Goldman Sachs $GS headed to $212.00. Nasty chart, too many funds got caught with their pants down (long).
See Why Catalyst Biosciences (CBIO) Is A Traders Dream Strong Buy Shares of Catalyst Biosciences Inc (NASDAQ:CBIO) surged from $5.00 to near $19.00 in one trading day. This happened after the company announced exciting new drug developments, especially for a company with a current market cap of $8 million. This micro sized biotech allows for these crazy runs and pull backs. The key for a trader is timing the buying levels with technical chart levels. This brings me to why at current price points, I strongly favor Catalyst Biosciences... The stock has fallen from $19 over the last five trading days to $8. This $8 level happens to coincide with the gap window (the price the stock gapped higher by on the drug news). In technical analysis, this is a firm support level. In addition, right below lies the daily 20 and 50 moving averages, also big support levels. In addition, within days the stock will hit a master time count, a key factor known in proprietary price, pattern and time analysis sectors to cause a huge move. There are tons of average investors waiting to chase when the next pop happens. It likely is within a day or two and right around this price point. I am a buyer, looking for a pop to $10.50, maybe higher. Remember, micro cap stocks like this carry a ton of risk so if you decide to buy, go super light on shares. Gareth Soloway InTheMoneyStocks
Bond Yields On The Verge Of A Break-Out Many of the talking heads in financial media continue to say that yields on the 10-year U.S. Treasury Note ($TNX) cannot and will not trade above the 2.60 percent level. It should be noted that the 2.60 percent level has been resistance since December 2016. The support level on the yield chart since that time has been 2.30 percent. Currently, the 10-year U.S. Treasury Note yield is hovering around 2.37 percent level. Many traders and investors are thinking that yields are going to fall further, but all that's happening on the chart is long term consolidation. The high range of the chart consolidation range is 2.60 percent and the low end of the range is 2.30 percent.. If traders look at a monthly yield chart they will see a nice tight consolidation pattern. Should this pattern on the monthly chart play out as expected it signals a move in the 10-year U.S. Treasury Note yield to around 2.82% and possibly higher. The same pattern is also forming on the 30-year U.S. Treasury Note yield ($TYX). This monthly chart pattern signals a move to the 3.43 percent level and possibly more. The bottom line is that yields are poised to move higher very soon. There are a few ways to play bond yields as a stock trader. One way to trade the 10-year U.S. Treasury Note yield is to play the ProShares UltraShort 7-10 Year Treasury (NYSEARCAST). This ETF will track the yield chart on the 10-Year Treasury. If traders are looking to trade the 30-year U.S. Treasury Note yield they can play the ProShares UltraShort 20+ Year Treasury (NYSEARCA:TBT). Nicholas Santiago InTheMoneyStocks
This Is Why I Am Short Oil Today I am short oil. I did this simply because the chart dictated that message via multiple indicators, as follow... First, prior to the recent collapse just weeks ago, crude oil was trading in a range of $55 as a high, down to $52 lows. After oil collapsed to $46, we have seen a technical bounce that touched the $52 today. This is major resistance because it is the former low end of the range. The next factor is found on the USO, the ETF that tracks oil. Today it tagged the daily 200 moving average after a massive bounce run. In addition, the daily 50 moving average sits just pennies above. This signals a pull back, thus another signal to short. Lastly, oil inventories continue to build. The U.S. is producing more and more oil, killing any price pressure from OPEC's production cuts. Oil above $50 will only increase U.S production. I expect another leg lower on oil in the coming weeks to $40.00. I am short and enjoying the small risk to big reward. Gareth Soloway InTheMoneyStocks
Are General Motors & Ford Driving In Reverse? Many of the leading automotive stocks have been declining lately on the back of very poor auto sales data. Car manufacturers, auto dealers, and auto part maker stocks have seen strong selling pressure since February. Last week, the credit rating agency Moody's also warned that weak U.S. auto sales could pose significant credit risk to the auto lenders. All of this news is weighing on the entire auto sector at this time. Two of the leading U.S. car manufacturers that have declined sharply are General Motors Company (NYSE:GM), and Ford Motor Company (NYSE:F). It should be noted that General Motors (NYSE:GM) and Ford Motor Co (NYSE:F) stocks are now trading below its important 50-day moving average. This now puts these two leading auto stocks in a weak technical chart position. The good news for these stocks is that there are some solid institutional support levels just a bit lower than the current stock price. Traders should now watch the $32.00 level as major support for General Motors. This should be a solid bounce area for this stock. Ford Motor Co will have institutional support around the $10.35 level. Nicholas Santiago InTheMoneyStocks
Boeing Co (BA): Next Leg Takes It Down To This Price, I Am Short Shares of Boeing Co (NYSE:BA) have a fantastic bear flag on the daily chart. This alerts investors to massive distribution (institutional selling) into dumb funds/average investor buying. That is why the angle of the bounce over the last week is so flat. Essentially, all the buying is being met with smart, big money selling. Whatever explanation you wish, the point is Boeing Co is going lower and fast. While there will be some bounces along the way, the ultimate downside target is $160.00. This means there is still over $17 in downside to come. I am short and loving the bearish chart pattern setup. I will cover at $160.00. Note the chart below... Gareth Soloway InTheMoneyStocks
Know The Buy Level For This Leading Auto Parts Maker Tenneco Inc (NYSE:TEN) is a leading auto parts manufacturer that has been pulling back over the past couple of months. The stock price peaked out on February 7th at $70.96 a share. Currently, Tenneco Inc (NYSE:TEN) stock is trading around $58.68 a share. While many traders and investors will see this stock as a bargain the stock could still be susceptible to further downside in the near term. Traders should watch the $55.00 area as excellent chart support. This is where the 50-week moving average is currently at on the chart. It is also where the stock based sideways before breaking out to the upside in November 2016. This chart formation tells us that the $55.00 area is the institutional buy level for Tenneco stock. Nicholas Santiago InTheMoneyStocks
Big Trouble Coming For JPMorgan Chase & Co. (JPM) The stock chart on JPMorgan Chase & Co. (NYSE:JPM) is hanging on by a thread to support. Investors should be very wary about being long the bank stock as big money continues to exit quietly. Based on countless technical signals, JPMorgan Chase appears to be getting ready to break lower. What is so interesting about this is that JPMorgan is set to report earnings later this week. This may strongly indicate they will miss earnings and/or talk about the less likely chance of Dodd-Frank being undone. Either way, when the trend line shown on the chart below breaks, the stock has major downside to $77.00. Based on calculations, it is just a matter of days until the stock breaks lower. Be ready! Gareth Soloway InTheMoneyStocks
Three Rules Every Stock Trader Should Follow One of the number one reasons that traders lose money is because they cannot follow the most important rules. In fact, some novice traders do not even have any rules in place when trading. They are simply relying on luck or tips to make money in stocks. Here are three rules that every stock trader should adopt if they want to have a chance in this market. 1. The 10 Percent Rule. The ten percent rule was made famous by the legendary trader Jesse Livermore. He said that he would never take more than a 10 percent loss on any stock. Whenever he broke this rule and let his emotions get the best of him he really suffered a bigger than expected loss both financially and mentally. A ten percent loss keeps you in the game and allows you to fight another day. I cannot begin to tell you how many times I have seen one trade turn into a huge loss. This giant loss often hurts the trader involved and has even been the cause of many blown up accounts. 2. Do Not Trade With Capital You Cannot Afford To Lose. There is an old saying, scared money never makes any money. Whenever traders and investors trade with capital they cannot afford to lose it hinders their thinking. Trading comes with enough pressure already, but betting the rent or the mortgage on a stock simply affects the traders ability to read or follow that stock's price movement correctly. A good rule is to also apply the 10 percent rule to position size. Never put more than 10 percent of your account into any one stock position. This will allow you to find other trading opportunities should they arrive. All of your capital will not be tied up in one stock. By keeping the position size to just 10 percent of your account you will not have too much of an emotional connection to any one trade. Keeping the stress of trading down is extremely important for your health. 3. Learn To Use And Read Charts. While most of the people in the world will use fundamental analysis to trade (PE ratios, EPS, book value, ect) it is the charts and technical analysis that will show you the actual money flow of a stock. The bottom line, the trend is your friend except at the end. Reading charts of stocks will show you patterns and signal where the money is going and flowing. Remember, it is money flow that moves stock prices not opinion from some talking head on the financial news channel. How many times have you seen a company report great earnings only to see the stock plummet and vice versa? Often, the chart will tell us this will happen before it does. Chart reading will also help traders to place stop losses and know where pattern breaks down or fails. Traders must understand that it is just as important to know where you are wrong on a trade as it is to know when you are correct. Charts do all of these things and more when a trader can read them. Every trader and investor should get educated in reading and understanding charts. Nicholas Santiago InTheMoneyStocks
