Shares of Seagate Technology (NASDAQ: STX) fell sharply lower on Thursday, falling over 7% to $51.00. This collapse is major and investors should be worried. The stock chart not only broke below the daily 200 moving average, but breached an epic trend line of support. The break of both these levels will likely spell significant downside for Seagate Tech in the coming months. A drop to $43.00 looks likely.
Occidental Pete Corp $OXY Plunges After Earnings, Watch This Trade Level
This morning, leading crude oil and natural gas exploration and production company, Occidental Pete Corp (NYSE:OXY), is plunging lower after reporting earnings. The stock is trading lower by 5.78 percent to $76.50 a share. Traders and investors should note that the stock is testing a critical support level around $76.00, a weekly chart close below this area will signal more downside for the energy giant. The next key support level for OXY will be around the $70.00 area. This is where the 200-week moving average is currently and also where the stock had a key break-out in April 2018. Often, support levels such as this will be defended by the institutional crowd when initially tested.
This Leading Home-Builder Is Falling, Here's The Trade $LEN
This morning, most of the leading home-builder stocks are coming under selling pressure. Home-builder stocks such as Lennar Corp (NYSE:LEN), Toll Brothers Inc (NYSE:TOL), DR Horton Inc (NYSEHI) and other are all trading lower by more than 3.0 percent today. Many investors are blaming the recent Redfin Corp (NASDAQ:RDFN) guidance for the decline in the home-building sector, but the industry group has been slumping since the start of 2018.
Lennar Corp (NYSE:LEN) is one particular home-builder that has caught my eye. This stock topped out on January 22, 2018 at $72.17 a share. Since that high pivot, the stock has steadily declined lower throughout the year. Today, LEN stock is trading down by $2.43 to $50.94 a share. Traders should note that the stock has been trading in a sideways range since mid-May. This pattern tells me that there is one more move lower to go before the stock finds a defined bottom. Traders and investors must now watch the $45.00 area as the next major support level for the home-builder. This is where the stock broke out in February 2017. Very often, prior break-out levels will serve as major support when retested.
Shares of Amazon.com (AMZN) surged higher on Monday, after analysts pumped the advertising potential of the online retailer. With chatter of a $150 billion in revenue by 2020, the stock jumped with euphoria. Smart investors and traders know that stocks top, often on euphoria. Was this it today? That question will be answered at the 4pm ET close. Currently, Amazon.com is reversing off the highs and may be putting in a topping tail. A topping tail is a very bearish reversal signal that marks a major top. at 4PM ET, if the topping tail is formed, it is likely the long-term top on $AMZN.
Shares of Alibaba Group Holdings (BABA) continue to drop sharply as trade war fear continues and the Chinese economy slows. Alibaba has fallen from over $210 in June 2018 to its current $172 level. Based on calculations and technical chart analysis, Alibaba is a swing trade buy when it hits $160.00.
Chinese ADR's Are Falling, Watch The Buy Level For This Chinese Stock
This morning, most of the leading Chinese ADR's are coming under heavy selling pressure. As you all know, the Shanghai Indexes (Chinese stock market) has been falling lower since late January 2018. Trade wars and increased tariffs have certainly hurt the Chinese economy, but there have been other problems in China that have caused the markets and leading stocks to decline.
Today, leading Chinese ADR's such as Alibaba Group Holding Ltd (NYSE:BABA), Baidu Inc (NASDAQ:BIDU), YY Inc (NASDAQ:YY), JD.com Inc (NASDAQ:JD), and most others are declining lower. The one Chinese ADR that I have my eye on is China Southern Airlines Co Ltd (NYSE:ZNH). Now understand, this stock usually trades very light volume, so it is important to really find a level that will be supported by the institutional crowd. The support area for ZNH stock that looks solid will be around the $27.00 level. This area is where the stock broke out in January 2017. Prior break-out and pivot levels will usually serve as excellent support when retested.
Shares of the $GDX (Gold Miner ETF) took another major beating today, falling for the sixth straight day. This fall is different than the last few. First, there is panic in the selling. That is actually a good sign. Bottoms are made by flushing out the weak hands in a panic. Next, there is a major double bottom on the stock chart. Price just tagged it. Technically speaking, this is a major support level. Lastly, there is a time count. Proprietary PPT Strategies signal a bounce tomorrow and Friday. Enjoy!
Dillards Inc Is Tanking After Earnings, Here's The Trade $DDS
This morning, leading retail stock, Dillards Inc (NYSE: DDS), is trading sharply lower after reporting earnings. The retail giant is trading lower by more than 12.0 percent to $72.63 a share. Traders should note that the stock is now trading below its important 200-day moving average. This is usually a signal of further weakness for the shares going forward. The daily chart trend is down and the stock is in a weak technical position.
Traders and investors must now be patient and wait for this stock to fall into a key support level before entering on the long side. The level that strikes me as a solid buying opportunity will be around the $65.50 area. This is key support level is where the 100-week moving average is currently. It is also a key retrace level that was defended in early May. This major support level should be defended by the institutional crowd when retested.
Watch This Trade Level For This Leading Tech Stock
Xilinx Inc (XLNX: NASDAQ) is a leading technology stock that has been coming under pressure recently. Today, the stock is trading lower by 0.88 cents to $70.14 a share. Traders and investors should note that this stock has been in a trading range since the start of 2018. The high end of the range has been around the $77.00 level and the low end of the range has been around the $62.50 area. A case can be made that XLNX stock has been making higher lows every time the stock price has tested the low end of the range. This time around the $65.00 area should serve as important support when tested. There is also the 100-week moving average around that level as well, this will increase the odds of institutional support and that is what moves stocks.
Apple Inc $AAPL Retrace Begins, Here Is The Target
Shares of Apple Inc (AAPL) started Monday with a surge higher. Since earnings, Apple has soared 15%, passing the $1 trillion marker. With the stock now at extreme overbought levels, smart investors are on the short side. As of noon on Monday, the stock has turned negative, falling approximately $3 from the highs. This reversal day signals the beginning of a retrace of the recent gains. Pro traders expect a pullback to the $200 level, a return to the uptrend trend line. Once this happens, the stock should find footing once again.
Online Brokers Get Whacked After JPMorgan $JPM Announces Trading App, Watch This Trad
This morning, many of the leading online brokerage firms are trading lower after JPMorgan Chase (NYSE:JPM) announced a new trading app. The app launches next week and will allow users to get 100 free stock trades in the first year. If the user trades over the 100 free trade limit then they will be charged just $2.95 per trade. This news is putting pressure on most leading online brokers such as TD Ameritrade Holding Corp (NASDAQ:AMTD), Charles Schwab Corp (NYSE:SCHW) and ETRADE Financial Corp (NASDAQ:ETFC).
TD Ameritrade Holding Corp (NASDAQ:AMTD) is a stock that I will be watching closely over the coming days. The stock is trading lower by 5.39 percent to $56.94 a share. Today, the stock seems to have found support around its 200-day moving average. A failure to hold this key level would indicate another leg lower. The next major support area for AMTD stock will be around the $52.00 area. This level is where the stock was defended in February 2018. Traders should note that this level should be solid for a long side play when retested.
The Russell 2000 ETF (IWM) is surging today, but nearing a major max extension trend line. Since late 2016, this trend line has dictated the max highs on the index. Today, the Russell is nearing this level and likely will see a pull back off this max level.
Hartford Financial $HIG Drops After Acquisition, Here's the Trade
This morning, leading insurance company, Hartford Financial (NYSE:HIG), acquired Navigators Group (NAVG) for $70.00 a share in cash. The total deal is worth $2.1 billion. The news is sending HIG stock lower by 4.28 percent to $50.12 a share.
Traders and investors should note that the trend is down for HIG. The stock is now trading below its important 50 and 200-day moving averages. This puts the stock in a weak technical position. The weekly chart pattern also indicates a bearish pattern and lower stock prices ahead. Traders must now watch the $44.00 area for major chart support. This is where the stock broke out in November 2016. If you have followed my work you know that I like when stocks retest prior breakout levels. Keep the $44.00 area on the radar for a long side trade in HIG when it gets there.
Electronic Arts Has Been Under Pressure, Know This Trade Level $EA
Leading video game developer, Electronic Arts Inc (NASDAQ:EA), has been under selling pressure since July 13, 2018. At that time, the stock peaked at $151.25 a share. Today, EA stock is trading at $126.52 a share, which is a decline of more than 16.0 percent from the high. The stock is now forming a bearish pattern on the daily chart which suggests lower prices ahead. The next key support level for EA stock will be around the $117.00 level. This important support area was defended in April 2018 and will likely serve as a solid trade level when tested.
Shares of Alibaba (BABA) surged this morning after they reported stellar earnings. However, during the conference call, the company warned about the impacts of tariff rules and the trade war between the US and China. The stock has collapsed and will continue to collapse to first target $160. Once there, a bounce is expected before it proceeds to $125.00 as a final resting target price. There, a longer swing trade can be taken.
Foot Locker $FL Tests Critical Level, Here's What You Should Know
Last week, leading athletic shoe retailer, Foot locker Inc (FL), sold off sharply after reporting earnings. The stock was able to hold its important 200-day moving average on the sell off. Today, that key moving average was tested again for the second consecutive session. Traders and investors should note that if this 200-day moving average fails to hold as support it would trigger another sell signal for FL stock.
The next key support level for level for FL stock will be around the $40.00 area. This important support level was defended in March and May 2018. Often, when key support areas are retested they will be defended again by the institutional crowd. I will be watching the trade action very closely this week in FL stock to see if the 200-day can hold up as support.
Netflix $NFLX Hits Max Move As Smart Money Shorts/Sells
Shares of Netflix (NFLX) hit their max upside level today at $370. This is the daily 20 moving average as well as a kissing the 61.8% Fibonacci retrace level. Ultimately, the stock has soared nearly 20% in the last week. Look for a significant drop in price back to $350 in the coming days.
The Significance Of A Russell 2000 $IWM Topping Tail
On Monday, August 27th, 2018, the Russell 2000 (IWM) surged sharply higher with the S&P and NASDAQ. However, there was one difference to a normal trading day. While the rest of the markets stayed at their highs, the Russell 2000 faded, forming a topping tail (bearish top signal). The reason this may be significant is because the Russell 2000 has lead the market both to the upside and downside over the last year. Because of that, investors should pay closer attention to the topping tail on the Russell 2000. It may signal a significant top or nearing top on the S&P and NASDAQ.
Crypto traders should be aware that the bitcoin chart is hamming on a major level. Should it break through this $7,100 level and hold, there could be a significant upside surge in the price. Note the chart below.
HI) and other are all trading lower by more than 3.0 percent today. Many investors are blaming the recent Redfin Corp (NASDAQ:RDFN) guidance for the decline in the home-building sector, but the industry group has been slumping since the start of 2018.
