Verified Investing's Blog (109)

Oil has rallied over the last two weeks substantially. In fact, after falling from $52 to $39.20, it has retraced exactly 50% back to $46.40. This is a key Fibonacci retrace resistance level. In addition, oil has also slammed into the tracking ETF $USO 50 and 200 daily moving averages. This is a multi factor short on oil level. The pull back should begin tomorrow. Get on board and enjoy the ride. I am buying SCO here, a 2x short oil ETF.

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Twilio Inc (NYSE:TWLO) has major institutional distribution selling over the last two trading days. Most investors have no idea how to read this but I am here to explain it. First, notice the massive volume over the last two days. Today alone, Twilio traded over 12 million shares. The last two days have been the biggest volume the stock has seen since it IPO'ed in June 2016. The volume is coming at the all-time highs. This combination tells you there may be institutional distribution. What…

Yesterday, news hit the markets that Warren Buffet had increased his stake in Apple Inc.(NASDAQ:AAPL) substantially. The stock moved higher in early trading but has since reversed and gone negative. The reason? A simple gap fill on the daily chart, plus an extended move. Instiitutional money had long since been aware of the increase in Buffet's position making the only buyers today retail investors. The bag was passed to them in early trading as institutions unloaded. Then, Apple Inc. sank.…

Apple Inc. (NASDAQ:AAPL) has been on a one way train after reporting better-than-expected earnings almost three weeks ago. Since earnings, the iPhone maker is up almost 15%. While investors are cheering there may be a cloud developing over the stock. Based on the extension move, it is reading heavily overbought in the near term. In addition, there is a major gap fill approaching at $110.00. The combination of these two factors (assuming $110.00 is tagged) should yield a pull back in…

Twilio Inc (NYSE:TWLO) IPO'ed in late June. The company is a cloud communication play that enables developers to build, scale and operate within the cloud on a pay-as-you-go service. The company is not profitable, losing north of $38 million last year. Revenues were in the $200 million range.

The company came to market, trading on its first day around $25 per share. After grinding higher over the course of a month to $45, an explosion has taken place. In the last three…

Hain Celestial Group Inc (NASDAQ:HAIN) announced today that it will delay its fourth quarter and full year financial results. In after-hours trading the stock took a major beating, dropping to $41.26. This is an after-hours drop of over 22%. This major collapse in Hain Celestial offers a potential trading opportunity for tomorrow. After analyzing the stock chart there is a key support level at $37.75. Should the stock hit this level tomorrow during market hours, it is a buy. A likely bounce…

J. C. Penney Company Inc (NYSE: JCP) has made a tremendous move over the past 3 trading days surging up from $9.15 to $11.29. The almost 25% move is a result of earnings, but regardless, when you get a 3 bar surge like this, on volume that is significantly higher than normal, a short term top is typically a day or two away. The move simply cannot be sustained and price needs to pull back. AND, with the crazy move up, a larger pull back than normal is expected. The bigger the move up, the…

As the S&P 500 hits all-time highs, Alphabet Inc (NASDAQ:GOOGL) struggles. There are a couple reasons for this. The first is that this is a double top on the stock chart. This same level as the last all-time high on Alphabet going back to February 2nd, 2016. The second is this is the major high after-hours weeks ago when Alphabet reported earnings. The last reason could be much more telling about the future of the stock market. Alphabet is a leading stock, if it stops leading, could it…

Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is taking a beating today after news hit the wires that they were under a U.S. criminal probe into their Philidor ties. Prosecutors are looking into whether or not the company hid its ties to the now bankrupt Philidor and thus defrauded insurers. Sounds scary doesn't it? Many investors are selling on the news but honestly, smart investors knew this was coming. To me it is nothing but old news and will get hashed out. Maybe a fine, maybe the old CEO…

United States Steel Corporation (NYSE:X) has a classic bullish chart retrace in progress. This means that after a monster rally in the equity, it is pulling back. The pull back is a potential entry for buyers if they know the correct level to look for. The level to buy long is at $20.00. Not only is this a psychological level but it is also a major pivot on the stock chart. U.S. Steel is currently trading at $22.68. It will likely achieve buy entry target within the next few trading…

Shake Shack Inc (NYSE:SHAK) reported second quarter earnings of $0.14 on revenue of $66.5 million. The stock sold sharply after-hours trading from a closing price of $40.87 to $37.05. Institutional traders are buzzing about a key support level to buy at $33.50. Considering the amount of chatter at this level, I will be looking for a buy here. Signup to Verified Investing. Why? Verified Investing is an independent website that is dedicated to policing the financial industry and giving the…

Markets have reversed off all-time highs on an intra-day basis. While they are only slightly lower on the chart, there is a potential topping tail forming on multiple major indexes and ETF's. The level institutions are paying close attention to is revealed in the chart below. If at 4PM ET, the $SPY closes below this line, it is likely markets will begin to see selling with the first target at $216.35.

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NVIDIA Corporation (NASDAQ:NVDA) trended sharply higher early in the day, only to reverse and close near the flat line. With a closing price of $58.89, +0.15 (0.26%), NVIDIA put in a topping tail. Topping tails are reversal signals when they occur at 52 week highs. Considering NVIDIA reports earnings on Thursday, August 11th, 2016 after the stock market closes, I think it is safe to say smart money, potentially institutional money was selling. Last night, I alerted everyone I was puts…

I generally avoid buying calls or puts just days ahead of earnings. Often there is a hefty premium in these options contracts that does not give you a good risk vs reward for making a profit. However, that is not the case in my humble opinion on NVIDIA Corporation (NASDAQ:NVDA). This stock has sharp pull back written all over it going into earnings on Thursday, August 11th, 2016, after the stock…

Bristol-Myers Squibb Co (NYSE:BMY) has taken an absurd beating over the last two trading days. What does this mean for smart investors? Possibly a great buying opportunity! That is what I am seeing based on the technical chart analysis I have done. The stock fell off a cliff after one of their biggest, most important drug studies failed to reach its endpoint. The stock collapsed from $75.25 to $60.00 in two trading days. Today, the stock is signaling a buy off the $60 key support level. Not…

SAExploration Holdings, Inc. (NASDAQ:SAEX) had a monster explosion last week. This low float micro play was picked up by traders and ran from $9.00 to $75.00. Yes, you read that right. This incredible move gives traders a second opportunity to buy a high risk play as it has pulled all the way back to $17.00. I have begun to nibble down here. The key is to keep share size super light as there is a ton of risk. I started a small position at $17.00 and will bad small every $0.50 lower. I am…

Interest rates surged on Friday after the Non Farm Payrolls Report showed more jobs added in July than expected. The 10 year yield jumped over 10%. Based on the 10 year yield chart, interest rates are headed higher. The first target is 1.7%, the second target is 1.75%. These levels will likely be hit in the coming week.

What Does It Mean For The Stock Market?

There are only two things at this point that can hurt the market in the near term. The…

As a fellow pro trader pointed out late last week, JPMorgan Chase (NYSE: JPM) has been surging with the rise in yields. If you read the charts, though, it appears this surge could be nearing an end in the short-term. Just a little higher from Friday’s close of $66.30, at $67, $JPM will hit significant resistance. This resistance is from an up-sloping trend line dating back to February coupled with where a prior breakdown occurred. See this on the daily chart below. $JPM should experience a…

The markets are flat again today as all eyes turn to the Non Farm Payrolls Report tomorrow. Expectations are for a gain of approximately 175,000 jobs in the month of July. So what happens if the number comes in sharply above or below estimates? Anything too high or too low will shock the markets and cause selling. Below I reveal the ranges, along with the likely stock market reaction.

1. Neutral Number

Any number between 150,000 and 200,000 will be looked…

Amazon ($AMZN) bounced today off an up-sloping trend line that starts in February 2016. This trend line has been amazing, holding price in a near vertical climb. How To Trade It As long as Amazon stays above that trend line, it has the ability to go higher. It is far too overbought at this juncture to buy, but wait to short until it cracks that trend line. Once below it will be an epic drop, potentially north of $120.00. That fall would take Amazon to at least the current 200 daily moving…