Verified Investing's Blog (109)

Did you see the price action on Alibaba Group Holding Ltd (NYSE:BABA) today? The stock opened sharply higher before seeing about 1 hour of hard, heavy selling. This took the stock from a big gain to negative. After the first hour, Alibaba has slowly floated higher back to the flat line and slightly positive on extremely light volume.

So what does this mean? Why is it so significant? The heavy volume selling which last an hour was major institutions unloading. They always sell…

Using a measured move method, I calculated the probable top on Twilio Inc (NYSE:TWLO). The stock will continue to squeeze higher until $83.00. The current price is $69.75. The method used is simple when you have a daily chart that has a big move higher, then a long consolidation pattern and another big move in progress. Simply take the low to high of the first move (on TWLO approximately $30) and add that amount to the low of the next move in progress. The low of the current move on TWLO is…

Oil is setting up for the start of a 50% move in the next week. With the triangle pattern on the commodity chart coming to a head, oil will either have to breakout or breakdown. This will be the start of a monster move that every trader should be in. If oil breaks out of the triangle pattern, spot crude will head to $64. If oil breaks down out of the triangle pattern, it will head to $28. In other words, whatever the direction break, there is either 50% upside or downside. Catch this trade…

Tempur Sealy International Inc (NYSE:TPX) is diving lower on a weak outlook. The stock is crashing after-hours, trading at $-17.75 (-23.84%). I am going to be focussing on a key support level tomorrow to buy Tempur Sealy. The level is $49.85. This is a double bottom level and a  breach of $50, which will work as a spring to pop it back up. This could be good for $1-$3 upside tomorrow alone, should it trigger.

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Black Swan Event: An unpredictable or unforeseen event, typically one with extreme consequences Deutsche Bank AG (NYSE:DB) may be the black swan no one is talking about. The European bank opened below a major triple bottom support level at new lows.

It has been widely said, that if that triple bottom support level broke, it would cause Deutsche Bank to spin out of control and into default. An event such as this would trigger a domino effect among other financial institutions, mainly…

There is one simple reason why I am buying the 3x long biotech ETF $LABU into the stock market close today. There is a Presidential Debate tonight and biotech has been under pressure the last few trading days, afraid of what targeted attacks it would get from the candidates. Ultimately, there will be relief when it is over, not matter what is said. The fear of what may be said is always worse than the actual event, which means a sharp biotechnology rally tomorrow. This is literally a 1-3 day…

Spot crude oil surged dramatically higher today after reports of a 14 million drop in inventories hit the wires. Spot crude oil is trading at $47.53, +2.03 (+4.46%). While a monster move, big money is talking about a major resistance level approaching at $47.75. Many pro investors and traders are looking for a potential short here based off the trend line connected between the recent highs (see the chart below). Also, institutional money is telling me that the up move in the last week…

I am short Apple Inc. (NASDAQ:AAPL). For those that clicked *Get Alert* you are in with me. It is in my portfolio, a verified swing trade with a short entry of $110.14. The current price is $105.70. For those that do did not opt into this trade, you will see it when I close Apple out, on my verified track record. I shorted specifically at the $110.00 price level because that was a technical resistance point on the stock chart. There was a major gap fill on the chart, plus on the day I…

Facebook Inc (NASDAQ:FB) will be under $100 by the end of the year. Analysts are beginning to buzz about some of the news that has hit the stock lately. Just today, it broke that Facebook had over estimated key video metrics for two years. The stock is sharply lower. This is just one more nail the the coffin. The biggest one came a month ago when Procter & Gamble Co (NYSE:PG), the biggest spender on advertising in the world said they were moving away from highly targeted Facebook ads.…

Big Wall Street Insider Showed Me This: I Responded By Shorting The Russell 2000

I rarely get good information from my sources. I usually rely on studying the stock charts and doing research into companies myself. This time it is different. A well known Wall Street insider who I have looked at as an idol, showed me the chart trend line seen below. I immediately shorted the Russell 2000. The expectation is for the pull back to begin next Monday according to him, but it…

Walt Disney Co (NYSE:DIS) will be the headline best performer in the Dow Jones Industrial Average over the next sixth months. I am looking to accumulate a large position based off technical and fundamental signals. This will be the staple of my account, with me trading around it with other positions.

1. The stock has fallen from its 2015 high of $122. This is a steep 25% discount. With a brand that will live forever and a relatively low P/E compared to the…

Bristol-Myers Squibb Co (NYSE:BMY) is putting in a great bottom on the stock chart. My finger is on the buy trigger for a large block, but only when one specific thing happens. Notice the tight range Bristol-Myers Squibb is trading in as it makes the bottom? Smart investors such as myself are looking for it to break out to the upside. The second price moves above the current tight range, I will hit the offer with a big block. The odds are extremely high that when it breaks to the…

Buying this ETF will literally turn out to be the best decision of your life. There is proof but the Federal Reserve is trying to plug the holes and keep it from you. There statements hide the fear of what is coming, as they know they can only delay it, not stop it. The crazy thing is, their actions are giving you an opportunity to buy it at a discount before it continually climbs for years to come. The ETF is ProShares UltraShort Lehman 20+ Yr (NYSEARCA:TBT). This is a short the 20 year…

Chipotle Mexican Grill, Inc. (NYSE:CMG) just tagged a major technical support level that dicates it is a screaming buy to investors. You can see this trend line in the stock chart below. Chipotle has also put in a huge base over the five months, signaling a low risk trade to the buy side. Lastly, hedge fund king Bill Ackman loaded the boat just weeks ago at a higher price. This gives average investors not only a technical signal to buy but also a fundamental reason. Following one of the best…

Valeant Pharmaceuticals Intl Inc (NYSE:VRX) likely broke out today. Recently, it has turned the corner, making higher lows and higher highs. This is extremely bullish price action The stock is flagging in one of the most perfect bull flags you will ever see. The low today (which tagged the daily 50 moving average) and reversal to the upside could be the start of the big breakout to a new higher high. Big investors have been accumulating for long periods as this turn around story takes hold.…

Facebook Inc (NASDAQ:FB) will likely see as much as a $20 drop in its stock price based on both technical and fundamental factors. With earnings a month away, the stock is forming an extremely bearish flag pattern on the chart. The downside should begin playing out within days. The catalyst for major downside though, will occur when Facebook Inc reports earnings. Multiple companies have stated they are no longer seeing a profitable return on Facebook ad spend. With major companies pulling…

Deutsche Bank AG (NYSE:DB) was nailed with a $14 billion fine from the DOJ last week because of shady actions during the financial crisis. While a fine was expected, the massive size of the fine was not. There is palpable fear that Deutsche Bank will not be able to pay the fine and may be insolvent. Even though it is expected that the fine will be reduced by more than 50%, it is still more than was expected. The stock is hammering on a triple bottom on the chart. While this is support,…

Natural gas broke out on the daily chart today. This is a strong breakout with significant upside between 10-20%. The United States Natural Gas Fund, LP (NYSEARCA:UNG) can be seen in the stock chart below hammering on the trend line multiple times until it broke out today. Chatter is strong amongst institutions that a squeeze could hit in the next few days. Price action dictates natural gas is a strong buy here.…

Oil fell again on Friday, closing at $43.23. Investors should be very worried as odds are now favoring a fall to $28 per barrel. The reason is a head and shoulder pattern on the spot crude oil chart. A head and shoulder pattern is a bearish pattern that triggers if the neck-line is breached. Pro traders and investors know that if price violates the neck-line a calculated target can be figured out. This would give the exact downside move on oil. The calculated target is $28/barrel. The…

Most investors lack the basic knowledge of reading a chart. Knowing how to read a chart allows you to tell the future. In other words, reading it correctly lets you know if the stock will go up or down in the next day, week or month. The simple technique I am using is based off the NASDAQ 100 chart and is an indicator of whether the Federal Reserve will cause a stock market rally or hard sell off on Wednesday, when they give their much anticipated FOMC statement. The reason I am using this…