Major Support Tagged: Kroger (KR) Strong Buy While Average Investors Panic! Shares of Kroger Co (NYSE:KR) took a beating for the second day in a row. After warning on earnings yesterday, Amazon (AMZN) bought Whole Foods (WFM) today. All grocery plays fell off a cliff on fear that margins would be pressured. The panic was palpable and that is exactly what investors want to see to find great buys! Kroger Co hit major support at $21.50 and became a strong buy. If logic takes control, investors will realize that even though Amazon is buying Whole Foods, they will not kill margins overnight. They need to integrate, change... etc. It will take years. They may not even be able to do much in the long-run to disrupt the grocery industry. In addition, it will likely force Kroger and other grocery players to adapt and become stronger. Valuation wise, this is a home run for a move back to $25.00 in the near-term. Logic confirms it as does the chart. See below... Gareth Soloway InTheMoneyStocks
Costco Plunges Lower, Know This Trade Level Today, leading wholesale warehouse retailer Costco Wholesale Corp (NASDAQ:COST) is declining by $4.06 to $163.03 a share. The retail giant's stock price has been coming under pressure since early May when the shares traded as high as $183.18. Currently, COST stock is sitting right on its 200-day moving average so there is some near term daily chart support. Unfortunately, the better and stronger institutional support level for COST stock price will be around the $157.00 area. This is a spot on the chart that has a gap window from December 8th, 2016. Often, this level will be defended when retested. This level presents a very solid risk/reward long (buy) side opportunity in the stock. Nicholas Santiago InTheMoneyStocks
Major Top Alert: Tesla Inc (TSLA) Weaker Than Market Here Is The Trade... Shares of Tesla Inc (NASDAQ:TSLA) have topped. I expect the stock to have a large corrective move to $325, possible as low as $285. Last Wednesday, euphoria hit an all-time high as the stock jumped sharply to new all time highs. The chart on Tesla Inc put in a doji topping signal and has since been under performing the stock market. Volume was huge on that doji day, signaling major distribution by institutions and smart money. In the days that have followed, volume has remained high. As the big money exits, the small investors who bought into the hype are left holding the bag. Investors buying north of $370 are insane. If they stepped back and did not let the emotion get the best of them, they would notice the stock has moved higher from $180 to $385. That is a monster 113% move since last November. That is not normal unless Elon Must cured cancer...and he did not. I love Elon Musk as much as the next guy but I am also a realist, and all signs point to a major top and correction in shares of Tesla Inc. Gareth Soloway InTheMoneyStocks
Know This Institutional Trade Level For This Leading Food Product Company Last week, most of the leading food processing stocks sold off after Amazon.com (NASDAQ:AMZN) announced that they were acquiring Whole Foods Market Inc (NASDAQ:WFM) for $13.7 billion. Many of these leading food processing stocks are still coming under pressure since that news was released. At some point some of these leading food processing stocks will look attractive. General Mills, Inc. (NYSE:GIS) is a leading is a manufacturer and marketer of branded consumer foods. This stock peaked out in July 2016 at $72.95 a share. Since that high pivot the stock has plunged lower and is currently trading at $56.85 a share. Many traders are now wondering if the stock is on sale, but the chart pattern indicates that the shares are headed lower. At this time, the stock has major support around the $52.50 area. This is a level where GIS stock based for roughly two years before breaking out. Very often, prior base patterns will serve as major support when retested. It should also be noted that General Mills, Inc. (NYSE:GIS) will report earnings on June 28th, 2017 before the opening bell. Nicholas Santiago InTheMoneyStocks
Nasty Reversal On McDonald's Corp (MCD) Seals Bearish Fate. Note This Chart... McDonald's Corporation (NYSE:MCD) just put in a major top. Not only is trading above a 27 P/E, historically insane, but McDonald's Corp opened higher today and sold hard on volume. The jump this morning came after Cowen upgraded the fast food company and placed a $180 price target. Let's think about this for a second. In October 2016, McDonald's Corp traded at $110.00. Today it hit a high of $155.28. That is a whopping percentage gain of 41% in 8 months. Think about that, after a 41% gain, now an analyst upgrades it? That is some sort of wacky joke. This is how tops are created. The reversal signals institutions are selling into the upgrade volume. I have a downside target on McDonald's Corporation at $134.25. This would be about a 50% retrace of the 8 month up move. Hold on and enjoy the ride. I am loving the short trade. Gareth Soloway InTheMoneyStocks
Chipotle Mexican Grill Gets Roasted, Where's The Trade? Yesterday, leading fast food restaurant stock Chipotle Mexican Grill, Inc. (NYSE:CMG) sold off after announcing Q2 guidance. Despite the stock price falling sharply lower on yesterday's news the stock actually peaked out on May 16, 2017 at $499.00 a share. Today, CMG stock trades at $416.00 a share. Many traders are now wondering if the stock is cheap, but unfortunately it should trade lower according to the charts. Traders and investors should note that the stock was defended in March 2017 at around the $394.00 level. This should be the next major support area for CMG stock when it is retested. At this stage of the game the stock should have the selling momentum to test that key support level. Nicholas Santiago InTheMoneyStocks
General Electric (GE): Big Buying Opportunity Right Here... Just last week, shares of General Electric Company (NYSE:GE) surged almost 10% after it was announced that the CEO would be stepping down. General Electric is one of those old school companies that is having a hard time getting investors to believe they are on the cutting edge of the future. Thus, they have not traded at a price-to-earnings ratio of many other technology companies, even after selling off GE Financial and getting rid of the boring parts of the company. Investors view the current CEO as part of the problem. He is old school when the stock market demands new school. When it was announced, Wall Street cheered and General Electric shares jumped. However, since that day, the stock has faltered and faded, coming back to the gap fill from the sharp pop day. This is known as major support. Believe it or not, the stock has even moved slightly lower, now into a major level I believe is a strong buy. The level is $27.75 and is a major trend line as seen in the chart below. This is a gift. Investors can buy the stock below levels prior to the announcement. I am looking to swing trade the stock with an upside target of $30.50.
Know This Major Trade Level For This Retail Stock As you know, the leading retail stocks have all been coming under severe selling pressure lately. It is well known that Amazon.com (NASDA:AMZN) has been eating the lunch of many leading retail companies. Are these beaten down retail companies ready to adjust to the Amazon way of doing business? One leading retail stock that has fallen sharply lower is TJX Companies Inc (NYSE:TJX). This company is an off-price apparel and home fashions retailer in the United States and across the world. TJX stock recently topped out on May 10th, 2017 at $80.92 a share. Since that high pivot the stock has plunged lower and is now trading around $68.72 a share. Traders should note that this stock is now trading into a major support level around the $67.75 area. This level is a major retrace area and it coincides with a weekly chart 200 moving average. Often, this dual support area will signal a major bounce is near in the stock price. Institutional buyers will usually defend the equity around this level. Nicholas Santiago InTheMoneyStocks
Fear In Certain Sectors Can Be Great Trade Opportunities There are so many traders and investors in the financial news media that will look at a declining stock sector and become so fearful. Why do they not see the opportunity in these beaten down industry groups? The reason is because they do not understand the charts. They are getting all caught up in the emotion of hearing that the sky is falling. Hence, they simply follow the crowd and all run for the exit door (sell) at the same time. This type of thinking has always gone on since the beginning of time. Last week, the retail stocks were selling off in a very sharp manner. Popular retail stocks like Bed Bath & Beyond Inc.(NASDAQ:BBBY), Home Depot Inc(NYSE:HD), and Costco Wholesale Corporation (NASDAQ:COST) were plunging lower on the charts. Many traders and investors were selling these stocks with both hands as the volume was fairly heavy in these equities. Believe it or not, when a stock declines in this fashion this is where the opportunity lies. On June 24th, 2017 I was able to isolate a major chart support level for Costco Wholesale Corporation(NASDAQ:COST) just below $157.00 a share. Today, COST stock is trading higher by $2.52 to $159.62 a share. I was able to buy call options in the stock and sell half of them today for a 28.0 percent gain. Traders and investors need to learn how to read the charts in order to find these trading opportunities when they present themselves. It is important to remember that there will be bear markets in many sectors and industry groups within an overall bull market. This is the markets way of presenting us with trading opportunities if you can understand the charts. Nicholas Santiago InTheMoneyStocks
