All Blog Posts (425)

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…

McDonald's Corporation (NYSE:MCD) has a head and shoulder pattern on the daily chart. This is a bearish chart pattern with a calculated target down to $102.00. The current price of McDonald's is $117.44, -0.26 (-0.22%). The key is it MUST break the neck line first. This has yet to happen which means the pattern has not triggered. If you are looking to short McDonald's stock, don't do it until you get a close on the daily chart below $116.50.

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When I’m analyzing charts to find the most attractive trades, I’m looking for a number of different factors. Here are my top three I always pay attention to: 

1. VOLUME: I look for equities trading over 1 million shares each day. At lesser volume, support and resistance levels tend to overshoot significantly adding more risk to a trade than I’m typically comfortable with. I look to see if recent trading volume has increased. When it is higher than normal,…

Dish Network (NASDAQ: DISH) dropped 8% today on news they are planning a $2 billion convertible notes offering, and the fact it did so on 10 times its average trading volume caught my eye. When price drops on volume that is several times the norm , it signals fear and panic, and could be the best time to buy. But, you never want to buy on this volume factor alone, especially after news. I'm putting $DISH on my watch list. I'll wait at least another two days before jumping in on any trade.…

The S&P 500 continues to be stuck in a range. This 1% range on the market has lasted now for 13 days. Friday and today the S&P has peaked above the range briefly, only to be sold into. So what does this tell us about the stock market?

1. Oil has been crushed 13% in the last 13 days. The markets holding up is a tribute to the great earnings recently from AAPL, FB, GOOGL and AMZN. But without those great news stories, what is the catalyst to fight off a continued drop…

Every evening I scan hundreds of charts. I believe all good investors and traders do the same. The more you see, the more likely it is you find something worth keeping on your watch list for the next day or so. Tonight I found Home Depot. The stock is into a trend line that connects from the highs of 2015 to the high in May 2016 to its current level. Obviously, this is some resistance on the chart. Earnings are August 16th, 2016, before the stock market opens. I will be watching this closely…