Even If This Is A Bear Market, There Will Still Be Rallies Almost every talking head on the financial news is calling this recent correction a bear market. Technically speaking a bear market is when an index has fallen 20.0 percent from its peak. So yes, there are industry groups and sectors that are in bear markets right now. In fact, the Russell 2000 Index (IWM) has declined 20.0 percent and is technically in a bear market. The S&P 500 Index (SPY), NASDAQ, and Dow Jones Industrial Average (DIA) are not in a technical bear market yet despite the declines we have seen recently. One thing traders should remember, bear markets will still have rallies and bounces. The same way bull markets have pullbacks and sell offs. Does anyone remember 2010? At that time, there was the flash crash on May 6, 2010 and a market that chopped lower into the end of August. In 2011, the major stock indexes plunged from May to October before rallying to new highs. There were two strong pullbacks in 2012 before another rally higher. Traders may recall the weak 2015 that we had and the tweezer double bottom in January and February 2016. Even during the 2008 bear market there were some monster rallies throughout the year. The point here is that this is now a traders market. Stocks are no longer climbing the wall of worry. Almost every news headline that is negative is being viewed as negative. Even positive news is now being viewed as negative and this is a change in character from what many are conditioned to over the past nine years. Either way, it is traders market. This is an environment where you must cut down the share size and take your shots at the long side when the technical levels are talking to you. This means that you must have the major stock indexes trading into a major support level and at the same time make sure the stock or equity you want to own must also be trading into a major support level too. Simply put, the bull market will no longer bail you out if you are wrong like it did in 2017. That year was basically straight up without any meaningful pullbacks. Those days are over for now. Everything is technical, traders and investors must now adapt to the new environment. Just remember, regardless of a bull or bear market nothing goes up or down in a straight line. There are always bounces and pullbacks, that is what makes a market, so just trade the technicals until another trend is established. Nick Santiago InTheMoneyStocks
The Emerging Markets ETF $EEM Sell Off Is Not Over Yet Lately, many talking heads in the financial news have been calling a bottom in the emerging markets. Please note, the iShares MSCI Emerging Markets ETF (NYSEARCA:EEM) topped out on January 26, 2018 at $52.08 a share. At that time, all of the major stock indexes also topped out and staged a minor correction before moving higher into September. The EEM never recovered and simply continued to decline into October 29, 2018. This low was when the Shanghai (China) market found a near term bottom. So we can easily see how tightly related the Chinese market is to the EEM. Currently, the EEM is trading at $38.98 a share which is still above the October low pivot. A weekly chart close below the October 29th low will signal another leg down for the EEM. The next major support level for this highly popular ETF will be around the $34.50 area. So it is critical for this to hold up at this time. Either way, this is now a traders market, so be patient and wait for these important technical levels to come into play. Nick Santiago InTheMoneyStocks
Trading An Oversold Market Almost everyone in the trading business is talking about an oversold market at this stage of the game. Stocks are now entering correction territory and there could still be more selling down the road. Generally, some of the best rallies come during a bear market and this makes many traders such as myself willing to take a shot at the long side when stocks are so low. Unfortunately, the stock bounces that we have seen lately have been met with heavy selling pressure. Often, traders will try to find many important timing factors for trades and hopefully we are entering one right now. Either way, traders and investors must still be very careful when it comes to markets like this. One old market saying that I have learned over the years is, it’s not how they open them it’s all about how they close them. This means that the intra-day action is really pointless if you do not see a strong finish into the closing bell. Since the December 3rd pivot high we have only had two sessions that have finished stronger by the closing bell than where price has opened. In other words, there have been just two green candles on the daily chart if you view a daily candle stick chart. Today, stocks are rallying higher intra-day, but it will be the closing prices that will tell the tale. In the past, when stocks have behaved this way there has always been a few hedge fund blowups out there. So far, we have not heard of that happening yet, but these things can take some time to come to light. Either way, keep an eye on the charts and let the market tell you what to do. Nick Santiago InTheMoneyStocks
Akamai Dips After Downgrade, Watch This Trade Level Akamai Technologies Inc (NASDAQ:AKAM) is a leader in providing services that improve the delivery of content and applications over the internet. Today, the stock is declining by 4.0 percent to $56.64 a share. The fall comes after a downgrade was issued in the stock. Traders and investors should note that the market is still in a very volatile environment causing stocks to really overreact to any news. Either way, AKAM stock should have excellent daily chart support around the $50.00 area should it decline further. This level is where the stock was defended in October 2017 after forming a bearish pattern. I would likely be a buyer of the stock around this important support area when tested. Please note, AKAM is scheduled to report earnings on February 5th after the closing bell. Nick Santiago InTheMoneyStocks
S&P Target Revealed The S&P 500 reversed early losses and are now marching higher, continuing the bounce from last week. Pro traders at InTheMoneyStocks expected this bounce and are long. Their upside target on the $SPY (S&P ETF) is $262.00. Once there, they will take profits on their longs and start shorting. 2018 was their best year ever, with a 94% success rate on day trades and 85% success rate on swing trades. 2019 promises to be even more profitable. Average members made over 55% in their accounts for the year, with many doing over 100% returns. Take the free trial today and profit with the best in the world. Gareth Soloway InTheMoneyStocks
Delta Air Lines $DAL Hits Turbulence After Lower Quarterly Outlook, Watch This Trade Level This morning, Delta Air Lines Inc (NYSEAL) warned fourth-quarter revenue would be slightly below its prior forecast. The stock is trading lower by more than 8.0 percent to $45.80 a share. The stock is now trading below its important 200-week moving average. This pattern usually indicates further weakness ahead. Traders and investors should now watch the $43.50 area as the next major support level. This area is where the stock was defended in April 2017 and will likely be defended again when retested. Please remember, Delta is scheduled to report earnings on January 10th 2019 before the opening bell. Nick Santiago InTheMoneyStocks
