Gold Hits Significant Dual Resistance Point, Pull Back Highly Likely Gold has surged in the past two weeks as the Dollar has faded. It also appears investors are buying some protection after Bitcoin faltered at $20,000 before its recent decline back to $14,000. Bitcoin was a store of safety until two weeks ago when it began to crash. Now money is headed back to trusty gold. While I am a long-term bull, there is a significant swing trade short opportunity in shares of the gold ETF $GLD. Today, the $GLD hit gap fill and also a down-sloping trend line, connecting the highs from mid-October to late November. The fact that gold is near-term overbought and now has hit two major resistance points, signals a likely pull back. Swing traders can look to short gold by buying the $DGLD (3x gold bear ETF) or just shorting the $GLD. The $GLD should retrace back from its current price of $122.85 to $121.00 in the coming week. Gareth Soloway InTheMoneyStocks
Bear Flag + Neck-Tie Salesforce.com, inc. (NYSE:CRM) Alert There is a classic multi-factor trade setup on salesforce.com, inc. (NYSE:CRM). Current price has fallen below the 50 and 20 daily moving averages. Price has consolidated below those two moving averages in a near-perfect bear flag formation. There is a neck-tie of the two moving averages right above price creating a strong trigger to further downside. This setup has a high reward, low risk with a tight stop on it. As long as price does not close above the two moving averages at $103.35, short. With current price at $102.70, this is a tiny risk of $0.60. On the reward side, if price declines, it could fall at least to $98.00 as a first target, then potentially as low as the daily 200 moving average at $93.00. The risk/reward here is optimal. Gareth Soloway InTheMoneyStocks
Oil Nears Major 2015 Pivot, How To Trade It Crude oil continues to climb higher as global economic optimism increases and instability in the Middle East continues. Anti-government protests in Iran have helped push oil above $60 per barrel. Considering economic optimism is likely at/near a high and U.S. production is increasing with the price of oil, the pivot high from 2015 at $62.00 is likely a good short opportunity. I expect a pull back off $62.00 back to the $55.00 level of support. Gareth Soloway InTheMoneyStocks
Defense Stocks Fail To Rally, Watch This Level This morning, the leading defense companies are not participating in today's early rally. Stocks such as Lockheed Martin Corporation (NYSE:LMT), Northrop Grumman Corporation (NYSE:NOC), Raytheon Company (NYSE:RTN) and General Dynamics Corp (NYSE:GD) are all falling by more than 1.0 percent today. LMT is a now falling into support for a possible day trade at 317.50. The stock has a rising 200 moving average on the hourly chart at $317.26. This area should also be more support for the stock when initially tested. Nicholas Santiago InTheMoneyStocks
Epic Bear Flag On Toll Brothers (TOL) Signals Major Downside Shares of Toll Brothers Inc (NYSE:TOL) are in trouble. The technical chart has one of the most powerful bear flag formations I have seen in the last year and it is likely near a major breakdown. The next wave of selling will be more powerful than the first, likely sinking Toll Brothers Inc as low as $40 before investors can start nibbling. The fundamental reason should be discussed as well. With the new tax plan in effect, home prices in many higher net worth states like California, New York and New Jersey will be dropping an estimated 10% or more. In addition, buyers in these higher end home states may think twice about buying, maybe even deciding to move to lower state income states. It is naive if investors think that a higher end home builder will not see an effect from this new tax plan killing off the SALT deduction. Gareth Soloway InTheMoneyStocks
The Bullish Case For Chipotle Mexican Grill, Inc. The performance in 2017 on Chipotle Mexican Grill, Inc. (NYSE:CMG) was nasty. However, that might benefit the stock in early 2018. The reason I saw that is that sellers were dumping shares in late 2017 to offset capital gains and reduce taxes. Essentially, if an investor was going to sell, they would have done it in 2017 to save money. That limits the amount of sellers in early 2018 (as long as there is no new bad news). The valuation of Chipotle Mexican Grill, Inc. is now actually semi-attractive, especially with the P/E expansion that has taken place on the S&P 500. Lastly, Chipotle Mexican Grill, Inc. did not make a new 52 week low in the last month even with those tax loss sellers. Instead, the stock filled a major support gap fill and is holding it nicely. These factors have me positioning for a bounce in early 2018. Gareth Soloway InTheMoneyStocks
Biotech Stock TESARO (TSRO) Falls Sharply But Major Level Emerges Shares of TESARO Inc (NASDAQ:TSRO) fell nearly 10% on the first trading day of 2018 after some bearish chatter. The stock has fallen from nearly $200 in early 2017 to its current price point of $75.00. However, I am putting this on my Buyers Watch List because of a major support level between $66.00 and $65.00. At this current rate of decline, TESARO Inc could hit this target by level within a week. I want to be ready to buy. The buy level comes from dual major pivot highs from 2015. There will likely be a major bounce from this level, possible 30-50%. A target of $100 is not outlandish. Gareth Soloway InTheMoneyStocks
Airline Stocks Come In For Landing, Watch This Day Trade Level This morning, most of the leading airline stocks are selling off to start the session. Traders should now watch American Airlines Group Inc (NASDAQ:AAL) for support around the $51.90 level. This area should be solid support for an intra-day bounce. Other airline stocks in play today include Delta Air Lines, Inc. (NYSEAL), United Continental Holdings Inc (NYSE:UAL), Southwest Airlines Co (NYSELUV) and JetBlue Airways Corporation (NASDAQ:JBLU). Nicholas Santiago InTheMoneyStocks
Is Dean Foods Co (NYSEF) Finally Flashing A Buy Signal? Leading food and beverage company, Dean Foods Co (NYSEF), has been one of the worst performing stocks of 2017. This stock peaked out in January 2017 at $22.31 a share. Today, DF stock is trading around $11.57, this shows you how beaten up the stock got last year. Traders and investors should now note that the stock finally looks attractive on the charts. The current pattern is forming a bullish consolidation set-up. This chart structure is signaling upside to around the $13.00 level. Full Disclosure: Nick Santiago owns call options in Dean Foods Co. Nicholas Santiago InTheMoneyStocks
On Watch J C Penney (NYSE:JCP) Hammers On Major Breakout Level Shares of J C Penney Company Inc (NYSE:JCP) are once again hammering on the major resistance level of $3.75. This is now the 3rd time the stock has pushed up into this key level and all eyes are on it. If J C Penney Company Inc breaks through, upside will quickly see a target of $4.70. Odds do favor a breakout based on the multiple times the stock has tested the $3.75 level. The more a stock tests a level, the weaker that level becomes. In this case, the resistance level is weak and with analysts predicting a 20% jump in earnings from retailers because of tax reform, a breakout is likely. To confirm the breakout, look for any technical daily close above $3.75. Gareth Soloway InTheMoneyStocks
This Is Where Intel Corp (INTC) Becomes A Swing Trade Buy Shares of Intel Corp (INTC) are being slammed today after reports emerged that the chip-maker has a serious security flaw in their chips. This potentially stretches back 10 years. With the stock down 6% on the day, investors are curious at what price, Intel can be bought. Based on the chart, a major gap fill is likely the downside target for a buy/bounce at $41.35. This is the level that offers the best support with the lowest risk versus reward. This is just a swing trade, so don't get married long term to Intel Corp. Gareth Soloway InTheMoneyStocks
Did Alphabet Inc (GOOGL) Just Top? Watch This To See Shares of Alphabet Inc (NASDAQ:GOOGL) surged to all-time highs in early trading today. However, by lunch-time, the search giant had faded, up less than a half-percent. The pull back created a bearish topping tail on the daily chart and may signal a near-term top for the stock. Investors need to put this on their watch list and follow it into the market close. Should Alphabet Inc close with a topping tail, it becomes a strong short and will likely pullback sharply. These technical chart signals are important, as they are the only thing that can give investors an edge on when a stock like Alphabet Inc is set to pull back. Gareth Soloway InTheMoneyStocks
Oil ETF $USO Hits Major Double Top, Finally Becomes A Pull Back Trade Shares of the United States Oil Fund LP (NYSEARCA:USO) finally hit a double top at $12.42, correlating perfectly with the $62.20 major pivot high on crude oil from 2015. The odds now favor a pull back in crude oil for the next week or two. Look for a retrace back to maybe as low as $55.00. If that happens, the $USO could see $10.50 or lower. Playing this with the 2x short ETF $SCO. Gareth Soloway InTheMoneyStocks
Diana Shipping Inc. (NYSESX) Breaks Out As Global Growth Surges Talk to any economist or analyst. They all say global growth is surging. If that is true, the best investments (that have not already run over 100%) may be the shipping stocks. These left-for-dead names may be starting to breakout. Take a look at Diana Shipping Inc. (NYSESX). This shipping stock has just broken out on the daily chart. If the breakout continues, the first target is $5.10, second target is $6.20. Other shipping stocks should be on your radar as well. Remember, as global growth jumps, shipping rates will jump as well. Earnings could swell in a major way in the coming year for these companies. Gareth Soloway InTheMoneyStocks
