A daily chart close below this key moving average would signal another move down in the stock. The next key support level for HPE stock will be around the $14.40 area. This level is where the stock broke out in late November 2017. Often, prior breakout levels will serve as major support when initially retested. I will be looking to play HPE on the long side around this major level.
Major Swing Trade Buy Target On Hewlett Packard Enterprise Co $HPE
Shares of Hewlett Packard Enterprise Co (HPE) are falling sharply after reporting earnings. The stock is down over 10%, trading near $15.50. As it declines, some investors who were long are selling with panic, other investors are buying thinking it's a great discount. However, the smart big boys and girls are waiting patiently for Hewlett Packard Enterprise to tag the $15.00 level, a key pivot on the stock chart and a major buy level. Once hit, Hewlett Packard Enterprise will see a solid bounce for a swing trade long.
CIT Group Inc (NYSE:CIT) is a leading provider of financing, leasing and advisory services to middle market companies in a range of industries in North America. Today, the stock is falling lower by $2.42 to $52.82 a share. This decline breaks the recent uptrend in CIT stock. Very often, sharp declines like this will lead to further downside in the near term. Traders should note that the stock has support around the 200-day moving average which is currently around the $50.00 area. Unfortunately, CIT stock trades less than a million shares a day on average, this tells me that we have to compensate for overshoot and look lower. The next major support level for CIT would be around the $48.00 area. This level is where the stock broke out in November 2017 and should be solid support when retested.
This Chart Says Applied Materials $AMAT Headed to $35.00
Shares of Applied Materials, Inc. (AMAT) recently fell sharply on earnings. While some investors and TV talking heads viewed this as a buying opportunity, smart technical traders are sounding the alert. There is a major head and shoulder pattern formation that may signal a collapse from the current $50.00+ price point, to $37.50. A head and shoulder pattern is a bearish formation. When the neck-line breaks, the pattern is triggered. Per calculations, the $37.50 is target.
There Is A Bidding War For FOXA, So Where Is The Buy Level For Disney Stock?
There is now a bidding war for Twenty-First Century Fox (NASDAQ:FOXA). The two companies that are looking to take over the media firm are Walt Disney Co (NYSEIS) and Comcast Corporation (NASDAQ:CMCSA). Earlier today, reports were released that Disney is preparing to increase its bid for FOXA to counter the Comcast offer. As a technical trader, we don’t really care what a company pays for another company, we just care about the chart. At this time, the chart is setting up for further downside in Disney shares. Currently, DIS stock is trading around $100.65 a share. Unfortunately, the pattern on the chart is saying that this stock could drop as low as $90.00 a share before becoming a buying opportunity. Now please understand, anything can happen when a company is fighting to take over another business, but this chart signals a strong buying opportunity around the $90.00 level for Disney stock.
Shares of JPMorgan Chase (JPM) are hammering on major support at $105.00. Not only is this a former pivot low multiple times in the last six months but it is also the daily 200 moving average. JPMorgan is a buy as long as it holds $105.00. If it breaks $105, there is significant downside, so exit immediately. Next stop would be $94.00.
Michael Kors $KORS Tanks After Earnings, Know This Level
This morning, leading luxury retailer Michael Kors Holdings Ltd. (NYSE:KORS) is plunging lower by more than 12.0 percent to $59.51 a share. The company's cautious outlook disappointed the street and seems to be the catalyst for the decline. The next key support area for the stock will be around the 200-day moving average which is currently at $57.83. Unfortunately, the larger chart pattern is signaling more of a decline in KORS stock price. The next major support level on the weekly chart indicates the $50.00 area. This is where the chart has a convergence of important weekly chart moving averages and a major gap window from late October 2017. Traders should keep KORS on the radar around this level for a long side trade.
Massive Double Top Signals Strong Short On Micron Technology (MU)
Shares of Micron Technology (MU) are hammering into a daily double top after rallying 35% in just weeks. This is partial fake financial engineering due to a massive share buyback but also because of a piker cult following of the stock that drives it higher as small investors chase in the upper ranges. Ultimately, the charts tell the truth and the truth is a double top after a massive move like this has a 80% chance of falling hard. In addition, after posting a short on the stock on Twitter, many average or sup-par average investors told me I am crazy. That is exactly what you want to see to know you are correct on the analysis.
Box Inc (NYSE:BOX) is a leading cloud based storage provider that came public in February 2015. Last night, the company reported earnings that are not being well received by the street. Today, the stock is trading lower by more than 10.0 percent to $24.82 a share. Traders should note that the stock was forming a bullish base before the earnings announcement, that pattern could be broken today. A failure of the pattern should indicate further downside for the stock in the near term. The next important daily chart support level for BOX will be around the $22.50 area. This is where the stock broke out in late April 2018. This trade level should be solid support when initially retested.
Deutsche Bank $DB: Major Black Swan Event, Ignored By Media
Shares of Deutsche Bank (DB) collapsed sharply lower today, now down almost 50% in 2018 alone. The financial media is nowhere to be seen on this mega story. The derivatives book on Deutsche Bank would make even the strongest stomached investor squirm. North Korea? A trade war? None of these come close to the financial impact of Deutsche Bank pulling a Lehman Brothers collapse on the economy and financial system. This is a friendly heads up to investors. Deutsche Bank just broke a major double bottom support level and is in mega collapse territory. If it does not recover in a day or two, expect financial panic to sweep over Europe and the United States. Banks like JPMorgan Chase (JPM) with exposure would see a 10% or more drop in just days.
Palo Alto Networks $PANW Drops Sharply, Watch This Level1
This morning, leading network security company, Palo Alto Networks (PANW), is trading sharply lower after reporting earnings. Earlier, the stock staged a gap higher open before reversing to the downside with heavy volume. At this point, the stock is forming a strong outside day. This formation is also known as a bearish engulfing pattern on the charts. Traders and investors must expect further decline in the near term. The next important daily chart support level for PANW stock will be around the $192.00 area. This is where the stock broke out in early May to new all time highs. Very often, stock will retest their prior breakout area before being defended by the institutional money.
Technical Top Signal: Advanced Micro Devices $AMD Short
Shares of Advanced Micro Devices (AMD) is signaling a strong short on the daily chart with a reversal and topping tail today. The stock is up over 50% since April 2018. This is extreme overbought territory but the topping tail is the key. Look for a drop in the stock back to $12.50 in the coming weeks.
Berkshire Hathaway Inc $BRK.B Struggling Despite Apple Inc $AAPL Strength
Recently, everyone on Wall Street has been raving about Apple Inc (AAPL) possibly being the first $1 trillion dollar company in the stock market. Today, AAPL stock is trading higher by $1.24 to $193.07 a share. This is a new all time high stock price for the tech giant and many are expecting even more upside near term.
Several weeks ago, it was reported that Warren Buffet's company Berkshire Hathaway (BRK.B) added 75 million shares to his Apple Inc position. He now owns 239.57 million share of AAPL stock. The market went crazy on the back of this news, but since that time BRK.B stock has been slumping. In fact, BRK.B stock is now trading below its important 200 and 50-day moving averages. This chart formation puts the stock in a weak technical position. Traders and investors must now watch for major support on BRK.B around the $184.00 level. This price area is where the stock broke out in late November 2017. Traders should expect the stock to be defended again at this major support level when retested. Until this level is reached it is likely that BRK.B will struggle in the near term.
Shares of First Solar (FSLR) fell again on Tuesday after China continued to fight back against U.S. tariffs. Let's not kid ourselves, the trade war has begun and it will be tit for tat going forward, ultimately hurting U.S. jobs and the economy. Having said that, expect solar stocks to remain weak in the coming days/weeks. First Solar should continue lower in the next month to a target of $48.00. Once there, expect a hardcore technical bounce back to $57.00. This is the technical level the best stock chart swing traders are eyeing for a buy.
Jack Daniels Whiskey Maker Slides After Earnings, Here Is The Trade Level
Brown Forman Corp (NYSE:BF.B) is a leading manufacturer and distributor of alcoholic beverages under the Jack Daniel's, Finlandia and other brands. Today, the stock is falling lower by 3.88 percent to $53.70 a share. Traders should note that the shares are now trading below its important 50-day moving average. This decline below this key moving average puts the stock in a weak technical position on the charts. There are still some major support levels below that should be watched closely. First, there is the $49.00 area which is a major gap fill from December 5th, 2017. Depending on how the stock reaches that level it could be a major support area. The next major level would be around the $47.50 level which is where there was a major breakout in late November 2017. My best bet level is going to be the $47.50 area, Very often, the institutional money will defend a prior breakout level when initially retested.
Y) is a leading provider of engineering, construction, and installation services to telecommunication providers. Earlier today, the company reported earnings that are not being well received by the street. The stock is trading lower by over 17.0 percent to $95.46 a share. Traders and investors should note that the stock is now trading sharply below its important 200-day moving average, this is a very bearish indication. The next important support area for the stock will be around the $90.00 level. This is where the stocks has a major gap window from November 17, 2017. Often, major past gap windows should serve as solid support when initially filled in the chart. 
