Friday, July 25, 2014

The U.S. Economy House Of Cards, D.R. Horton, Inc.

If anyone needed proof that there was a disconnect between Wall St. and Main St. then look no further than the housing stocks, in particular D.R. Horton, Inc. (NYSE:DHI). The stock plummeted an eye popping 11.5% in a single day, and basically took down the entire sector. The results were disappointing to investors to say the least, as U.S. sales of newly built houses dropped 8.1 percent in June to a 406,000. So what happened to this "recovery" that we all keep hearing about?

The broader markets are continuing to post new all time high after new all time high, yet we see a stock like D.R. Horton, Inc. (NYSE:DHI) taking a nose dive. The money printing that has been going on since 2008 as well as low interest rates, are supposed to be helping the housing sector, not hurting it. So where is all this money going?

The American public needs to start asking harder questions.

The money has clearly stayed on the balance sheets of the big banks and found its way to the fat cats on Wall St., not to the people on Main St. who need it most. The housing stocks have been lagging the overall markets for quite some time, now we know why. These equities are talking to us, investors and traders need to listen. If the use of all these QE`s cannot give the important housing sector a boost, then how will the overall market fare when QE3 comes to an end in October? There are endless amount of cracks emerging in the glass that is the stock market and economy. The question is, how long can the weakened glass continue to sustain itself under the surmounting pressure? One thing we know for sure, is that no matter what happens, if the market goes up or down, there will always be a trade and plenty of opportunities to make money. All you need to do is read the charts and just like in the past, the charts will once again tell the future far before any news paper, TV show or major financial firm informs the public.

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Parm Mann
Elite Round Table
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The Money Moving Stocks Are: SBUX, AMZN, P, BIDU, & More

Thursday, July 24, 2014

Options Trades, Stock Max Moves: All Revealed Here

Baidu Inc Hits Key Level: Beware Of Earnings Today

Baidu Inc (NASDAQ:BIDU) reports earnings after the market close today. This stock has hit a major level of resistance today at $205. While any stock is a gamble into earnings, this epic move higher into this key level puts the stock at a higher risk of a sell off. Consider that the stock has also rallied from $140 in April 2014 to the high today of $205.50. That is a whopping 47%. I post this not so much as a short signal and trade as a cautionary flag to anyone holding the stock on the long side.

Gareth Soloway
Chief Market Strategist

Boeing Is Coming In For A Landing, Watch This Level

Leading aerospace manufacturer The Boeing Company is trading lower again this morning. The stock has come under major distribution in 2014 after peaking out in January at $144.57 a share. Today, the Boeing Company stock is trading lower by $2.13 to $124.58 a share. Many traders and investors are now hearing that business is slowing down for The Boeing Company. Earlier today, the stock was downgraded by BofA/Merrill Neutral from Buy citing potential cancellations in orders and shrinking military programs. Traders and investors must now look to the charts to find important support levels where the stock could stage a bounce and create a trading opportunity. At this time, The Boeing Company stock should have important support around the $117.75 level in the near term. This was a level where the stock broke out in October 2013. Often, prior break-out levels will serve as important support when retested.

Step inside our swing trader service with our seven day free trial to the Research Center; get swing trade alerts when we buy, sell and enter new positions. Check out our track record of calls given in the Research Center right here. You can't deny the facts, if you follow our trades you will earn consistent profits... join us today and profit for life.

Nick Santiago
Chief Market Strategist

Herbalife Ltd. Technicals Overpowered Bill Ackman's Ego

Looking at the recent Herbalife Ltd. (NYSE:HLF) drama, there is no reason any investor should find themselves in the situation like Bill Ackman placed himself and his investors in. Have you ever let a position go from profitable to a losing trade, without a clear way of managing it? Well, Herbalife Ltd. (NYSE:HLF) is a prime example of why as an investor, you must know how to read the charts and leave your ego at the door. If Ackman did that, not only would he have saved himself millions, he would have made double that.

Imagine if you were going to place a bet on a good ol' street fight. Would you put your money on the street fighter who has a studied and well practiced technique, or the fighter who has never taken the time to learn any kind of strategy for fighting, like martial arts? How about the fighter who has won a match or two by pure luck knockout? Or would you place your bet on the experienced proven fighter who has been winning fights consistently because of his training, dedication and time invested into learning his craft and mastering the technical aspect of the battle? As an investor, you must ask yourself the same question. Should I invest my time and money in those who simply get lucky, or something proven? Should I enter a trade without a predefined exit strategy and basis for managing the position? Well, the answer to the questions is obvious. If you are going to follow or listen to anyone regarding investments, you must find the experienced trader with a proven track record. The ones that have taken years and years to learn the markets and have developed a strategy for managing it. This is the same concept as the pro fighter. As I said, sure one can get lucky with a knockout on occasion, but those who last are those who are committed to the craft.

Let's take this a step further, why not learn the technicals behind the market moves and how the markets function so you can care for your own hard earned money yourself? Doing so will enable you to invest your money with the person that cares most about your investments... you! By learning to read the charts, you can detach yourself from any kind of emotional decision, ego driven analysts with ulterior motives or falsified financial report. Stock charts are one of the most pure forms of recognizing the trend of a stock; informing you of exactly when to take profits and more importantly when to admit you're wrong and take a loss. Stock charts eliminate the noise.

After all, why would you want to spend an endless amount of time reading financial reports which might not be accurate? The same reports that companies use to manipulate and appeal to investors. Let's take the case of Bill Ackman and Herbalife Ltd. (NYSE:HLF). After a revelation by Ackman of his massive short position in the stock, the equity dropped fast. Most amateur investors sold the equity for fear of owning a company which Ackman was calling a "fraud" and "would collapse."

A technical savvy trader, however, would have been short Herbalife Ltd. (NYSE:HLF) well ahead of Ackman's first announcement; ahead of the news and crowds. The reason why those traders who utilized technical analysis were a step ahead of the crowd was based on the weekly chart pattern of Herbalife Ltd. (NYSE:HLF), which was extremely bearish. As the announcement of Ackman's new short position was made, the equity started to sell off quickly, as those who were not aware of the bearish pattern and were long the stock sold into the news. Technical traders who were already short the stock, not because of Ackman, but because of pure and simple technical analysis, were already eying the levels at which to take profits. Also at that point, "chasers" of the falling stock were just starting to pile on the short side... late to the game.

If you were surprised by the epic reversal of this equity from the low, you were utilizing the wrong strategy. Traders who utilize the charts for making their decisions, were not surprised. The chart of Herbalife Ltd. (NYSE:HLF) fell right into the weekly 200ma, prior pivot support and break out level. Many factors supporting the price of the equity were found on the charts around the $53.00 area. Herbalife Ltd. (NYSE:HLF) continued to fall, right into the $24.55 level, which for technical traders was the perfect spot to take profits. That same level was also a great technical level for those looking to enter a long position or buying the stock. After piercing the support level at $24.55, the equity quickly rebounded forming a bottoming pattern in the weekly chart. Now, one must ask, why did Ackman not take the opportunity of this amazing flush to take gains of close to 50% within weeks? Why try to fight the market? Only he knows the answer to that question. But one thing we know as savvy technical traders, investing on the long or short side of Herbalife Ltd. (NYSE:HLF), the opportunity to make lots of money within a short time span was an easy one. Without being a bull or bear, without getting sucked into the hype, just shorting the bearish set up and buying the equity as it came into technical support on the charts.

Herbalife Ltd. (NYSE:HLF) is a prime example of why as traders or investors you should never fall in love with any position. And even more importantly, leave your ego at the door. Always have an entry and exit plan BEFORE entering any trade. Once your trade is in the money, always take some profits off the table while letting the remaining portion ride with a break even stop in place. If Ackman followed these rules he would be sitting on huge gains right now as opposed to a huge ego battle.

If you let a 40% or 50% profit turn into a losing trade, you should stop trading right now.

Just like the moves in Herbalife Ltd. (NYSE:HLF), everyday technical traders can find similar trades. It is our job to find the best support/resistance levels to profit. It is not our job to tell the stock market what to do, or try to force our will on a particular equity. As proven by Herbalife Ltd. (NYSE:HLF), no matter how big you are or may think you are, the market is always right. The market can and will stay irrational longer than anyone can stay solvent.

Learn to read the charts and position yourself on the right side of the trade ahead of any kind of news or hype. Stock charts are a trader's crystal ball into the future. When read properly they can tell us tomorrow's news well ahead of time.

Kiliam Lopez
Pro Trader, Elite Round Table
Follow me on twitter @kiliamLopez

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Today's Money Making Action: QCOM, ETFC, FB, TRIP, & More

Wednesday, July 23, 2014

Epic Market Undertones: See What The Hedge Funds Are Viewing

iShares Dow Jones Transport. Avg. Hits Key Max Trend Line: Shares To Fall

The iShares Dow Jones Transport. Avg. (NYSEARCA:IYT) has soared over the last 18 months, running from $86.50 to $152.00. This is a whopping 75% increase in value. Today a major resistance level was hit. This will finally put in a top in the iShares Dow Jones Transport. Avg. (NYSEARCA:IYT). A 10% pull back would be in order here. Please note the chart below. Take the seven day free trial to the Research Center. See the track record here which boasts a audited return of over 300%. Join today and profit for life.

Gareth Soloway
Chief Market Strategist