Good Reward/Risk for Longs

The S&P 500 chart gives us good reward/risk trades here.  On the SPX itself stops can be placed near $1318 (Tuesday's low…which was also the 50 dma and 61.8% Fibonacci retracement),  Upside targets as we see them are between $1380 and $1400, giving us a 2:1 reward/risk ration on the conservative side.

You Say ‘Home’ I Say ‘Depot’

This morning Home Depot served up its latest earnings release and upped its full year profit forecast.  Sales however were down…, expenses as well.  Either way, the stock is up around 1.50% as of this writing and  again touching on the critical $18 resistance area.  We remain long a core Bucket 3 holding of HD […]

Mind The S&P Futures Gap From April 20th

On May 5th the top of the large 15 point up-gap from April 20th was tested but never attempted a fill.  Last week Wednesday, Thursday and Friday the tape again felt heavier.  We are thinking that should this April 20th gap again get tested it could then have a good chance of filling.  If the […]

Morning Look At the S&P 500 Technicals

Good Morning All! A real quick glance at the chart of the SPX technicals reveals a bullish close yesterday (long tail on the candlestick), as well as closing above the critical 1300 area.  One more bullish day today would confirm a near-term bottom.  On the other hand, one more weak day today could lead the […]

Apple (AAPL) Was The Clue To The Late-Day Sell-Off

As discussed yesterday, AAPL was the main stock I watched today for clues whether the market will hold up today.  Sure enough, after a failed sell-off attempt late morning, AAPL spent the second half of the afternoon letting sellers dictate the market.  Technically today's price action was pretty meaningless for AAPL as well as for […]

Semiconductors (SMH) May Trade Lower

After trading up in a nice and night upward channel from September 2010 until early March of this year, the semiconductors swiftly sold off by the tune of almost 10% in just eight trading sessions.  From quick move down, the SMH has now retraced (moved up) a little over 50%, which also coincides with the […]

Best Buy Just Broke A Multi-Year Support Level

Why? Weak earnings and a downgrade to 'sell' from Citigroup.  Price action? See the chart below and notice the break below multi-year support at $31 this week.  How much lower can it go?  I see $25 as a next target.

Molycorp (MCP) Ready To Move Higher

Looking at the chart below you can see the nice consolidation pattern triangle that MCP has formed since early January.  Yesterday the rare earth stocks had a huge run and MCP rallied around 17% on the day and right through the 50 day moving average and out of the consolidation pattern.  I am happy to […]

Goldman Sachs Re-Testing Uptrend From Below

Note the rising blue dotted line in the chart.  GS broke through it on March 7th and now is re-testing it from below.  I don't want to go as far as saying it's make or break here for GS, especially because of the dividend-happy news from last Friday by JPM, WFC, and today from C. […]

Finding Opportunity In Beaten-Down Stocks

  As part of my multi-timeframe approach to managing money I specifically look for strategies that offer a high probability of profits and allow to be traded with a risk-averse setup.  Sometimes this means just trading the stock, sometimes this means using options instead, and sometimes it means using both. One of my favorite strategies […]