InTheMoneyStocks Market Analysis

[InTheMoneyStocks]

Epic Short Level Nears On Apple Inc $AAPL

Shares of Apple Inc (AAPL) continue their march higher as more investors jump on the bull bandwagon. With a P/E ratio approaching the high end of the mature company historic levels, investors need to turn their attention to the charts. The chart tells investors that $AAPL has surged from a low in June of $175 to a current high of $206. This monster move signals an overbought situation, but not a defined short signal. That short signal comes to fruition if/when $AAPL trades to $211.75. At this price, the chart shows an epic gap fill plus a double top. This two factor short signal will likely surge investors well for a large drop in the stock price. A near-term pullback to $193 should be seen within weeks of this level being tagged.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Toll Brothers $TOL Struggles To Catch A Bid, Watch This Level

Leading home-builder stock, Toll Brothers Inc (NYSE:TOL), has been steadily declining since peaking in mid-May 2019. At that time, the stock was trading as high as $39.58 a share, but has been slowly falling lower on the charts. Today, TOL stock is trading below its important 200-day moving average. This is usually a sign of further weakness for the shares in the near term. Traders and investors must now look around the $30.00 area for major chart support. This is where the stock was defended in October 2018 and also where the stock reversed a sharp weekly down-trend. This level will likely be solid support when initially retested.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Sohu.com $SOHU Signals Reversal, 30% Upside Near-Term

Shares of Sohu.com (SOHU) are moving higher today, following a beautiful, classic bottoming tail yesterday. Bottoming tails are significant bullish signals This reversal in trend is major for technical traders as the Chinese stock is trading at multi-year lows. While the chart sets up for a surge back to $17.35 in the near-term, traders are particularly intrigued by its total cash per share of $47.97. To state this clearly, the stock is trading at $13.50 while it has a total of $47.97 in cash per share. To put this another way, the market cap of Sohu.com is $530 million while it has $1.88 billion in cash. Based on these metrics alone, this stock is a screaming buy. Just in the near-term, I have an upside target of $17.50. Likely achieved within a month.

Sohu.com is a marketing/media company in China. Sentiment has gotten way too negative on this sector partly because of the China slowdown but also because of the on-going trade war. As most analyst will tell you, the trend war will likely be over before the US presidential election in 2020. In addition, the amount of stimulus thrown at the Chinese economy by the Chinese government has been huge. This will start to trickle down into business spending. At the current valuation, Sohu.com makes a ton of sense as a bottom play with significant upside potential.

Disclosure: Chief Market Strategist Gareth Soloway from InTheMoneyStocks.com owns shares of Sohu.com (SOHU).

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

NIO Inc $NIO Starting Its Next Leg Up, Target $5.00

Shares of NIO Inc (NIO) ran from $2.30 to $4.00 recently. After two weeks of consolidation, the Chinese electric car maker appears to be headed for another big leg higher. With a beautiful bull flag on the daily chart, a necktie has also formed between the 20 and 50 moving averages. This adds extra spice the propulsion of NIO. The stock is surging today and likely will take out the $4.00 high, headed over $5.00. Note the chart below.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Micron Tech $MU Nears Multi-Factor Short Sell Level

Shares of Micron Tech (MU) are up a whopping 50% in the last month. Investors are constantly wondering where to short this overbought semiconductor stock. The answer is, "not quite yet!". The stock is trading near $48/share and the top traders in the world plan on shorting it at $49.50. This level is made up of an epic gap fill and a measured move. Add in multiple extreme overbought indicators and swing traders have an amazing risk/reward short setup on Micron Tech (MU) at that level.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

What Are The Central Bankers So Worried About?

Stocks in the United States have soared since June 4th, 2019. This is when the Federal Reserve Chairman, Jay Powell, basically backstopped the stock markets after a steep May selloff. At that time, he basically stated that the central bank would act appropriately to sustain the economic expansion. The next FOMC (Federal Open Market Committee) meeting will be on July 31, 2019. At this meeting, the central bank is expected to cut interest rates by at least 25 basis points. Some investors, analysts and economists expect the Federal Reserve could even cut rates by as much as 50 basis points at this next meeting. As you see, the stock markets have continued to climb on anticipation of further easing by the Federal Reserve.

Tomorrow morning, ECB President, Mario Draghi, is expected to announce some type of easing in the European Union. You can easily see that this is basically synchronized easing by the central banks around the world. After all, yields are already negative in Europe. What is the problem in the world that has these central bankers so worried right now? On July 8, 2019, Deutsche Bank announced another major restructuring that would layoff 18,000 employees. The bank has a massive derivatives book. This could become a big problem if one or more of the bank's counter parties collapse during a future crisis. Is this the smoking gun leading to more easing by the Federal Reserve and the ECB, or is there something else lurking out there?

Gold has been soaring as investors and traders continue to buy precious metals. As long as the central banks keep their dovish outlook precious metals should continue to out perform. At this time, gold has been soaring higher despite a strong U.S. Dollar. Often in the past, when the U.S. Dollar has been strong gold has been weak, but not this time around. It seems that money keeps pouring into the U.S. Dollar from foreign countries. After all, Europe and Japan have negative rates and many investors are now losing faith in the Euro. So what is the play? Gold simply seems to be the logical winner in this environment. As long as central bank keep their dovish tone gold is the one asset class that should continue to benefit.

Nick Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Cannabis Stocks Get Smoked And Have Lower To Go $CGC

This morning, most of the leading cannabis stocks are trading sharply lower on the session. Popular cannabis stocks such as Canopy Growth Corp (NYSE:CGC), Cronos Group Inc (NASDAQ:CRON), Tilray Inc (NASDAQ:TLRY) and Aurora Cannabis Inc (NYSE:ACB) are all trading down by more than 3.5% today. Unfortunately, all of these stocks continue to look weak on the charts as they are now trading below their important 50 and 200-day moving averages. This puts these stocks in a weak technical position and indicated lower prices ahead before finding a bottom

My favorite name in this industry group is Canopy Growth Corp (NYSE:CGC). In 2018, this company has received a multi-billion dollar investment from Constellation Brands (NYSE:STZ). Traders should note that CGC stock has been declining since March 2019 when it traded above $52.00 a share. The stock should have some solid support around the $30.00 area in the near term. It is also important to remember that the company will report earnings on August 14, 2019.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Here's The Gold Playbook After The FOMC

Precious metals such as gold and silver have been very strong since breaking out in June 2019. As we all know, the major stock indexes rolled over in May, then they reversed course and surged higher after the Federal Reserve backstopped the stock market. Gold, silver and the mining stocks have been a direct beneficiary of the recent central bank's action.

This afternoon, the FOMC (Federal Open Market Committee) is expected to cut the fed funds rate by 25 basis points. This news is already priced into the market, but the language from the central bank is not baked in yet. If the Federal Reserve is extremely dovish then gold, silver gold miners should see more upside in the near term. Should the central bank come out and sound hawkish then the precious metals are likely to pull back and decline in the near term. Either way, the precious metals will be in play this afternoon.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Nasty topping tail forming on $AAPL. Earnings were not as good as pumpers made them out to be. Services growth slowed. That is the only thing that has a chance to make their P/E above a consumer product company at 10. Stock is toast. - Gareth Soloway

 

[InTheMoneyStocks]

Prudential $PRU Tanks After Earnings, Here's The Trade

Today, leading insurance and financial services company, Prudential Financial Inc (NYSERU), is falling sharply after reporting earnings. The company cited weakness in its life insurance and annuities businesses. PRU stock is declining lower by 8.85% to $92.34 a share. Traders and investors should note that the stock is now testing its June lows. A break of this level will signal further downside in the near term. The stock has also broken below its important daily chart 200-day moving average. This weakness tells me that the next major support level will be around the $87.00 area. This level is a major retrace level and an area where the stock broke out in mid-January 2019.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Wayfair $W Has Tumbled From Its Highs, Here's The Trade

Wayfair Inc (NYSE:W) is a leading home furnishing and décor website operator. This stock peaked out on March 21, 2019 at $173.71 a share. Since that high pivot in the stock, the shares have tumbled sharply lower. Currently, Wayfair (W) stock is trading at $121.04 a share. Unfortunately, the stock is in a weak technical position as it trades below its 50-week moving average. Traders and investor must now look lower for solid chart support. The next major support level for the stock should be around the $108.50 area. This level is where the 100-week moving average is located. It is also a level where the stock broke out in late January 2019. This level should be defended by the markets when it is initially retested.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Virtu Financial $VIRT Dives After Earnings & Support Is So Much Lower

Virtu Financial Inc (NASDAQ:VIRT) is falling sharply lower today after reporting earnings. The technology-enabled market maker is trading lower by 13.35% to $19.00 a share. The stock just broke the $20.00 level on heavy volume which was critical daily chart support. VIRT stock is now trading below all of its important daily chart moving averages. This puts the stock in a weak technical position on the charts and signals further potential downside. The next major support level for VIRT stock will be around the $15.00 area. This level is where the stock broke out in November 2017. Often, when a prior break-out level gets tested it will be defended by the institutional crowd.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Short Signal: ROKU Inc $ROKU Topping Tail Alert

Shares of ROKU Inc (ROKU) likely put in a major pivot top today. After a three bar surge on the daily chart, the stock humped again today but is now putting in a possible topping tail. Topping tails are epic reversal signals, especially on charts in extreme overbought territory like ROKU. In addition, upside moves usually end on three bar surges. A pull back is likely in store to a target price of $115.00. This trade setup is pure technical analysis. This means there is finally a reason to short ROKU that has teeth.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Here's The One Stock $TWTR That Benefits From All This Geopolitical Chaos

As you all know, the current geopolitical picture is nothing short of chaotic. Every single day we hear about trade wars, Hong Kong protests, fighting between India and Pakistan, Middle East tensions, European debt problems and so much more. While all of these major geopolitical events can move stock markets and affect investor decisions: there is one stock that seems to benefit from it, Twitter Inc (NYSE:TWTR).

Everyone is using Twitter right now. The biggest user of Twitter is actually the President of the United States. We have trading algorithms that simply babysit every tweet that comes out of the White House. Stock markets move percentage points simply on the back of tweets almost everyday now. In fact, traders simply waits for a tweet from President Trump at 3:30 pm ET every single trading day when the markets are lower.

The current chart pattern for TWTR stock is actually pretty decent at this moment. The stock seems to be consolidating on the daily chart. The share price is still trading well above its 50-day moving average. This is showing much more relative strength than many other leading equities right now. TWTR stock still has a lot of resistance around the $44.50 to $45.00 level, but the longer the consolidation base the higher the stock could go. I'll be watching this pattern closely over the next couple of weeks as it has not given me a buy trigger yet, but it is on my radar now for more upside action.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Align Technology $ALGN Has Been Hammered, Here Is The Trade Level

Late last month, leading clear aligner therapy stock, Align Technology (NASDAQ:ALGN), was hammered lower after reporting earnings that disappointed the street. The stock actually peaked out in September 2018 at $398.87 a share. It then made a lower high on the daily chart on May 15, 2019 at $334.64 a share. The stock is currently trading at $176.00 a share, but it remains in a weak technical position on the charts. The stock is now trading below its 200-week moving average which is a near term negative for the stock price. While the stock is currently oversold it is still signaling further downside before a solid bottom is formed. The one level that has caught my eye in the stock is around the $138.00 area. This level is where the stock actually broke out in May 2017. As you all know by now, I really like pullbacks into past break-out levels as institutions will generally support the equity around this area. Please note, ALGN stock generally trades less than 1 million shares a day, so it is always vulnerable to overshoot levels.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Bitcoin Alert: Here Are The Target Buy Levels $BTC

Bitcoin (BTC) briefly broke $10,000 again today. It has happened at least 5 times in the last month. This constant attack alerts technical traders that eventually it will flush lower. How low? Target 1 is $8,800 and target 2 is $7,575. These are the two levels I plan to accumulate at. I have been patiently waiting to rebuy Bitcoin since it topped out around $14,000. I am a believe in crypto as the future mainly because of the massive printing of fiat currencies by central banks and the increasing debt of countries like the United States. It is unsustainable and a collapse is inevitable. When the epic financial collapse finally comes, debts will vanish and central banks will be dissolved. From the ashes citizens will demand a currency with a defined print structure so governments cannot just print trillions on demand. While I am a believer in Bitcoin, I am also believer in having it as part of an overall portfolio, not the entire portfolio.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

Shopify Inc $SHOP Puts In A Huge Top Signal

Shares of Shopify Inc (SHOP) popped early, making a new all-time high at $401.16. However, within an hour, the stock was back to its lows of the day, putting in an epic technical topping tail. This is a major top signal for investors looking to short the stock. In addition, the brief cross of $400 as an even number adds fuel to the sell signal. Shopify Inc will likely fall to $340 in the near-term.

Gareth Soloway
InTheMoneyStocks

 

[InTheMoneyStocks]

According to this chart it looks like China is supporting their currency a lot less. I would not be so sure that the talks between the U.S. and China are resuming when looking at this spike in the USD/CNY

Nick Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Has Anyone Looked At The RV Stocks Lately? $WGO

It is really something when you look at the weakness in the leading recreational vehicle (RV) stocks lately. The charts for these stocks look absolutely terrible right now. There are three big companies that like to follow in the industry group and they are Winnebago Industries Inc (NYSE:WGO), Thor Industries Inc (NYSE:THO) and Camping World Holdings Inc (NYSE:CWH). All of these leading RV stocks peaked out in January 2018. Since that top, these stocks have really been under major selling pressure. THO and CWH are making new 52-week lows at this time and showing relative weakness.

WGO is a very weak looking chart, but it is much better than THO and CWH right now. This stock is at least off of its 52-week lows right now. So, if I want to buy a stock in this sector I would likely select WGO as it is showing relative strength compared to its peers. Currently, WGO stock is trading around the $31.85 level. The charts are telling me there should be more downside in the cards for this popular RV stock before finding major support. The only level that would be attractive for WGO stock is around the $25.00 area. This support level is where the stock broke out of a down trend in early 2019 and should be solid support when retested.

Nicholas Santiago
InTheMoneyStocks

 

[InTheMoneyStocks]

Back in $NIO. Love this bull flag pattern. A break of $3 on a daily closing basis sends it big. Note the chart below...

Gareth Soloway
InTheMoneyStocks