Steel Dynamics, Inc. Nearing A Huge Trendline Steel Dynamics, Inc. (NASDAQ:STLD) has been surging higher on the back of better commodity prices and short covering. The stock hit a low of $15.35 in January 2016. Today Steel Dynamics traded to $26.99. If you look at the weekly chart below, there is an up-sloping trend-line that connects through major pivot highs going back to 2010. A trend-line that stretches this far back will have a serious impact on Steel Dynamics ($STLD). Look for the stock to pullback 10-20% from this level. Steel Dynamics is a sell (short) at $27.40. Gareth Soloway InTheMoneyStocks
People Are Clueless About The Price Of Oil, This Is Why The psychology of people involved in the stock market never ceases to amaze me. On February 11, 2016 crude oil traded as low as $26.00 a barrel, but people in the stock market were terrified to buy it at that level. In fact, many of the financial talking heads on television were saying that oil would go down to $10.00 a barrel. These types of remarks caused people in the public to avoid investing in crude despite the commodity trading at new yearly lows and being severely oversold. Now crude is trading above $50.00 a barrel and people are afraid to sell it short despite crude rallying higher by nearly 100 percent since February. Many of the financial talking heads are now saying that oil will go to $75.00 a barrel before peaking out. Isn’t it funny how these so called experts come up with these levels? What are they using to say these statements. The truth is that they are probably hoping it comes back to that level so their investments can work out or recover from the 2016 decline earlier this year. If anyone looks at a chart of crude oil they could clearly see oil has major resistance around the $50 to $55.00 dollar area. Today, crude oil is trading around $51.00 a barrel. There are many factors that affect the price of crude oil. Some of these factors include oil production output, weather, geopolitical events, and the U.S. Dollar. Out of all of these factors the strength and weakness in the U.S. Dollar seems to be most important. Please understand, most of the oil in the world is traded in U.S. Dollars. So if the U.S. Dollar is strong against most other currencies in the world the oil price will likely decline. That was certainly the primary reason for the decline in crude throughout the past two years. There are many ways to trade oil despite using oil futures these days. ETF's and ETN's such as the United States Oil Fund LP (ETF)(NYSEARCA:USO), iPath S&P GSCI Crude Oil Total Return(NYSEARCA:OIL), and the ProShares Ultra DJ-UBS Crude Oil(NYSEARCA:UCO) are just a few different vehicles that can be used to trade oil on the long side. Some short side trading equities for crude include the ProShares UltraShort Bloomberg Crude Oil ETF(NYSEARCA:SCO), and the DB Crude Oil Double Short ETN (NYSEARCA: DTO). Full disclosure: I currently own SCO shares. Nicholas Santiago Inthemoneystocks
Goldman Sachs Group Inc (NYSE:GS) Breakdown Signals Financial Collapse Goldman Sachs Group Inc (NYSE:GS) has broken a head and shoulder neckline. Head and shoulder patterns are bearish and when the neckline is breached, a large drop is at hand. The whole financial sector looks extremely weak and head and shoulder patterns are everywhere. Citigroup (NYSE:C) is another great example but has yet to cross its neckline. The neckline is the trigger for the epic downside move to target. With so many horrid chart setups in the financial stocks, it is likely something big is on the horizon that will cause a quick, sharp decline to target. Goldman Sachs downside target which is calculated precisely, is well below $140.00. Look for sharp declines in the coming weeks on all financial stocks. Gareth Soloway InTheMoneyStocks
Epic Breakdown Trendline Alert On JPMorgan Chase & Co. JPMorgan Chase & Co. (NYSE:JPM) has pulled back over the last week as yields have fallen sharply after the horrible jobs report. Always remember, after Dodd-Frank, banks are not able to make the same money they used to and must rely on loaning money. This means higher interest rates are very important for bank stocks. The lower interest rates go, the lower financial stocks will go. As noted on the chart below, JPMorgan Chase is showing weakness as it has fallen into a key trendline. As long as this trendline holds, the stock is not in freefall, however, should the stock close below this line, a breakdown will occur that will take JPMorgan Chase to $59.30, then $53.00. Watch this line carefully, it is an epic level that every investor should be following. Gareth Soloway InTheMoneyStocks
Trade Home Depot Inc (NYSE:HD) Right Here, Right Now! Home Depot Inc (NYSE:HD) has hit a key support level at $125.00. The stock is near term oversold after falling from near $138 in recent weeks. Look for a technical retrace bounce that takes the stock up to $129.00. This is a very short term swing trade opportunity. Note the chart below and get ready to make fast money...
Screaming Buy Alert: Whole Foods Market, Inc. Whole Foods Market, Inc. (NASDAQ:WFM) had an epic run higher from $28.00 to $35.50 from May 2016 to June 2016. Since the start of June, the stock has pulled back, falling to a current price of $31.25. There is huge support here for a big bounce higher, maybe even another big leg higher. The reasoning? 1. The Whole Foods Market has fallen six days in a row, meaning it is extremely oversold. 2. The stock has slammed into the daily 50 and 200 moving averages. This is huge support. 3. The Whole Foods is into its 61.8% Fibonacci level which is another huge support, technical level. All in all, this stock will likely see a 10% bounce in the coming days. Note the chart below for details. Gareth Soloway InTheMoneyStocks
Blast A Short Trade On $X At This Level United States Steel Corporation (NYSE:X) is trading at $17.69 + 1.35 (+8.26%) on the day. The stock is one of the strongest today ahead of the Federal Reserve statement. The steel sector overall is strong with names like AK Steel Holding Corporation (NYSE:AKS) and Steel Dynamics, Inc.(NASDAQ:STLD) also higher. The key to this chart is to note that at the $19.00 level there is a major downsloping trendline as well as a major gap fill. Technical analysis dictates the price of US Steel will likely trade up into that level before having a serious pull back. In other words, it is wise to not short this play until it achieves the target price of $19.00. A pull back would be in the realm of 10-20%. Gareth Soloway InTheMoneyStocks
