The Big Short: NASDAQ 100 $QQQ Gaps Epic Resistance Retrace The NASDAQ 100 has staged an epic rally, now within just a few percentage points of the all-time highs. Greed is brimming again with average investors buying technology stocks like they were in January. Overbought signals are flashing red and more importantly, a major gap fill has just been tagged. The level on the $QQQ (NASDAQ 100) is $171.00 and the market has kissed it like a shiny new gem. This is the level smart money has been waiting for. If you add in the greed/sentiment it makes for one of the prettiest short trades the market has offered in recent history. Smart money has locked and loaded this level. Look for technology stocks like Facebook (FB) and Amazon.com (AMZN) to take a dump in the coming weeks. Gareth Soloway InTheMoneyStocks
This Airline Is Flying Under The Radar As you all know, energy prices have been on the rise. If we have learned anything from the past, when energy costs increase the airline stocks will usually come under selling pressure. Spot crude is now trading around $71.00 a barrel and expected to climb in the near term. There are numerous problems developing in the Middle East and this is certainly one catalyst for the strong oil prices. Then there is the OPEC production cuts which are also helping to keep energy prices elevated at this time. One airline that has been weak since mid-January is Delta Air Lines Inc (NYSEAL). This airline actually owns an oil refinery and benefits when oil prices are high. Essentially, Delta Air Lines (NYSEAL) has protection against the risk of high crack spreads. A crack spread is a term used in the oil industry for the differential between the price of crude oil and petroleum products it makes like jet fuel. Delta Airlines stock peaked on January 16th, 2018 at $60.79 a barrel. Today, DAL stock is trading at $52.40 a share. Traders should note that DAL stock is now below its important 50-day moving average. This chart formation puts the stock in a weak technical position in the near term. The next major support area for the stock will be around the $49.00 level. This is where the stock was defended in early February 2018. Generally, the institutional crowd will step in and defend the equity when it is retested. Nicholas Santiago InTheMoneyStocks
$GLD getting crushed after bond yields and dollar surge. The next major support level for $GLD will be around $121.20 - Nick
Master Buy Level On Vipshop Holdings Limited $VIPS Revealed Shares of Chinese retailer Vipshop Holdings Limited (VIPS) collapsed 20% on Tuesday after the company reported earnings and issued weak guidance for the coming quarter. From December 2017 to March 2018, Vipshop Holdings had gained over 100% but had seen lots of distribution selling over the last month or two. Big money knew what was coming it appears. As a technical trader, I am expecting further selling from retail investors, driving shares of Vipshop Holdings to $8.45. The stock is currently trading just over $12.00/share. Once at $8.45, the technical chart will have filled the gap from December 2017 and become a strong bounce/buy swing trade. Technically speaking, this is the ideal entry point offering the best reward for the lowest risk. Gareth Soloway InTheMoneyStocks
The Trend In Mohawk Industries Is Down, Where Is The Bottom? Mohawk Industries Inc (NYSE:MHK) is a leading flooring manufacturer that creates products for residential and commercial spaces around the world. The stock peaked out on December 4, 2017 at $286.85 a share. Since that high pivot, the stock has steadily been declining and trending lower. Today, MHK stock is trading lower by 0.47 cents to $208.41 a share. The next important support level for MHK stock will be around the psychological $200.00 level, but that may not hold very long. You see, MHK stock trades less than a million share a day on average. Very often, stocks that do not trade heavy volume or over a million shares a day are susceptible to trading below there near term technical support levels. This is called overshoot and it tells me that the $185.00 area will likely be the next spot for a major bottom in the stock. Nicholas Santiago InTheMoneyStocks
Target Short Level Within Reach On Whiting Petroleum Corp $WLL Shares of Whiting Petroleum Corp (WLL) are up over 150% since February 2018. This is due to a short squeeze based on crude oil spiking higher for most of 2018. With the bulls in full charge and the greed indicators flashing red, smart money is starting to scope out a short level. Based on the stock chart, a short can be taken at $53.00. This is a beautiful double top which provides the technical short signal to match the overbought greed indicators. Once hit, look for Whiting Petroleum to fall sharply back to $41.35. Gareth Soloway InTheMoneyStocks
Emerging Markets Are Falling And They Can't Get Up The popular iShares MSCI Emerging Markets ETF (NYSEArca:EEM) topped out on January 26, 2018 along with the major stock market indexes. The January peak for the EEM was $52.08 and since that high in the share price it has tumbled. Currently, the EEM is trading down by 0.54 cents to $46.64 a share. At this time, the EEM is holding and trading just above its important 50-week moving average. Should price close below this major moving average the next critical support area will be around the $42.75 level. This support area would be a major retrace level and spot where the equity broke out in August 2017. Often, major breakout levels will serve as major support when retested. Keep the $42.75 level on the radar for the EEM. Nicholas Santiago InTheMoneyStocks
This Pattern Signals $17.50 Target On General Electric $GE Shares of General Electric (GE) are one of the best performing S&P stocks in the last two months. Up 22% in since April 2018 has investors cheering after the company beat earnings and put to rest any worry that they would cut the dividend. There may in fact be reason to cheer for more upside. The stock just broke the neckline of an inverse head and shoulder pattern. This is an extreme bullish signal for General Electric and has a calculated price target of $17.50 attached. While it may pause around this $15.00 level for a week or so, upside should resume quickly as the target could be achieved in June. Gareth Soloway InTheMoneyStocks
Bitcoin Consolidation Signals This Major Move Coming Bitcoin is in a major consolidation phase marked by the converging channel in the chart below. While there are plenty of bulls calling for 25,000 on Bitcoin by the end of the year, the honest answer is true chart technicians do not know if Bitcoin will breakout or breakdown just yet. Ultimately, crypto-currency investors need to wait for either a break above the consolidation trend line highs or lows. If it breaks out, it is likely headed to a double top at $20,000 within months. If it breaks down however, $4,000 is the target. As of now, a breakout would occur if price trades above $9,500, while a break down would occur if price trades below $7,000. Crypto traders should be simply watching this consolidation pattern and waiting patiently for the next big move. Gareth Soloway InTheMoneyStocks
Fifth Third Bancorp $FITB Drops After Acquisition, Watch This Trade Level Fifth Third Bancorp (NASDAQ:FITB) is a leading bank holding company throughout the Midwestern and Southeastern regions of the United States. Earlier today the firm announced that they would buy MB Financial Inc (NASDAQ:MBFI) for $4.7 billion in stock and cash. The news is causing MBFI stock to surge by more than 13.0 percent to $49.44 a share. Unfortunately, FITB stock is declining by more than 7.00 percent to $30.92 a share, this is type of weakness is very common for the company that is doing the buying. Traders and investors must now look at the charts for the next major support level on FITB. One level for the stock that stands out to me is around the $28.00 area. This is where the stock broke out in November 2017. Often, prior breakout level are excellent support when retested. I will be looking to buy FITB stock around this important trade level. Nicholas Santiago InTheMoneyStocks
Transports Trying To Breakout, See The Upside Target Shares of the Transportation ETF (IYT) are breaking a quad top today. This means a possible breakout, should confirmation occur tomorrow. If this happens, the upside on the transports is $207 from its current $196. That is some major juice to the ETF plus a good omen for the stock market. Let's see if confirmation triggers tomorrow... Gareth Soloway InTheMoneyStocks
Dycom Industries Inc $DY is Crushed After Earnings, Watch This Level Dycom Industries Inc (NYSEY) is a leading provider of engineering, construction, and installation services to telecommunication providers. Earlier today, the company reported earnings that are not being well received by the street. The stock is trading lower by over 17.0 percent to $95.46 a share. Traders and investors should note that the stock is now trading sharply below its important 200-day moving average, this is a very bearish indication. The next important support area for the stock will be around the $90.00 level. This is where the stocks has a major gap window from November 17, 2017. Often, major past gap windows should serve as solid support when initially filled in the chart. Nicholas Santiago InTheMoneyStocks
