InTheMoneyStocks Market Analysis

[InTheMoneyStocks]

Volatility $VIX Dips, Is It Setting Up For Another Surge?

The CBOE Volatility Index (VIX) traded down to 11.03 on April 17, 2019. That was the lowest the VIX had declined since August 9th, 2018 when it fell to 10.17. Many traders and investors view the VIX as a fear gauge for the markets. Simply put, when the VIX increases it generally means that the market participants are fearful. On the flip side, when it declines it tells us that the market participants are generally relaxed, calm and often complacent. Recently, the VIX surged to 23.38 on May 9, 2019. Since that high in the VIX it has been declining. Today, the VIX is trading down around the 16.90 level and the markets are all rallying higher. As you can all see, fear in the marketplace has subsided for the time being. Will the VIX surge again? In my humble opinion, it will surge again and it won't be that far away in time. In the past, whenever the VIX has breached the 20.00 level it will usually do it again withing the next couple of months or sooner. So enjoy the relief rally in the markets from the recent oversold condition as it may not last all that much longer.

Nick Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Mylan NV $MYL Technical Signal Says Upside Near Term

Shares of Mylan NV (MYL) have collapsed in the last two weeks, falling from over $28/share to under $20.00/share. This drop is a continuation of the down-trend which started when the stock was $48/share in early 2018. While nasty and ugly, pro traders are starting to take interest after Mylan put in a strong bottoming tail yesterday. Bottoming tails are bullish reversal signals. This means there is likely a near-term pop in the stock. Based on technical charts, Mylan has upside back to $26 before running into major resistance. Pro traders are moving into the stock, looking for this pop.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Alphabet $GOOGL Slides After Huawei Fallout, Here's A Level Everyone Should Know

This morning, the big news was that many leading tech companies would no longer support the Chinese mobile supplier, Huawei Technologies. Alphabet Inc (GOOGL) announced that they are suspending business with Huawei, they will no longer support its Android phone platform. This news has sent GOOGL stock lower by $22.64 (-1.90%) to $1145.98 a share. It should be noted that GOOGL stock has been weak since April 30, 2019 after they reported disappointing earnings. Recently, GOOGL shares were defended on May 15, 2019 at $1121.40 a share. In that trading session the shares surged higher by nearly $57.00, but have been pulling back since that day. Should the recent low in GOOGL ($1121.40) fail to hold as support it would send a major sell signal to the stock. The next major support level will be around the $1045.00 area for the stock. As of now, the stock is still holding firmly above that key level, but it is worth keeping on the radar.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Semiconductor ETF $SMH Tagging Multi-Factor Support

Shares of the Semiconductor ETF (SMH) are down again today as the trade war is red hot. Trading at $101.50, the SMH is now entering a multi-factor support area. First, the daily 200 moving average is here at $101.50. Next, the 50% Fibonacci retrace level from the December 2018 lows to the recent April 2019 highs is at $100.78. The fact that the Semi's are near-term oversold and hitting these two levels at the same time, gives a high chance of a strong bounce in the coming days. A bounce would likely take the SMH back as high as $110.00.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

This Retail Stock $KSS Just Triggered The Mother Of All Head & Shoulder Patterns

This morning, leading retail stock, Kohls Corp (NYSE:KSS), is falling by more than 12.0% after reporting earnings that missed estimates. The stock has been weak since it peaked on April 24, 2019 at $75.80 a share. Today, KSS stock is trading lower by $7.41 to $55.46 a share. So it is easy to see how this stock is already very oversold at this time, but the pattern that is triggering today signals more downside to come. There is a big weekly chart head and shoulders pattern that has developed and is going to possibly trigger by the end of the week. Due to laws of symmetry the pattern suggests a potential decline down to the $35.00 level. Now please understand, these patterns take time to play out. They do not complete their potential declined in a single session, they take time to complete. Traders should also note that any pattern can fail at anytime, so if KSS closes above $60.00 on a weekly chart then this pattern is no longer valid and has failed.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Buy Alert: Kraft Heinz Co $KHC Bullish Case Ahead Of Earnings

Shares of Kraft Heinz Co (KHC) have been in a spiral lower since 2017. The stock topped out near $100 in January 2017 and has fallen almost non-stop lower. While the chart is nasty, there are signs of life as pro traders start to accumulate. First, the stock now pays a 5% dividend yield. With the 10 year yield trading below 2.50%, this makes for an attractive place to park money. Next, Buffet owns a large stake. Buffet rarely loses. Another big factor is the oversold metrics. Almost every technical signal shows an oversold condition with positive divergences starting to appear. This speaks of a coming move up for the stock. Lastly, investor sentiment is as bearish as ever on Kraft Heinz. When investors expect the absolute worst, it does not take much for the company to showcase some light at the end of the tunnel and see a short covering pop in the stock. With earnings next Thursday, signals point to an up-move coming. Calculations show a possible upside target of $41.00 from its current $32.00 price.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Alibaba Group $BABA Target Swing Buy Level Approaching

Alibaba Group (BABA) shares are in free-fall as the trade war with China escalates. While Alibaba has little direct impact from tariffs, it is all about investor sentiment toward China stocks, and it is not good right now. Having said that, pro traders are taking note of a the massive fall in the stock and a major, multi-factor support level coming up at $155.90. There is a major gap fill here, pivot support and a 61.8% Fibonacci level. With these three technical levels in place at the $155.90, pro traders believe it will see a snap back bounce. They are looking to buy Alibaba as a swing trade there.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

#Trump made an error. By showing how much he cares if the markets drop a few 100 points, he handed China a game plan. They play hardball, markets fall and Trump is more likely to give an inch, especially with the elections coming up next yr - Gareth S

 

[InTheMoneyStocks]

Lowe's Cos Inc $LOW Keeps Falling And It Can Go Lower

Lowe's Companies, Inc. (Lowe's) is a leading home improvement company. The Company operates approximately 2,370 home improvement and hardware stores in the United States, Canada and Mexico. Recently, the stock plunged sharply lower after reporting earnings that disappointed the street. Traders and investors should note that the stock actually topped out on April 17, 2019 at $118.23 a share. Today, the stock is trading lower by $2.13 to $93.21 a share. The stock is now trading below it's important 200-day moving average which puts the stock in a weak technical position. In the near term, the stock could have some short term support around the $90.00 area. Unfortunately, the bigger time frame charts are suggesting lower prices are still in the cards for LOW stock. The next major support level for the stock will likely be around the $75.00 level. This important support area is where the stock was defended back in September 2017, it will likely be defended again at that level when retested.

Nicholas Santiago

InTheMoneyStocks

 

[InTheMoneyStocks]

Lowe's $LOW Master Bounce Level Revealed

Shares of Lowe's (LOW) continue to fall sharply after their latest earnings report was horrid. The stock is down from a 52 week high of over $118 in April 2019 to its current $93.00 price. The exodus from the stock is getting overdone, but a swing trade bounce won't come into the stock until it tags $90. Once at $90, there is a multi-factor support level that will pop the stock to almost $100. Pro traders are eyeing $90 as a sweet swing trade level.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Bed Bath & Beyond $BBBY Gap Fill Technical Support Nears

Shares of Bed Bath & Beyond (BBBY) have been grinding lower ever since the company surged on better-than-expected earnings. The down-draft has been sector wide as the consumer seems to be shopping less and only online. While Bed Bath & Beyond still had stellar results, it has been caught in general selling pressure. Having said that, there is a major gap fill approaching that is a strong buy swing trade. The level is $12.25 and about $1.25 away from the current price. At this level, Bed Bath & Beyond is expected to bounce sharply higher. I will be looking to buy at the $12.25 level in the coming weeks.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Alphabet $GOOGL Is Breaking Its Recent Low, Here's Where It Goes Next

Tech giant, Alphabet Inc NASDAQ:GOOGL), is now testing and breaking below its May 15th, 2019 low. This low in the stock was extremely important because the stock bottomed at $1121.40 a share and staged a $49.40 reversal closing at $1170.80 that day. The volume in that session was heavy with 2.9 million shares traded. Today, GOOGL stock is trading below that important low and that is a bearish indication for the stock. A daily chart close below the May 15th, 2019 low should ultimately send another sell signal to the stock. The next major support level for GOOGL stock will be around the $1045 level. This is where the stock staged a reversal in December 2018 and should be defended again by the institutional crowd when retested.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Here's A Leading Biotech Stock That Is Getting Attractive

Most of the leading biotechnology stocks have been very weak over the past couple of months. The SPDR S&P Biotech ETF (NYSEArca:XBI) and iShares Nasdaq Biotechnology ETF (NASDAQ:IBB) have both declined by more than 10.0 percent since early April 2019. Unfortunately for this industry group there looks to be more downside in the cards near term.

One particular leading biotech stock that has been under pressure recently is Amgen Inc (NASDAQ:AMGN). This stock traded as high as $196.87 a share on April 5, 2019. Today, the stock is trading at $168.72 a share, so traders and investors can easily see how this stock has declined so sharply in such a short time span. Shares of AMGN are now trading below their 200-week moving average. This puts the stock in a weak technical position and signals further declines to comes. The stock looks to have a lot around the $160.00 level. This is an area that should be defended when initially tested. It is also a level that was supported in June 2017 which is tells me that this trade area should provide a nice bounce for the stock.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Gold Just Broke Out, Ominous Signal For Stocks?

Gold futures (GC) have been surging higher over the past three trading sessions. Traders that do not have access to the futures market can track and follow the SPDR Gold Shares (NYSEARCA:GLD). This popular ETF has climbed higher by more than $4.50 since May 21, 2019. The precious metal seems to be catching a serious bid since the stock market selloff has escalated late last week. Surprisingly, today the markets are bouncing higher and gold is still catching a very strong bid with spot gold (GC) up by $12.90 to $1324.00 an ounce . This tells me that investors want the precious metal for security and safety. It also signals to me that they do not really believe that today's stock market bounce is sustainable. Gold is the ultimate investment vehicle in times of fear.

Traders and investor should note that the GLD is getting short term overbought on the daily chart. This tells me that the pattern over the next week or two will be extremely important. Should a bullish pattern form then it could signal a potential move up in the GLD to the $130.00 level and possibly more. Remember this old rule, the best moves come from failed moves. Spot gold and the GLD just broke out of a daily chart downtrend and that is the way the markets talk to us.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Cruise Line Stocks Sink, Here's Where This Stock $NLCH Is Headed

Today, all of the major cruise line stocks are falling lower on the session. The catalyst for the decline is due to the U.S. unveiling amendments to the Cuban Assets Control Regulations, banning educational and recreational travel. Stocks such as Norwegian Cruise Line Holdings LTD (NYSE:NCLH), Royal Caribbean Cruises LTD (NYSE:RCL) and Carnival Corp (NYSE:CCL) are all trading in negative territory today.

Norwegian Cruise Line Holdings LTD (NYSE:NCLH) is getting hit the worst today trading lower by 4.29% to $51.97 a share. The stock is testing its important 200-day moving average. A weekly close below this key support level would likely signal more downside in the near term. The next major support level for NCLH stock would around the $47.00 area. This level is where the stock broke out in late January 2019. It is also an important retrace level that should be defended by the institutional crowd.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Ambarella $AMBA Reverses Early Rally, Watch Out!

Last night, leading semiconductor stock, Ambarella Inc (NASDAQ:AMBA), reported earnings that seemed to be celebrated by investors on Wall Street. Unfortunately, the stock has reversed its early pre-market gains. The stock is now flat on the session trading at $39.75 a share. Traders should note that this stock has been weak since May 22, 2019 when news broke that the company could be adversely affected by tariffs and possible blacklisting with one of its largest customers. At this time, this stock looks poised to ultimately trade much lower on the charts. I will be waiting a few days to see how this pattern plays out before buying put options on this stock. The next major support level for AMBA stock will be around the $31.00 level.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Oil Alert: Major Support Tagged

The commodity oil tagged major support today near $50/bbl. The United States Oil Fund (USO) filled a technical gap as well, giving traders a level to buy off of. Note the chart below.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Keep This Level On The Radar for VMware $VMW

VMware Inc (NYSE:VMW) is a leading cloud computing software stock that has been under pressure recently. The stock topped out on May 16, 2019 at $206.79 a share. Since that high pivot, the stock has declined sharply and is now trading at $168.02 a share. Over the past four trading sessions the stock has been forming a bearish daily chart base above its important 200-day moving average. A weekly close below the 200-day moving average will likely cause another leg lower in the stock. Traders should note that the stock has major support around the $150.00 level. This important support area is a major retrace level and also a level where the stock broke out in February 2019. Very often, stocks will be defended at their prior break-out levels.

Nick Sasntiago
InTheMoneyStocks

 

[InTheMoneyStocks]

McDonalds $MCD Drops, Here's The Trade Level

Leading restaurant stock, McDonald's Corp (NYSE:MCD), has been a major winner in 2019. Unfortunately, today the stock is selling off sharply trading lower by $3.36 to $202.11 a share. It should be noted that MCD stock still remains in an up-trend and above all of its key moving averages. The stock has very solid daily chart support around the $194.00 level. This is where the stock pivoted on May 2, 2019. Often, when a stock is in this type of a strong up-trend it will be defended by the institutional crowd when the first important support level is tested.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Strong Short Signal: American Express $AXP

Shares of American Express (AXP) are putting off a multi-factor strong sell signal today. The stock chart started out with a squeeze higher only to reverse back to the lows. This is creating a topping tail on the daily chart that signals a sell. In addition, the American Express chart has a time count which also tells investor of a coming strong pull back. Based on the technical chart, the pull back is likely to hit target of $120 in the coming days. Pro traders are shorting the stock as a quick swing trade as well as buying puts. Note the chart below.

Gareth Soloway
InTheMoneyStocks