InTheMoneyStocks Market Analysis

[InTheMoneyStocks]

Volatility Has Plunged Again, Where Is Support?

Last week, market volatility surged higher as the major stock indexes sold off. The catalyst for the surge in volatility was due to increased tension between the U.S. and North Korea. Now that the so-called geopolitical tension has subsided near term the CBOE Volatility Index(INDEXCBOE:VIX) has declined by nearly 6.0 points from last week's high of 17.28. Is there a support level where traders should look for a bounce in the $VIX? At this time, the major daily chart support level in the $VIX should be around the 10.96 level. Please note, this chart level is a major retrace area from the high and also a spot where the 20 and 50-day moving averages are on the daily chart. This is a level where I will be looking to get involved on a move back higher in volatility.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Trade Setup: Restoration Hardware (RH) Nears Major Buy Price!

Shares of Restoration Hardware (RH) have fallen from a recent high of $80.00 all the way down to near $51.00 I have a major trade level of support at $50.00 and it also happens to be a 75% Fibonacci retrace level. This gives major credence to this level as a bounce point and bullish swing trade. I think it is also important to understand that the stock has not fallen on bad news, but more profit taking. That is a big distinction and why I will be looking to buy Restoration Hardware at $50.00.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Is Sturm Ruger & Co Inc (NYSE:RGR) Out Of Bullets?

Leading domestic firearms manufacturer Sturm Ruger & Co Inc (NYSE:RGR) has been declining since June 12, 2017. At that time, the stock hit a high of $68.80 a share. Today, RGR stock is trading around $48.15 a share which is over $20.00 lower than its June peak. The stock remains in a weak technical position by trading below its 50 and 200-day moving averages. Traders should note that the next major support level for RGR stock will be around the $45.00 level. It should be noted that this level was where the stock was defended in February 2015. Often, these levels will be defended when retested again.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Why The S&P 500 Sell-Off Today May Be Different

The S&P 500 fell 1.5% today. In all fairness, we have seen one-day sharp drops in the market many times before. Every past drop has been an amazing buying opportunity. However, today's sharp decline is very different. Let me go over the reasons.

1. Volume was big. This implies institutional investors and hedge funds were selling.

2. This is the first drop in recent history that has taken out a previous drops low. This means on a technical basis, there is a lower-low in place, a bearish sign.

3. A trend line connecting the previous pivot lows throughout 2017 has been broken to the downside. This implies a key technical break.

4. CEO's abandoning Trump is a huge negative for moving forward business friendly objectives. Whether it is infrastructure spending, tax cuts or a corporate repatriation holiday.

The bottom line is, this may be different than past buy-the-dip opportunities.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

JetBlue Airways Coming In For Landing, Watch This Level

Leading airline stock JetBlue Airways Corp(NASDAQ:JBLU) has been steadily declining since July 13, 2017. At that time, the stock peaked out at $24.13 a share. Today, JBLU stock is trading at $20.27 a share. Traders and investors should note that JBLU stock bottomed on the weekly chart in February 2017 at $18.71. This tells us that this stock will have very good chart support around this level if it is retested. I'll be looking to pick up JBLU stock around the low $19.00 level with a weekly chart stop loss below $17.00.

Nicholas Santiago
IntheMoneyStocks

 

[InTheMoneyStocks]

Is Apple Inc (AAPL) Making A Scary Head And Shoulder Pattern?

Shares of AAPL Inc. (NASDAQ:AAPL) may be forming a bearish head and shoulder pattern. This tells us that today's pop may just be a short lived move, helping to form the right shoulder. If true, the head and shoulder formation states that Apple should start heading lower by Thursday or Friday of this week, never taking out its all-time high. Once it breaches the neck-line at approximately $155.25, the stock will flush sharply, with a downside target of $147.00. I am putting this on watch.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Airline Stocks Nosedive, When Will They Take Off Again?

Many of the major airline stocks topped out in early July. Leading airlines such as Delta Air Lines, Inc.(NYSE: DAL), American Airlines Group Inc(NASDAQ: AAL), United Continental Holdings Inc(NYSE: UAL), Southwest Airlines Co(NYSE: LUV) and others carriers have been all been falling lower since that peak. This decline in the airline sector comes despite the low price of fuel. Traders should now watch these stocks closely as they come into very attractive support levels on the charts.

One airline that is coming into a major support level is Delta Air Lines, Inc.(NYSE: DAL). This stock peaked out on July 13, 2017 at $54.48 a share, today DAL stock is trading at $44.45 a share. I will be watching the $42.00 area very closely for a long(Buy) side trade. This price level was defended in May 2017 and will likely be defended again when it is retested.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Swing Trade Buy Alert: United Continental Holdings (UAL)

The whole airline sector is nearing major support. One of my favorites is United Continental Holdings Inc (NYSE:UAL). After falling from near $82 to its current $63, it is finally oversold and near major technical support. Investors should be looking at $61.50 as a huge bounce level. This is a great swing trade with an upside target of $70.00.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Southwest Airlines Co(NYSE:LUV) Is Now On The Radar

Yesterday, I talked about how all of the major airline stocks have been under pressure since early July. This industry group has been steadily declining over the past eight weeks. The sector is now getting very oversold, but that does not mean that these stocks will not trade lower in the near term. Many of these stocks in the group are now approaching very attractive trade levels.

Southwest Airlines Co(NYSE: LUV) is a stock that is now on my radar. This stock topped out on July 7th at $64.39 a share. Today, LUV stock is trading as low as $51.65 a share, so you can see how much this stock has sold off already. I will now be watching the $48.75 area as the next major support spot on the chart. This was a level that was tested in late January 2017 and should serve as major support when retested.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Insurance Stocks Dump After Hurricane Harvey

As you all know, many of the leading insurance stocks are selling off today after Hurricane Harvey hit Texas. The damage from the storm is unprecedented and the final costs to the insurance companies will not be known for a while. Insurance stocks such as Travelers Companies Inc(NYSE:TRV), Allstate Corp(NYSE:ALL), Progressive Corp(NYSEGR) and others are trading sharply lower during today's trading session.

Travelers Companies Inc(NYSE:TRV) is a leading component of the Dow Jones Industrial Average(DJIA). This stock is weighing on the DJIA today since this index is price cap weighted. Today, TRV stock is trading lower by $3.73 to $122.74 a share. The stock is now approaching its 200-day moving average which will be short term support. Unfortunately, by the time the dust settles on the damage in Texas this stock could actually decline further. Traders should now focus on the $118.00 area as the next major chart support level. This level was defended in April 2017 and will likely be major support again when retested.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Lower Highs Signal Further Downside For Home Depot Inc

Home Depot Inc (NYSE:HD) was one of the market leading stocks until May 16th when it peaked at $160.86 a share. Since that high pivot the stock has been making a series of lower highs on the daily chart. When a stock forms this type of pattern it will usually indicate lower prices ahead before a significant bottom is formed in the equity. At this time, HD stock price is trading below the important 50-day moving average which signals weakness in the near term. Traders should note that the next major support area on the chart for HD stock is around the $139.00 level. This is a level where the stock broke out in February 2017. Often, former break-out levels will serve as major support when retested.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Here Is Where $BBY Will Fall Before It Bounces Hard...

Shares of Best Buy Co Inc (NYSE:BBY) fell sharply as profit taking took control following solid, but not amazing earnings. Best Buy was one of the only retailers trading near/at 52 week highs. This made it vulnerable to selling even with a strong quarterly report. The stock is dropping by 12% today, trading at $55.00. Based on technical chart analysis, it should continue to fade in the coming days until it hits a major technical support at $50.00. The $50.00 level is a technical gap fill support point as well as the daily 200 moving average. I will look to potentially buy Best Buy Co Inc here for a swing trade bounce back to $55.00 (+10%).

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Wells Fargo & Co(NYSE:WFC) Keeps Falling, Where's The Bid?

As you all know, Wells Fargo & Co(NYSE:WFC) stock has been declining for quite some time now. The company was caught in a bogus account scandal that has resulted in numerous fines and congressional investigations. These problems at the bank are still lingering, but history suggests that Wells Fargo & Co will resolve these issues eventually.

Recently, the stock topped out on June 29th at $56.60 a share. Since that high pivot in the stock the price has now declined to $50.97 a share. The stock is also trading below its important 50 and 200-day moving averages. This formation puts the stock in a weak technical position. Traders and investors should watch the $46.00 area as the next major support level on the chart. This is an area that was defended in November 2016. Often, past levels that are support will be defended again when retested. This is a spot where the stock should catch a bid.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Major Test For NASDAQ 100: Is This Bullish Or Bearish?

The NASDAQ 100 (QQQ) has seen massive buy interest in the last three trading days. The two areas seeing the most money flow are biotechnology and key stocks like Apple (AAPL), Facebook (FB), Netflix (NFLX). Basically the FANG names. As a pro, my eye jumps right to the high on the QQQ $146.00 previous high made on July 27th. When this high was made, we saw a massive reversal. Today, we have tested that high again. The big question for any pro trader is, will we close the day above that high? Why is that significant? On a technical basis it will erase that bearish reversal day from July 27th. Should the NASDAQ 100 (QQQ) close above that level, it becomes a bullish chart with likely further upside. However, if the QQQ fails to close above it, the bearish reversal from July 27th still has control. I hope this explains how an expert analyzes a chart to determine a bullish or bearish bias.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Bond Yields Plunge, Alert!

Today, the yield on the 10-year U.S. Treasury Note is declining lower by 7.0 basis points to 2.089 percent. This tells us that money is now pouring into bonds. Why would capital go into stocks if everything was so great? After all, the stock market ended higher last week ahead of the Labor Day holiday. Was that just a bull trap for investors? Perhaps it was, but the bond market has been know in the past to be smarter than the stock market.

The key support level for the 10-year U.S. Treasury Note yield had been 2.10%, but today that level is being sharply breached signaling much further downside in the yield. Remember, when yields decline bond prices rise. Lower bond yields will also hurt the financial stocks. This is evident today as you see stocks such as Goldman Sachs Group Inc(NYSE:GS) and JPMorgan Chase & Co.(NYSE:JPM), each falling by more than 2.0 percent on the session. Tonight, I will be releasing the next key support level for the 10-year U.S. Treasury Note yield in the Daily Market Report.

Nicholas Santiago
IntheMoneyStocks

 

[InTheMoneyStocks]

Shares Of Applied Optoelectronics (AAOI) Near Key Bounce Level

Shares of tech growth stock Applied Optoelectronics Inc (NASDAQ:AAOI) are nearing the daily 200 moving average at $51.00. Just two months ago Applied Optoelectronics was trading above $100.00. This means it will be a 50% haircut. I believe investors can buy Applied Optoelectronics at the daily 200 moving average for a swing trade bounce for at least 10%. I personally plan to buy anywhere between $50-$51.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Major Chart Support Coming Up For This Leading Stock!

United Technologies Corporation (NYSE:UTX) is a leading provider of technology products and services to the building systems and aerospace industries around the world. This company recently struck a deal to acquire Rockwell Collins(NYSE:COL) for $140.00 a share. As usual, when a company buys another business the stock price will often suffer in the near term. That has been the case with United Technologies Corporation (NYSE:UTX).

UTX stock peaked out on July 12, 2017 at $124.78 a share. Since that high pivot the stock has declined down to $110.00 a share. Traders should note that the 200-week moving average sits around $108.66 and this level should serve as solid near term support for the stock price. This stock is now on my radar for a potential buying opportunity.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Where Could Equifax Inc (NYSE:EFX) Make Landfall?

Last week, it was reported that the leading credit services company Equifax Inc (NYSE:EFX) faced a severe data breach. The breach could impact 143 million U.S. consumers. This news sent the stock price of the company tumbling lower. The stock was trading at around $140.00 a share before the news of the data breach. Today, EFX stock is trading at $111.22 a share.

Traders and investors should note that when a stock declines in this type of pattern such as EFX the selling can be violent and long. Many traders might remember when Target Corp (NYSE:TGT) reported its data breach, the selling was sharp and the stock has still not recovered from its decline. EFX stock will have some near term support around the $100.00 level, but the stronger chart support will be around the $92.50 area. This chart support level was tested in February 2016 and should be solid support when retested for the EFX share price.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Serving It Up On A DISH Network Corp

One leading communications stock that has been under pressure over the past two months is DISH Network Corp(NASDAQ: DISH). This stock peaked out in July around the $66.50 level. Since that peak the share price has fallen down to $52.55. Unfortunately, the pattern in the stock tells me that there is further downside in the shares before it makes a significant bottom. My downside projection tells me that the shares of DISH will likely decline into the $46.50 area. This is a level that should be defended by the institutional money. Keep this stock on the radar as I will likely be a buy(long trade) around this area.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Swing Trade Alert : Simon Property Group (SPG) On The Verge Of Big Breakout

Shares of Simon Property Group Inc (NYSE:SPG) are on the verge of a big breakout. This real estate play has been hammered for over a year as they mainly focus on shopping malls and strip malls. Considering the performance of brick and mortar retail stocks, it is no surprise Simon Property Group has been in a major bear market. However, just recently retail stocks like $JCP, $M and others have surged as much as 20%. This is a positive for Simon Property Group and investors should expect at least half that gain (10%). Simon Property Group is on the verge of breaking above a major trend line. Once that happens it should ignite to a target of $175-$180. I am a buyer on this breakout.

Gareth Soloway
InTheMoneyStocks