Euphoria Is Back In The Semi's, This Is Where I Short $SMH The Semiconductor ETF (SMH) continues to be strong after Apple (AAPL) received some upgrades (semi's are the supply chain for iPhone's). As the SMH surges higher, a gap fill looms large on the daily chart at $117.65. Once achieved, I plan on buying the SOXS (3x Short Semi ETF). I am a believer there is still weakening to go in the global/domestic economy and the semi's are over-priced. With an overbought SMH and the technical gap fill, this is the spot. I Look for as much as a 25% correction in most semiconductor stocks from this level. Gareth Soloway InTheMoneyStocks
Epic Short Level Nears On Apple Inc $AAPL Shares of Apple Inc (AAPL) continue their march higher as more investors jump on the bull bandwagon. With a P/E ratio approaching the high end of the mature company historic levels, investors need to turn their attention to the charts. The chart tells investors that $AAPL has surged from a low in June of $175 to a current high of $206. This monster move signals an overbought situation, but not a defined short signal. That short signal comes to fruition if/when $AAPL trades to $211.75. At this price, the chart shows an epic gap fill plus a double top. This two factor short signal will likely surge investors well for a large drop in the stock price. A near-term pullback to $193 should be seen within weeks of this level being tagged. Gareth Soloway InTheMoneyStocks
Toll Brothers $TOL Struggles To Catch A Bid, Watch This Level Leading home-builder stock, Toll Brothers Inc (NYSE:TOL), has been steadily declining since peaking in mid-May 2019. At that time, the stock was trading as high as $39.58 a share, but has been slowly falling lower on the charts. Today, TOL stock is trading below its important 200-day moving average. This is usually a sign of further weakness for the shares in the near term. Traders and investors must now look around the $30.00 area for major chart support. This is where the stock was defended in October 2018 and also where the stock reversed a sharp weekly down-trend. This level will likely be solid support when initially retested. Nicholas Santiago InTheMoneyStocks
Sohu.com $SOHU Signals Reversal, 30% Upside Near-Term Shares of Sohu.com (SOHU) are moving higher today, following a beautiful, classic bottoming tail yesterday. Bottoming tails are significant bullish signals This reversal in trend is major for technical traders as the Chinese stock is trading at multi-year lows. While the chart sets up for a surge back to $17.35 in the near-term, traders are particularly intrigued by its total cash per share of $47.97. To state this clearly, the stock is trading at $13.50 while it has a total of $47.97 in cash per share. To put this another way, the market cap of Sohu.com is $530 million while it has $1.88 billion in cash. Based on these metrics alone, this stock is a screaming buy. Just in the near-term, I have an upside target of $17.50. Likely achieved within a month. Sohu.com is a marketing/media company in China. Sentiment has gotten way too negative on this sector partly because of the China slowdown but also because of the on-going trade war. As most analyst will tell you, the trend war will likely be over before the US presidential election in 2020. In addition, the amount of stimulus thrown at the Chinese economy by the Chinese government has been huge. This will start to trickle down into business spending. At the current valuation, Sohu.com makes a ton of sense as a bottom play with significant upside potential. Disclosure: Chief Market Strategist Gareth Soloway from InTheMoneyStocks.com owns shares of Sohu.com (SOHU). Gareth Soloway InTheMoneyStocks
NIO Inc $NIO Starting Its Next Leg Up, Target $5.00 Shares of NIO Inc (NIO) ran from $2.30 to $4.00 recently. After two weeks of consolidation, the Chinese electric car maker appears to be headed for another big leg higher. With a beautiful bull flag on the daily chart, a necktie has also formed between the 20 and 50 moving averages. This adds extra spice the propulsion of NIO. The stock is surging today and likely will take out the $4.00 high, headed over $5.00. Note the chart below. Gareth Soloway InTheMoneyStocks
Micron Tech $MU Nears Multi-Factor Short Sell Level Shares of Micron Tech (MU) are up a whopping 50% in the last month. Investors are constantly wondering where to short this overbought semiconductor stock. The answer is, "not quite yet!". The stock is trading near $48/share and the top traders in the world plan on shorting it at $49.50. This level is made up of an epic gap fill and a measured move. Add in multiple extreme overbought indicators and swing traders have an amazing risk/reward short setup on Micron Tech (MU) at that level. Gareth Soloway InTheMoneyStocks
What Are The Central Bankers So Worried About? Stocks in the United States have soared since June 4th, 2019. This is when the Federal Reserve Chairman, Jay Powell, basically backstopped the stock markets after a steep May selloff. At that time, he basically stated that the central bank would act appropriately to sustain the economic expansion. The next FOMC (Federal Open Market Committee) meeting will be on July 31, 2019. At this meeting, the central bank is expected to cut interest rates by at least 25 basis points. Some investors, analysts and economists expect the Federal Reserve could even cut rates by as much as 50 basis points at this next meeting. As you see, the stock markets have continued to climb on anticipation of further easing by the Federal Reserve. Tomorrow morning, ECB President, Mario Draghi, is expected to announce some type of easing in the European Union. You can easily see that this is basically synchronized easing by the central banks around the world. After all, yields are already negative in Europe. What is the problem in the world that has these central bankers so worried right now? On July 8, 2019, Deutsche Bank announced another major restructuring that would layoff 18,000 employees. The bank has a massive derivatives book. This could become a big problem if one or more of the bank's counter parties collapse during a future crisis. Is this the smoking gun leading to more easing by the Federal Reserve and the ECB, or is there something else lurking out there? Gold has been soaring as investors and traders continue to buy precious metals. As long as the central banks keep their dovish outlook precious metals should continue to out perform. At this time, gold has been soaring higher despite a strong U.S. Dollar. Often in the past, when the U.S. Dollar has been strong gold has been weak, but not this time around. It seems that money keeps pouring into the U.S. Dollar from foreign countries. After all, Europe and Japan have negative rates and many investors are now losing faith in the Euro. So what is the play? Gold simply seems to be the logical winner in this environment. As long as central bank keep their dovish tone gold is the one asset class that should continue to benefit. Nicholas Santiago InTheMoneyStocks
Cannabis Stocks Get Smoked And Have Lower To Go $CGC This morning, most of the leading cannabis stocks are trading sharply lower on the session. Popular cannabis stocks such as Canopy Growth Corp (NYSE:CGC), Cronos Group Inc (NASDAQ:CRON), Tilray Inc (NASDAQ:TLRY) and Aurora Cannabis Inc (NYSE:ACB) are all trading down by more than 3.5% today. Unfortunately, all of these stocks continue to look weak on the charts as they are now trading below their important 50 and 200-day moving averages. This puts these stocks in a weak technical position and indicated lower prices ahead before finding a bottom My favorite name in this industry group is Canopy Growth Corp (NYSE:CGC). In 2018, this company has received a multi-billion dollar investment from Constellation Brands (NYSE:STZ). Traders should note that CGC stock has been declining since March 2019 when it traded above $52.00 a share. The stock should have some solid support around the $30.00 area in the near term. It is also important to remember that the company will report earnings on August 14, 2019. Nicholas Santiago InTheMoneyStocks
