Shares of Goldman Sachs (GS) have taken a nose-dive in the last week. Goldman was trading north of $230 just days ago, today it is below $210. A mix of worry over rates, the economy and their health have been the catalysts. Pro traders expect it to continue to fall to $199 before triggering a major technical support and bouncing sharply.
Tyson Foods Flops After Earnings, Here's The Trade
Earlier today, leading food company, Tyson Foods Inc (NYSE:TSN), reported earnings that disappointed the street. The stock is trading lower by $3.50 to $58.09 a share. Traders and investors should note that the stock has been forming a bearish base on the larger times frame charts. This pattern still indicates further downside for the stock price. The next important support level that I see is going to be around the $52.00 level. This is where the stock was defended in January 2016 and it should be solid support when retested. The food company owns popular brands such as Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells and State Fair.
Oil is crashing today. It has been crashing since the beginning of October 2018. The Unites States Oil Fd LP (USO) topped out at $16.25 at the start of October but now trades below $12.00. This is an over 25% collapse in a month. Today looks to be capitulation with panic setting in. This means it is likely putting in a bottom for a bounce. The technical chart confirms this, showing major support at $11.85 and $11.70. I expect a major bounce back to $13.00 on the $USO.
CNBC is telling everyone about the death cross on the Russell 2000 $IWM daily chart ( 50-MA crossing the 200-MA to the downside). Tonight, in the Research Center I'll tell you the right way to use it and everything you need to know to profit from it in the Daily Market Report, also what can make it fail - Nick Santiago
Home-builders Are Under Pressure Again, But Here's The Level For This Leading Stock $
As we all know, the leading home-builder stocks have been under severe selling pressure since late January 2018. Higher interest rates have been the catalyst for the decline in the sector. The Federal Reserve continues to signal that they will continue to steadily increase rates to a more normal level as long as the economy is strong. This action should keep the home-builder stock somewhat depressed for a bit. Many of the leading home-builder stocks have now fallen so much that they are actually looking attractive.
One particular home-builder stock that I'm watching closely is D.R. Horton Inc (NYSE: DHI). This stock topped out at $53.32 a share in January 2018. Today, the stock is trading around $33.30 a share. Traders and investors should now watch the $30.50 area as the next major support level. This is where the stock staged a breakout in February 2017. Often, when stocks test past break-out levels they will be defended by the institutional money. This is where I will be looking to enter DHI stock on the long side.
An Epic Trend Line Worth Watching On Apple Inc. $AAPL
This trend line stretching back to 2012 is worth taking note of on Apple Inc. (AAPL). Based on its long-term strength, it is likely Apple will see major support around this $175.00 level and likely snap back to as high as $190. Note the chart below.
Tapestry $TPR Under Pressure, Watch This Trade Level
Tapestry, Inc., formerly known as Coach, Inc., is a leading design house of luxury accessories and lifestyle collections. The Company's brands include Coach, Kate Spade, and Stuart Weitzman. The stock has been under pressure since August 14, 2018 when it peaked on the daily chart. At that time, the stock hit a high at $54.35 a share. Since that peak the shares have declined sharply lower and are currently trading around the $37.25 level. Traders and investors should note that this stock is in a severe down-trend at this time. One support area that I will be watching closely will be around the $33.50 level. This is where the stock broke out in January 2016 and it will likely be defended again when retested.
Netflix $NFLX Headed Here Before Major Buy Triggered
Shares of Netflix (NFLX) are inching higher today as the markets float ahead of the G20. However, any upside in the next few days should be viewed with skepticism. The stock chart signals Netflix will head to $228.50 before putting in a long term bottom. That is almost another 20% downside before a screaming buy is triggered.
Here's The Electronic Arts $EA Level That Every Trader Should Know
As we know, leading video game developer, Electronic Art Inc(EA), has been under some sharp distribution since July 2018. At that time, the stock peaked out at $151.25 a share. Since that high pivot point, the shares have tumbled down to the $84.40 level. EA stock is now trading below it's important 200-week moving average. This will usually indicate lower prices ahead for the popular gaming stock. One particular support level that has caught my eye will be around the $75.00 area. This is a prior scene of the crime support level from 2016. Often, these key levels will be defended by the institutional money when retested.
Valero $VLO Ignites Low Pivot With Bottoming Tail Formation
Shares of Valero (VLO) have likely put in an epic bottom. After making a new 52 week low in early trading, Valero staged a strong reversal. This reversal in price put in a major bottoming tail on the daily chart. This same chart signal appeared on Apple Inc (AAPL) just days ago before seeing the stock soar. Valero also has an added benefit of major daily support. Look for Valero to jump back to $90 within weeks.
This morning, leading diagnostic testing and information services company to the healthcare industry, Quest Diagnostics Inc (NYSE: DGX), is falling sharply after lowering guidance. Quest Diagnostics Inc (NYSE: DGX) stock is dropping by 9.32 percent to $87.87 a share. The stock is breaking down from a bearish daily chart base and this indicates lower prices ahead. The next key support level that should be watched closely will be the $80.00 area. This is where the stock broke out of a monthly chart bullish base in 2017. Often, when stocks retest prior break-out levels it will be defended by the institutional money crowd.
Video Game Stocks Are under Selling Pressure, Here's The Next Trade $ATVI
As you know, all of the leading video game developers have been under selling pressure since October 2018. Video game developer stocks such as Activision Blizzard Inc (NASDAQ:ATVI), Electronic Arts (NASDAQ:EA) and Take-Two Interactive Software Inc (NASDAQ:TTWO) are all trading sharply lower again today. When a stock fails to catch a bid when the market is rallying it is usually a sign of further weakness.
Activision Blizzard Inc (NASDAQ:ATVI) is breaking its 200-week moving average today so this stock is now on my radar for further near term weakness. The next major support level that I see for this stock will be around the $40.00 area. This level is where the stock broke out in February 2017. Should ATVI stock back-test this level it should lead to a nice swing trade opportunity.
Health Insurance Stocks Tumble, Watch This Trade Level $HUM
Today, most of the leading health insurance stock are falling sharply lower. Leaders in the industry group such as Humana Inc (NYSE:HUM), WellCare Health Plans Inc (NYSE:WCG), United Health Group (NYSE:UNH) and others are all trading in negative territory. A couple days ago, a Federal judge voiced concerns over the DOJ's approval of CVS/Aetna merger. This news is the likely catalyst for the big decline in the sector.
Humana Inc (NYSE:HUM) is a leading stock in the health insurance group that is trading lower by $14.76 to $309.71 a share. This stock is now testing its 200-day moving average. Should this stock close below this key moving average it would indicate lower prices ahead. The next major support area that looks attractive for HUM stock will be around the $290.00 level. This is where the stock broke out in May 2018 and should be very solid chart support when retested.
Shares of Citigroup (C) tagged an epic pivot support form 2015 today as well as the weekly 200 moving average. This two factor support puts the likelihood of a bounce at 85% in the coming month. At a current price of $58.85, investors can expect a bounce back to $64.00 in that time frame.
The iShares U.S. Home Construction ETF (NYSEARCA:ITB) has been under sharp selling pressure since peaking in late January 2018. At that time, the equity traded as high as $46.56 a share, today the ITB trades at $30.83 a share. The current pattern on the charts is still weak and this could indicate a bit more downside before a solid low is formed. When I look back on the larger time-frame charts there should be good support around the $28.00 level. This support area is where the ITB consolidated in 2015 and 2016 before breaking out. Often, when an equity will back test a prior consolidation base it will serve as excellent chart support.
Stitch Fix Inc $SFIX Tags Major Support Level, Buy Triggered
Shares of Stitch Fix Inc (SFIX) collapsed over 25% today on the back of poor earnings/guidance. The stock now finds itself trading below $20, down from a 52 week high of $52.50. While it appears to be doom and gloom there is some major light for technical traders. Stitch Fix tagged a major pivot low from June 2018 at $18.40 today. This pivot low signals a likely flush out of weak hands and the bounce signals accumulating by smart money. It would not be far fetched to see Stitch Fix trade back to $25 in the coming months.
There Is Reefer Madness Going On, Here's The Trade $CGC
The marijuana industry has been on fire lately. Politicians seem to be pushing more proposals to make recreational marijuana legal. Large companies such as Constellation Brands (NYSE:STZ) and Altria (NYSE:MO) have made large investments in marijuana companies such as Cronos Group (NASDAQ:CRON) and Canopy Growth (NYSAE:CGC).
Canopy Growth (NYSAE:CGC) is the one marijuana stock that is now on my radar. The stock topped out in October at $59.25 a share. Since that pivot high, the shares have fallen sharply and now trade around $32.80 a share. I will be watching the $26.00 level closely for a possible long side trade. This is where the stock broke out in August 2018 and it should be a level that is defended by the institutional crowd if retested.