Forget FANG, This Stock Is The New Market Leader $MSFT Almost everyday we hear traders and investors talking about the FANG stocks as the market leaders. While Facebook (FB), Amazon (AMZN), Netflix (NFLX) and Alphabet (GOOGL) are extremely important tech bellwethers, they are not leading like they have in the past. The new leader of the stock market is Microsoft Corp (MSFT). Microsoft's market cap is now above $1 trillion and the stock is making new all time highs. The trend is up for the stock, MSFT is also trading above every major moving average on just about every important time-frame. Microsoft is taking market share from these tech giants and others in a very quiet way. This is by far the most important stock to follow for leadership in the stock market right now. Nicholas Santiago InTheMoneyStocks
ALERT: Gold $GLD Chart Signal... Possible topping tail on $GLD forming. Note the chart below... Gareth Soloway InTheMoneyStocks
Watch this Technical Trade Level For Zoom Video $ZM Zoom Video Communications Inc (NASDAQ:ZM) was one of the hottest initial public offerings (IPO) of 2019. The company came public on April 18, 2019 at $65.00 a share and was an instant success. ZM stock traded as high as $107.34 a share on June 20, 2019 before seeing some sharp selling over the past four trading sessions. Traders should note that the stock has a big gap fill on the chart at $79.43 level. Very often gap fills will serve as very good support when tested. This gap fill is actually stronger than most because it comes from a failed bearish pattern which will often signal very strong institutional sponsorship at that level. So traders should keep an eye on ZM stock around that $79.50 area. Nicholas Santiago InTheMoneyStocks
Oil Alert: 4 Factor Resistance Tagged Oil surged higher in trading today after inventories showed a surprise drop. Continued tensions with Iran have added to geopolitical risk as well, pushing the price of the commodity higher. While the news seems bullish, near-term tops are made in this manner. Oil tagged four factors of resistance today. First, oil hit the daily 50 moving average on the $USO. Second, the USO tagged the daily 200 moving average. Third, oil tagged a major gap window on the USO chart and fourth, oil has a daily time count. This gets the top pro traders to inch into shorts here at the $60/bbl level or $12.43 on the USO. They are looking for a swing trade short (quick drop in price). Gareth Soloway InTheMoneyStocks
China Stimulus & Technical Analysis Says To Buy Nio Inc $NIO Most of the investing public is running scared from shares of China electric car maker Nio Inc (NIO). However, after falling from a 52 week high of $13.80 to its current $2.58, investors may want to take a second speculative look. China stimulus is getting into the system and more is coming. In fact, China will be forced to compete with lower interest rates and additional stimulus from the European Central Bank, Federal Reserve and Bank of Japan. The government looks at electric cars as essential for the future power of China by eliminating smog in the major cities. Car makes like NIO will see additional help and support from the Chinese government. While deliveries have fallen lately, that is likely within a month or two of changing as the stimulus kicks in. The trade deal, while it may go on for a little longer, will end. The end date will likely be prior to the 2020 elections. At 52 week lows, any hint of a cease fire or agreement between the United States and China will send shorts running. President Trump needs a win going into the election and a deal with China that stimulates the economy might be the one thing that could help him win (and he knows it). On a technical basis, NIO Inc has already made a pivot low on June 14th at $2.35. After that low, the stock ran over $3.00 and is currently in a classic bull retrace. In addition, technical metrics like the RSI and MACD are showing positive divergences, signaling further upside is likely. The stock is still oversold on a monthly and weekly basis signaling there is still upside to go. I have a technical target in the next couple months of $4.35. That is a potential upside move of 70%. Hedge funds continue to hold large positions with a long term view. In the last two weeks, sellers have started to fade with volume becoming lighter while large block buyers have increased. Please note, this is a speculative call on a small/mid cap stock. Any position should be small and part of a diversified portfolio. Disclosure: Chief Market Strategist Gareth Soloway holds a long position in NIO Inc (NIO) Gareth Soloway InTheMoneyStocks
This Day Trading Tip Can Save You From Bad Trades And Even Make You Lots Of Money Who would not want to be a day trader? You wake up in the morning and go straight to your computer and start to look for stocks and equities that could make you money in minutes to hours. A day trader can basically work from anywhere with a decent internet connection. There is no dress code, so many day traders are actually trading in their pajamas every morning. You can also work as little or as much as you want, so you set your own schedule. It sounds like the worlds greatest profession, but without proper knowledge the average person who attempts the day trading world will not last a year in the business. Day traders try to make money using two simple techniques. The first technique is called scalping, this is when a trader can isolate a stock declining or rising sharply into a major support or resistance zone. The trader will generally try to capture a small gain in the equity they are trading. The scalp play will usually last a few seconds to an hour depending on the particular equity, but the trade is expected to be done quickly and it usually involves a smaller time-frame chart. Then there is the day trade. This is where a trader will look at multiple time-frames and try to isolate a pattern that consistently plays out on the charts over and over. This trade usually last several minutes to several hours. Due to the fast trading action day trading can become very stressful and will require a lot of concentration. Most day traders will find a couple of chart set-ups that they favor and continually look for those patterns and setups to appear before executing a trade. Today, I'm going to share one simple tip that can help save scalpers and day traders from daily heartache. I simply call this the light volume rule. Often, I find many day traders trying to sell short equities at a resistance level on the chart. While this is fine and usually a good way to make money it is very difficult to do under certain conditions. You see, as a day trader we must examine and take the pulse of the market everyday. We do this be looking at the volume in the SPDR S&P 500 ETF Trust (NYSEArca:SPY). You see, when the SPY volume is light it will generally favor market upside in the S&P 500, NASDAQ Composite and the Dow Jones Industrial Average stocks after 11:00 ET. I cannot tell you how many times a trader will try and short an equity around the lunch hour when volume starts to drop off. So here is rule number 1, if the SPY is trading less than 35 million shares by 12:00 pm ET please be careful trying to day trade equities on the short side, especially the SPY or S&P 500 e-minis contracts (ES-U19). There is simply a lack of institutional selling pressure when the volume is light. It should also be noted that the financial institutions move markets. It is not the person at home with an E-trade account watching fast money that moves the markets, it is the large financial institutions that carry the real power. Traders and investors can easily look at this chart and notice that the market volume is extremely light. Please note, the low of the day was made at 11:00 am ET. Since that 11:00 am low the markets have slowly rallied higher, making any short trade very difficult. Hopefully, if you are new to day trading you will adopt this policy of monitoring the volume in the SPY every trading session. It has helped save many day traders from making a bad trade during the light volume part of the session. Hopefully noticing this important intra-day volume trend that has been working for years can also help you make a lot of money on your long side day trades. Nick Santiago InTheMoneyStocks
$XLU is our ETF opportunity for buying long. $HAL $ABBV $WM $SHW $NFLX $TXN are our stock opportunities for buying long, but with higher risk. $PSX $AXP $UNH $ECL $TSLA $FB are our stock opportunities for selling short, but with higher risk than our top suggestions. More information about buy price range, charts and expected buy returns are given in our Closing Bell video (6/28/2019), only on JusTrading YouTube channel, check it out. Remember to subscribe and click the bell to be up to date with our daily stock analysis and suggestions that we give it for free!
New top suggestion is $OXY for buying long, and $AMT $SCHW $TMUS to hold them long. $NFLX $NVDA $HAL $MS $BMY $BA are our stock opportunities for buying long. $TSLA $ORCL $NEE $NEE $PSX $USB $PFE $ECL are our stock opportunities for selling short, but with higher risk than our top suggestions. $BLK $GD $T to hold them short. More information about buy price range and expected buy returns are given in our Mid Day video (7/2/2019), only on JusTrading YouTube channel, check it out. Remember to subscribe and click the bell to be up to date with our daily stock analysis and suggestions that we give it for free! Thanks.
Here's Another Market Conundrum, Cut Rates Or Don't Cut Rates? This morning, the highly anticipated June non-farm payroll was released at 8:30 am ET. The report was much better than expected with 224,000 new non-farm jobs announced. The expectation was for 160,000 new jobs, so this was a hot number. Private payrolls also were better than expected with 191,000 new jobs, expectations were for just 160,000. The S&P 500 Index has been soaring since June 3, 2019 when it traded as low as 2728.81. At that low, the Federal Reserve said it would do what was necessary to keep the expansion going. This comment fueled the S&P 500 Index to new all time highs. Recently, the markets have been surging higher on the back of weak economic data and the anticipation of a rate cut by the Federal Reserve later this month. Today's strong job number now puts the Federal Reserve in a tough position to raise rates. Bond yields on the 10-year U.S. Treasury Note are surging higher today by 11 basis points to 2.065%. Earlier this week, yields on the 10-year have been below the psychological 2.0% level. In this bizarre stock market it seems that bad news is good news and good news is bad news. The European Central Bank (ECB) and the Bank of Japan (BOJ) both have negative rates already and this is a problem for their markets and economies. German economic data was very weak today as manufacturing orders dropped 2.2% month on month in May and down 8.6% from the same month in 2018. This is probably why the U.S. Dollar Index (DX) has been very strong over the past year or so. Weak European economic data will keep money coming into the U.S. Dollar. The yield curve has now been inverted for about a month now. If yields on the 10-year U.S. Treasury Note rise then the markets will be less likely to price in a 50 basis point rate cut in late July when the FOMC meets again. Many traders and investors are banking on this cut by the central bank, hence the recent stock market rally on weak and bad news. Perhaps, the Federal Reserve will cut rates by just 25 basis points in late July. Will the markets be disappointed by this as it has already been expecting a 50 basis point cut? If rates rise significantly from here then it could signal that there might not be a rate cut at all in late July. That may not be good for stocks since they seem to be hoping and expecting more easy money policies by the central bank. Here we are again, the markets face another conundrum. Nick Santiago InTheMoneyStocks
