InTheMoneyStocks Market Analysis

[InTheMoneyStocks]

This Stock Still Has One Of The Best Charts In The Market

Almost everyday since late July we continue to see and experience a choppy and volatile market. Many sectors and industry groups are in bear markets already such as energy (XLE, OIH) and retail (XRT). Other industry groups are in raging bull markets such as the utility sector (XLU), commercial real estate (IYR) and consumer staples (XLP). This is certainly a difficult market to navigate, so traders and investors must be selective.

Many technology stocks are also mixed right now. Therefore, traders will need to turn to the charts to see what stocks look the best. One stock that continues to look good on the charts is Microsoft Corp (NASDAQ:MSFT). This stock is slightly off of its all time high made at $141.67 on July 26, 2019. Currently, MSFT stock trades around the $136.50 level. A fair case can be made that the stock is now trading sideways on the charts and is simply consolidating to move higher down the road. In environments like this it is important to isolate relative strength and MSFT is definitely showing very good strength at this time. I will be keeping this stock on my radar for a possible break-out candidate for later this year.

Nick Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Investing: Gold Analysis And Short Trade Level

Gold continues to surge higher, trading over $1,550/ounce. This bull run in gold is extended and I have isolated a technical resistance that warrants a strong short swing trade. Swing trades are generally 1-4 weeks long and look to capture a large move in the entity. The level on the GLD (Gold ETF) is $148.50. This is a major pivot point from 2011 and 2012. Look for price to pull back into the mid to low $130’s. I do want to make traders aware, I am a long-term bull on gold as well as crypto. It does not take a genius to see the end of fiat currency with the trillion-dollar-plus yearly spending of the government and the Federal Reserve printing trillions to get us out of every economic dip. While I trade short-term, I think long-term so I am prepared.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Nasty Semiconductor Chart Pattern

The semiconductor ETF (SMH) has one of the nastiest bear flag consolidation patterns I have seen in years. This is signaling an extreme sell on the index and does not bode well for the stock market overall. Look for the semi’s to break lower in the coming weeks with a downside ultimate target of $95.00. Please note the stock chart below for the swing trade setup.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Roku Inc $ROKU Is Soaring, Where Is Resistance?

Leading internet streaming platform and device maker, Roku Inc (NASDAQ:ROKU), has been one of the hottest stock in the market for most of 2019. In fact, since August 6, 2019 the stock has soared higher by more than 70.0 points and currently trades around the $166.00 level. When trying to find and figure out how high a stock could go we can apply several techniques using technical analysis. One of my favorite tools to use is the Gann Wheel in combination with other technical chart patterns and tools. At this time, the Gann Wheel is telling me that ROKU stock could reach the $172.00 area. As you all know, the stock is already very extended and overbought, but the trend is up and it is very difficult to fight the trend.

Therefore, if you want to speculate on a pullback in ROKU it is best to play the stock using put options. This way you only risk a small amount of capital and can possibly capture a large percentage gain. Remember, a stock like this is certainly a take-over candidate so trying to short it outright presents too much risk in my opinion.

Nick Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Why Teva Pharma $TEVA Is A Screaming Buy

Dark clouds are hovering over Teva Pharma Industries (TEVA) but light is starting to shine through. Let me blow your mind with this simple analysis. First, let’s set the scene. On August 15th, 2019, Teva made a new multi-decade low at $6.07. Since then the stock has inched higher. Yesterday, news broke that Mallinckrodt (MNK), another opioid maker announced they may have to file for bankruptcy. In a 1 for 1 world, this should have been devastating for Teva, the worst news yet for the sector. Teva should have been crushed and taken out the $6.07 low from August 15th. However, it did not and has rallied sharply off the morning lows. This is VERY bullish for Teva Pharma.

The general rule states: When a stock does not make lower lows on worse news, accumulation in the shares is has started and is heavy (usually by institutions).

If big institutions are accumulating shares of Teva, thus not enabling it to make new lows, this is extremely bullish for shares of Teva Pharma Industries. It should signal a turning point in the stock and maybe for the sector. I could fill your head with lots of other things like countless technical indicators like MACD or RSI that are oversold. But the clearest signal is Teva not making a lower low on worse news for the sector. This is simple analysis but extremely effective. The upside target on this is $10 in the next month or so. A year from now, we could be talking about Teva at $25 or higher.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

As Bond Yields Jump These Industry Groups Will Suffer As Others Gain

Today, yields on the 10-year U.S. Treasury Note and the 30-year US Treasury Bond are moving sharply higher. This move in bond yields will certainly affect many industry groups. Some of the sectors that will be negatively affected by higher bond yields include home builders, Real Estate Investment Trusts (REITS) and utility stocks. Obviously, these important sectors have been major winners in 2019. These industry groups should now be avoided as investments if yields continue to rise. Now please understand, a one-day move with higher bond yields does not make a new trend, but it is worth watching.

The big winner in the market if yields continue to rise will be the financial stocks. As you can see, stock such as JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC), Bank of America (NYSE:BAC), Citigroup (NYSE:C), Morgan Stanley (NYSE:MS) and Goldman Sachs (NYSE:GS) are all having big moved higher in their share prices today. Other sectors that could benefit include insurance companies, brokerage firms and private lenders.

Nick Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Electric Car Maker NIO Hammers Breakout

Electric car maker NIO Inc. (NIO) is hammering an epic breakout level. When it breaks, the stock has significant upside to $4.50 from its current $2.92 level. This is a beautiful stock chart setup for investors and traders who are looking for a big mover in the next few days/weeks. The key is watching for the breakout and then jumping on. It appears that the $3.00 wall in the stock is the breakout point. A daily stock price close above that level, sends NIO surging.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Gold Miners Retreat, Where Is The Next Major Buy Level? $GDX

Recently, the leading gold mining stocks have pulled back from their recent highs. The Vaneck Vectors Gold Miner ETF (NYSE:ARCA: GDX) topped out on September 4th 2019 at $30.96. Since that high pivot, the GDX has pulled back to its 50-day moving average around $27.91. Traders and investors must now watch the $26 level to be tested. this level was where the last breakout took place and often the institutional money will defend this area initially when retested. Other support levels below the $26.00 area include the $24.00 and $22.00 levels. Obviously, the $22 area will be my ultimate buying opportunity. This is where the GDX broke out to the upside despite having a bearish weekly base on the charts in May 2019. This level is where the institutional money is heavily invested and where they will usually step in again to defend the equity.

Nick Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Financial Stocks Rip, But Hit Resistance Here $JPM

Shares of JPMorgan Chase (JPM) and other banks/financial stocks surged for the third day in a row as interest rates spiked again. Higher interest rates mean more profit potential for the banks. While a beautiful bullish run, investors may want to temper their expectations of further near-term upside. JPMorgan slammed into a triple top today. This will likely result in a pause or consolidation period for up to a week before it can move higher. In addition, investors and traders will do well to remember the Federal Reserve meets next week on interest rates. This adds an extra layer of risk to the bank stocks. One wrong word from the Fed and banks could tank. If you are looking for further upside in JPMorgan, watch for a consolidation period (known as a bull flag). If this forms, there is significant upside to JPMorgan upon a break of the triple top.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Waste Management $WM Has Trashed This Week, Here’s The Trade

Waste Management Inc (NYSE:WM) stock topped out on September 5th, 2019 at $121.76 a share. Since that high pivot, the stock has declined by more than 7.0% to $112.26 a share. Traders should also note that the stock is now trading below its August 5th pivot which was a very strong support area. The stock is now getting a bit oversold on the daily chart so there will likely be some short term bounces, but lower prices are ultimately in the cards. One level that has caught my eye as major support is around the $102.00 area. This is where there is a major gap fill from May 31, 2019. There is also support from the 50-week moving average on the chart. This area should be solid for a long side swing trade in WM stock.

Nick Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Here’s The Next Major Gann Level For Slack $WORK

Throughout my trading career I have been able to isolate a lot of tops and bottoms in the market. One of my primary tools for doing this has been by using the techniques from the legendary WD Gann. While I prefer to use conventional technical analysis along with Gann techniques sometimes when trading new issues there isn’t enough chart data to work with. In that case, I will often just use the Gann techniques as a stand alone method.

Recently, one of the hot IPOs, Slack Technologies (NYSE:WORK), has come under heavy selling pressure. The stock debuted on June 20th 2019 and traded as high as $42 a share. Since that day, the stock has plunged and is currently trading a $25.05 a share. Many traders and investors are now wondering where the stock could bottom. While we don’t have a lot of chart data to work with the Gann wheel tells me that the stock should find solid support around $20.50 level. Now I will be looking for a bottoming pattern when the stock reaches that price area. Stay tuned and keep Slack Technologies (NYSE:WORK) on the radar.

Nick Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Sell: Apple $AAPL Hits Key Level

Shares of Apple Inc. (AAPL) tagged a major trend line connecting the last three pivot tops going back to April 2019. This likely means near-term resistance and a level to expect a pull back. I grabbed some $AAPL puts and added a swing short. While the line is getting pierced, it should not matter. Multiple metrics signal overbought. Add in the chart level tagged, the robot in me pulls the trigger.

Apple has been on a serious bull run as trade war relations have warmed in recent weeks. The stock was trading at $192 in early August 2019 and now sits above $225.00. Investors are banking on President Trump willing to give in on the trade detail to help his re-election campaign. Thus Apple nearing its all-time highs again. However, I am not sold on that and expect more hiccups before it is settled.

Based on the stock chart hitting the key trend line, I am expecting a pull back on Apple to $215.00 near-term. This is where I would likely take profits on my puts. I plan to hold the swing trade for a bigger move lower to $180.00

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Semiconductor ETF Nears Double Top

Shares of the semiconductor ETF $SMH inched towards double top on the daily chart. This is a classic resistance point on any chart. Expect a pull back in the semi’s in the near-term once double top is tagged/pierced. Markets continue to hope for a trade deal and are factoring in one in now. The market is also expecting no US recession and an extremely accommodative Federal Reserve. With hopes high in all regards, expect the rug to get pulled next week into options expiration.

Nick Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Microsoft $MSFT Forms Nasty Bear Flag

Shares of Microsoft (MSFT) are putting in a nasty bear flag daily stock chart formation. Technical traders know that this signals a sharp downside move coming in the stock. Based on calculations, the downside technical target is $120.00. The flag pattern itself will trigger when Microsoft trades below $135.00 on a daily closing basis. Note the stock chart below. Investors and swing traders can short the tech giant on a close below $135.00. Based on the chart pattern, it should trigger within days. If the pattern fails, it will be noted by a close above the all-time high of $141.68. This is a great risk/reward setup. Upside risk is under $7, downside target is $15.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Energy Stocks Pop, But The Trend Is Still Down, Here’s The Trade $XLE

This morning, all of the leading energy stocks are trading higher after an attack on an oil field in Saudi Arabia. Most leading energy stocks such as Exxon Mobil Corp (NYSE:XOM), Chevron Corp (NYSE:CVX), ConocoPhillips (NYSE:COP), BP Plc (NYSE:BP) and others are all trading sharply higher today on the back of this news. While crude oil and most energy stocks are strong today it should be known that the longer term trend is still down.

In fact, the Energy Select SPDR Fund (NYSEARCA:XLE) peaked in June 2014 at $101.52 a share. Since that high pivot, the popular ETF has been making lower highs on the charts. It is now trading at $62.66 a share. The next major resistance area for the XLF will be around the $68.00 level. That level is where the 50 and 200-week moving averages are currently at on the chart. There is also a pivot top resistance level in place from late April 2019. Traders should watch this key resistance level for a potential short trade or put option opportunity.

Nick Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Tomorrow’s FOMC Comments Will Move Gold

Tomorrow afternoon, the Federal Open Market Committee (FOMC) will conclude its two day meeting. At this time, the central bank is expected to cut the Fed Funds Rate by 25 basis points to 1.75% – 2.00%. Traders and investors should note that this rate cut is already factored into the market. The FOMC statement could be more important to the market than the actual rate cut itself. Often, during a central bank announcement precious metals, bond yields, the U.S. Dollar Index (DXY) and equities will all be in play and that will likely be the case again tomorrow.

Gold and the precious metals have been pulling back recently. Gold futures (GC) put in a short term pivot top on September 4, 2019 at $1566.20 an ounce. Since that high pivot gold futures have declined back down to 1512.00 an ounce. Should the FOMC sound a bit hawkish (less easy money) the gold market could retreat a little more. If the central bank comes out and is very dovish (more easy money) then gold could move back up to its old highs in the near term. So traders and investors will have to listen carefully to the statement and wording of the Federal Reserve. In the case of gold weakness tomorrow, traders should watch for major daily chart support around the $1450.00 level.

Nick Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Teva Pharma Signals Big Move Coming $TEVA

Shares of Teva Pharma (TEVA) continue to see major accumulation in the face of bad sector news. This is extremely bullish. Recently, companies in the sector have teased bankruptcy with some actually filing. Teva has not made new lows on this news and is actually higher. This tells you big money does not believe Teva will need to file and will survive all the lawsuits from the opoiod epidemic.

The biggest chart signal for major upside is the bull flag formation on the daily chart, just above the daily 50 and 20 moving averages. This setup is a high reward setup. Based on calculations, 6 month target is $13 while the 1 month target is $10.

This setup is one swing traders dream about. It is multi-factor and historically plays out 80% or more of the time. The added big money accumulation is significant as well.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Corning $GLW Sunk After Cutting Its Outlook And Still Has Lower To Go

A couple of days ago, leading specialty glass and ceramics manufacturer, Corning Inc (NYSE:GLW), tumbled after cutting its outlook for two large parts of its business. Corning warned that it is reducing its expectations for its Optical Communications and Display Technologies segments. The stock was trading around $34.00 a share in late July. After the recent news, share of GLW are now trading around $27.90 a share. Currently, the stock is sitting right on its 200-week moving average. This key moving average has been holding as support since mid-August. The longer the stock bases along the 200-week moving average the more likely it is to break lower. The next major support level for GLW will be around the $24.50 level. This support area is where the stock broke out in January 2017. Often, stocks will be defended when prior break-out levels are retested.

Nick Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Tilray Inc $TLRY Bull Flag Ready To Blast

Share of Tilray Inc (TLRY) are putting in a gorgeous bull flag consolidation pattern. This signals major upside in the coming days. Likely as early as next week a move could begin with an upside target of $39.00 for the current $30.72. For a breakout of the bull flag, look for any daily close above $31.75. This should ignite the blast-off.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

FedEx Corp Is Still Sinking, Here’s The Only Trade Level I Could Find

Last week, FedEx Corp (NYSE:FDX) plunged lower after reporting earnings. The company gave a pessimistic view of the global economy and cut its guidance. They also cited political uncertainty and trade tensions for the weakness. Earlier this year, the company announced that they would not renew a contract with Amazon (NASDAQ:AMZN) and this could also be weighing on the bottom line.

FedEx stock is now trading at new multi-year lows. The stock peaked in January 2018 at $274.66 a share. Since that high in the stock, the shares have dropped lower by 46.0 percent and currently trade around the $146.00 area. Traders should note that the stock has now broken below its 100-month moving average. This is a sign of weakness and likely signaling more selling pressure ahead for the transport giant. The only level that would get me interested in the stock would be around the $125.00 level. This is where there is a major retrace support area from the 2009 lows and a pivot support level from January 2016. This is a solid area for a long side trade in FedEx Corp stock. Until then, I would likely stay away from the stock until the chart changes or tell me something different.

Nicholas Santiago
InTheMoneyStocks