InTheMoneyStocks Market Analysis

[InTheMoneyStocks]

$CSX Corp (CSX) Falls On Earnings, Here Is The Downside Target Price...

Shares of CSX Corporation (NASDAQ:CSX) fell after the transport stock reported earnings that beat Wall Street expectations. Does it sound weird, it is falling on an earnings beat? Upon a closer look, some accounting maneuvers allowed for that beat. If you back out those shady dealings, CSX Corporation actually missed earnings. This explains why it is falling. Being a technical chart trader, I have been bearish on CSX Corporation. I just cannot make sense of a railroad stock trading at a 30 P/E ratio. Are we living in the late 1800's? On a technical chart basis, CSX Corporation had a significant breakdown today. The stock gapped below the daily 20, 50 moving averages as well as a major trend line (seen in the chart below). This signals further downside is very likely. I have a $47 target penciled in, and should be achieved within the next month or so. Once at $47, CSX Corporation should see a solid bounce higher.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Will Retailers Ever Fight Back Against Amazon?

It is safe to say that Amazon.com (NASDAQ:AMZN) is doing to retail what Apple Inc (NASDAQ:AAPL) did to BlackBerry Ltd (NASDAQ:BBRY). Amazon.com is basically decimating the retail stocks. The brick and mortar business model is now prehistoric and Amazon.com has been the biggest beneficiary. When will the major retail companies start to defend themselves against Amazon.com who is basically putting them out of business?

Wal-Mart Stores Inc (NYSE:WMT) and Costco Wholesale Corporation (NASDAQ:COST) have been holding up the best against Amazon.com, but they have been facing pressure if you look at their stock price recently. Yesterday, companies such as Home Depot Inc(NYSE:HD), Lowe's Companies, Inc.(NYSE:LOW), and Whirlpool Corporation(NYSE:WHR) were hurt as Amazon.com announced it will sell Kenmore appliances.

When are the retail companies going to turn themselves into an Amazon.com? Wal-Mart and Costco are best positioned to fight back against Amazon, but they have not really been effective lately. So who is going to be Amazon's biggest competitor in the next 10 years?

One company that nobody is talking about is Alibaba Group Holding Ltd(NYSE:BABA). This company is basically the Amazon of Asia and the stock price has been soaring in 2017. Traders and investors should note that BABA stock price is very extended at this time, but this company is positioned to invade the North American and European markets in the future. This company is poised to be Amazon's biggest competitor in the years to come.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

BUY ALERT: This Is Where You Should Enter Home Depot (HD)...

Shares of Home Depot (HD) have been falling sharply in the last month. After topping out around $160.00, the stock is trading below $147.00. Part of the issue is that Amazon (AMZN) is encroaching on their business. After chatting with institutional investors, and analyzing it myself, it appears there is a strong buy trade level approaching. The level is found by connecting the pivot highs from October 2016, May 2017 and August 2017. After connecting these pivot highs and drawing a trend line (as seen in the chart below) the trend line expects to $142.25. That will be a major support level. In addition, at this exact level lies the daily 200 moving average. The fact that these two factors converge at this level, gives investors a high reward, low risk buy on Home Depot.

Gareth Soloway

InTheMoneyStocks

 

[InTheMoneyStocks]

This Leading Retail Stock Will Soon Be In Play

One of the leading retail stocks that is starting to look attractive is The TJX Companies, Inc.(NYSE:TJX). This retail company operates stores under the T.J. Maxx, Marshalls, HomeGoods, Winners, HomeSense, T.K. Maxx, and Sierra Trading Post names. The company also has an online presence with e-commerce sites such as tjmaxx.com, tkmaxx.com, and sierratradingpost.com.

The stock topped out on the daily chart on May 10, 2017 at $80.92 a share. Since that pivot top the stock has declined sharply lower. Today, TJX stock price is trading at $67.64 a share. Traders should now watch for the $62.70 level as the next major support area. This is a mathematical support level that should provide a significant bounce in the stock when tested. Keep this trade level on the radar as we wait for this leading retail stock to drop into my buy level. Please note, the company is expected to report earnings on August 15, 2017.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

HCA Healthcare, Inc. (NYSE:HCA) Needs A Doctor After Earnings

Today, leading hospital owner and operator HCA Healthcare, Inc.(NYSE:HCA) is coming under heavy selling pressure after reporting earnings. HCA stock is trading lower by $3.40 to $82.54 a share in today's session. The stock is still holding above its daily chart 200-day moving average which is at $81.47. Should the stock close below this key level on a weekly chart it would signal that another bearish move is coming. HCA stock does have major chart support around the $77.50 area should it decline further from here. This should be a level that will be defended by the institutional traders and investors, so keep it on the radar.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

This Is Where I Will Buy 3M Co (NYSE:MMM) For A Bounce...

3M Co (NYSE:MMM) is taking a beating after releasing its quarterly earnings. The stock is down over 5% and things are not looking good. Based on chart breaks, I expect a general trend lower to continue until $191.50 is tagged. That will be major gap fill support and the daily 200 moving average should be there as well. This gives huge support and a likely bounce in the stock. This is where I and smart investors will consider buying.

Gareth Soloway

InTheMoneyStocks

 

[InTheMoneyStocks]

The Chart Trend In The Airline Sector Is Down, Where Will It Land?

Most of the major airlines stocks have topped out recently. Leading airline stocks such as United Continental Holdings Inc(NYSE:UAL), American Airlines Group Inc(NASDAQ:AAL), Delta Air Lines, Inc.(NYSEAL), Southwest Airlines Co(NYSE:LUV) and Alaska Air Group, Inc.(NYSE:ALK) have now made lower highs on the daily chart and are trading below their important 50-day moving average. This puts the daily trend of these stocks in a down position. Often when stock decline in this fashion it is a sign of a bigger correction on the horizon for the sector.

Earlier this year, Alaska Air Group, Inc.(NYSE:ALK) was the leading stock in the industry group, but now it is the laggard. Today, the company reported earnings and it is declining lower by nearly 4.0 percent on the session. The stock is now trading below its 50-week moving average which is very negative. Traders and investors must now watch the $78.00 area the next major support level. This is a major retrace level for the stock and it should be defended by the institutional money when retested.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Amazon (AMZN) Confirming Top: Here Is The Targets You Need To Know...

Amazon, Inc.(NASDAQ:AMZN) reported a nasty quarterly miss. Considering their upcoming acquisition of Whole Foods (WFM) and the money that will take, they are not in a good place. The stock sold off only 2.8% on Friday after earnings. However, Amazon is selling another 2.5% today. The second solid sell day off all-time highs confirms a top. This means that Amazon will head lower with only small bounces along the way. The first downside target is $945.00 and the second target is $885.00. The first target on Amazon will have a small bounce once hit, the second target will likely have a large bounce. I personally think Amazon could see the first and second targets hit within weeks.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

ALERT: Massive Headed And Shoulder Pattern On Tesla Inc (TSLA) After Earnings...

Tesla Inc (NASDAQ:TSLA) reports earnings after the close of trading today. Investors and analysts have no idea what to expect. Based purely on the chart, there is a looming head and shoulder pattern. Head and shoulder patterns are very bearish. While it has not triggered, this tells me that whether on earnings or a month later, Tesla Inc is going sharply lower. Please understand, because the head and shoulder pattern has not triggered, earnings are a question mark. However, the bigger pattern signals a trigger in the future. Be ready, it should be a fun trade when it triggers.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Finding The Institutional Buy Level For This Stock

Cooper Tire & Rubber Company (NYSE:CTB) is a leading tire manufacturer that has been steadily trading lower on the charts over the past few months. The stock peaked out at $44.50 a share on April 3rd, 2017, today CTB stock is trading at $34.97. Traders should note that the stock hit its 200-week moving average today and this should serve as short term chart support. Please understand, a close below the $34.00 level on a weekly basis could trigger a further decline.

The institutional buy level for CTB stock will be around the $30.50 level. This is a chart area where the stock was defended in June 2016. This price level will usually be defended again by the institutional crowd when it is retested.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Earnings Season: Know When To Hold Em, Know When To Fold Em

It's earnings season! This is when corporations will report their quarterly results and usually issue future guidance for the company. This is also a period when stocks will often have big price swings after the earning announcement. For many traders and investors it can be an exciting time to trade, but danger lurks when market participants hold stocks into an earnings announcement.

Just yesterday, I closed out a long trade in Dean Foods Co (NYSE: DF) at $14.99 a share. The reason I exited the position was because the company was scheduled to report earnings this morning before the opening bell. Unfortunately for me I lost 0.11 cents on the Dean Foods trade as my entry was $15.10. I know, nobody likes to take losses on trades, but sometimes that is the best move to make ahead of an earnings announcement. If you take a look at the reaction today in Dean Foods Co today after earnings it is not pretty. In fact, DF stock is trading lower by $2.80 to $12.17 a share today after reporting earnings. Believe it or not, this is a decline of nearly 19.0 percent on the day. Now my 0.11 cent loss looks like a victory after this terrible reaction to the Dean Foods Co earnings report.

Now to be fair, sometimes stocks can rocket higher after earnings reports. Many traders will often celebrate with excitement if they hold a stock and are on the right side of the earnings reaction. Just think how I would feel if Dean Foods Co was trading higher by $3.00 after I sold it yesterday, probably not very good. After trading for so many years I have realized that trading earnings is very much like gambling, the odds are simply not in my favor to make that bet. So I have accepted the fact that holding stocks into earnings is extremely risky and simply not my style of trading.

If you do decide to hold a stock into an earnings announcement it is best to hold a low beta stock. A low beta stock is an equity that is less volatile, will historically move in a smaller and tighter range. Earlier this earnings season I held Bank of America (NYSE:BAC) into earnings. The stock traded down about 0.30 cents before ultimately recovering and making new highs. BAC stock is a low beta equity and I was actually in the money on the trade before earnings, so there was not a lot of risk of a major decline. Either way, holding stocks into earnings is extremely risky, every trader and investor should understand the odds are no longer in your favor ahead of a corporate earnings report.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

The S&P Signal Every Investors Should Be Aware Of...

The S&P raised the white flag on Tuesday. After initially surging sharply higher, the market reversed and closed lower. This came on the back of a President Trump verbal threats against North Korea. Whatever the catalyst, the market reversal came after it made a new all-time high. The reversal put in a topping tail, a bearish topping signal. While the topping signal is significant, it is not the first one that has shown itself in recent months. All past bearish topping signals have failed. Investors should view this bearish topping tail with caution until confirmed with a secondary down move. Stay tuned and be aware

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Know This Major Technical Chart Level For Citrix Systems

Technology leader Citrix Systems Inc (NASDAQ:CTXS) is trading at an important chart support level right now. The stock is basically sitting on its 50-week moving average at $75.97. Should CTXS stock price break this important chart level on a weekly closing basis it will likely signal a move lower in the share price. The next major chart support level for CTXS will be around the $72.90 level. This area is a major retrace spot where the institutional traders will often defend the stock. It is also an area where the stock broke out earlier this year, so keep this level on the radar in the near term.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Why I Am Bullish On $M Earnings Tomorrow...

This past week we have seen good retail reports from Michael Kors Hldg (KORS) and horrible reports from Fossil Grp Inc. (FOSL). This is the first quarter in recent history where there has been a mix, both good and bad earnings. Over the last few quarters, it has just been bad for every retailer. So what makes me bullish on Macy's Inc (NYSE:M), who reports tomorrow morning before the market opens? The answer can be found in the stock chart. While still near its multi-year lows, the stock has inched over the daily 20 and 50 moving averages. In addition, the stock has been consolidating for the last week, making a bullish flag pattern. This pattern increases the odds of a surge on earnings. Being a stock chart trader and investor, I am using that to my advantage. I am strongly bullish on Macy's Inc into earnings tomorrow. The company is expected to report earnings of $0.45 on $5.49 billion in revenue. The real key will be margins and guidance going forward.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

MetLife Retreats After Spin-off, Watch This Level

Leading insurance and financial firm MetLife Inc (NYSE:MET) has declined since it announced and completed its spinoff of Brighthouse Financial (NASDAQ:BHF). MET stock peaked out on July 6th at $50.42 a share. Since that high pivot in the stock price the shares have declined to $46.85. Traders and investors should note that MET stock does not have major chart support until the $43.00 level. This is a spot on the chart where the stock broke out in November 2016. As I have stated many time before, when stocks retest major break-out levels they will usually be support by the institutional money. Keep MET stock on the radar when it trades down to the $43.00 level for a long side trade.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Tomorrow Morning Is A Big Day For Retail

Tomorrow morning is a big day for retail. Companies such as Coach Inc(NYSE: COH), TJX Companies Inc(NYSE: TJX), Home Depot Inc(NYSE: HD) and Dicks Sporting Goods Inc (NYSE: DKS) are all scheduled to report earnings ahead of the opening bell tomorrow. What do all of these companies have in common? They have all been hurt by the Amazon effect. Even Home Depot Inc(NYSE: HD) saw its stock drop after Amazon announces that it will sell appliances from Kenmore which is owned by Sears Holdings Corp(NASDAQ: SHLD).

Traders and investors will want to watch the SPDR S&P Retail (ETF)(NYSEARCA: XRT) very closely as this will be driven by these leading retail stocks. Since June, the XRT has been in a trading range between the $41.75 and $38.75 levels. Now we will see if these retail giants will move the needle in the XRT tomorrow.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Don't Follow the Crowd: VIX Call Options Go Up In Smoke

Just think about how many traders and investors bought call options in the popular iPath S&P 500 VIX Short Term Futures TM ETN(NYSEARCA:VXX) last week when the market sold off. The problem is that many retail traders may have bought put options that expire this coming Friday. As you know, volatility is crumbling today falling by nearly 20.0 percent.

Traders and investors should note that the institutional investors play a lot of games with individual equities ahead of options expiration. This Friday is options expiration for the month of August. Last week it was reported that call buying in volatility was at an all time high after last Thursday's stock market decline. Today, many of those trades are sharply out of the money as the institutional investors flip the switch and rally stocks. The lesson here is to not chase parabolic moves after they happen. This one rule will help keep many traders and investors out of trouble especially ahead of a monthly options expiration.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Wal-Mart $WMT Reports Earnings Thursday: Investors Should Be Scared!

Retail has been ugly. Stocks like J.C. Penney (JCP) that were already trading at multi-year lows fell sharply on earnings. In comes Wal-Mart Stores Inc (NYSE:WMT), trading near 52 weeks highs and reporting Thursday. Is Wal-Mart Stores Inc different? The bottom line is this. At 52 week highs, Wal-Mart Stores poses a ton of risk for an investor holding into earnings. They somehow must have a stellar retail quarter, avoiding all the havoc that every other retail company is facing. In addition, there is a trend line on the daily stock chart that shows Wal-Mart is into major resistance. This adds credence to being extremely careful and even bearish on Wal-Mart Stores going into earnings.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Dicks Sporting Goods Stock Price Still Has Lower To Go

Today, leading sporting goods retailer Dick's Sporting Goods, Inc.(NYSEKS) is plunging lower by more than 20.0 percent. The catalyst for the decline in the sporting good giant is simply a lackluster earnings report that was released before the opening bell this morning. Traders should note that the next major technical chart support level for DKS stock price will be around the $22.60 area. This spot on the chart is going to be the major retrace level where the institutional traders should defend the equity. Unfortunately for DKS stock this support level is still another $5.00 lower than its current share price which is $28.84.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

ALERT: Bullish Inverse Head & Shoulder Breakout On Teva Pharma (TEVA)

Shares of Teva Pharmaceutical Industries Ltd (NYSE:TEVA) have finally put in a near-term low. The stock is jumping over 3.5%, but more importantly, broke-out of a bullish inverse head and shoulder pattern. The breakout signals further upside. I have a penciled target in of $20.35. Teva Pharmaceutical Industries has fallen sharply of late, dropping from near $33.00 to $17 in the last few weeks. The bounce I expect is only a near-term move, over the next month or so. Once the upside target is achieved, exit and look to buy the pull back.

Gareth Soloway
InTheMoneyStocks