Tuesday, July 26, 2016

Chart Level Alert: U.S. Steel Corp (X) Flying High!

United States Steel Corporation (NYSE:X) reported earnings this morning. The stock has soared, making new 52 week highs.

** Where is X heading and what caused the pop?

Earnings were solid but this run higher is more based on short covering than positive results. This tells us the pop in the stock price will run out of steam. The question is, at what price level? The price level to watch is quickly approaching based off a beautiful trend line seen in the chart below. Look for a max move of $23.50 on U.S. Steel before a pull back begins.

Gareth Soloway

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Earnings Plays Are Everywhere, Trade These Stocks

Monday, July 25, 2016

Where Is Trade Level For The Gold Mining Stocks?

Don't Just Eat Corn, Trade It $CORN (Upside Alert)

Teucrium Corn Fund (NYSEARCA:CORN) is the ETF that tracks the commodity CORN. This jumped on my radar on Friday because of the oversold chart put in a reversal signal known as a bottoming tail. Bottoming tails are candles on the chart that are important when they occur at multi month lows. This is the case on CORN. When this occurs, the odds heavily favor a move to the upside.

Note the chart below. Upside is likely to $21.50 in the next month or two.

The ETF for the commodity CORN put in a bottoming tail, which signals price reversal

Gareth Soloway

Just Trade It: DHR, KMB, DATA & More In Play Today

Thursday, July 21, 2016

Three Reasons Why The U.S. Dollar Will Soar

A fair case can be made that every country in the world is trying to devalue its currency at this time. The reason for a country wanting to devalue its currency is simply because it will help boost exports. In other words, a country with a weak currency can sell more goods abroad. A good example of this would be a weak Japanese Yen should help Toyota Motor Corp (NYSE:TM), Honda Motor Co (NYSE:HMC) and other Japanese companies to sell more cars or products to other nations that have a stronger currency. At this time, almost every country in the world is trying to deflate their currency for this reason.

The U.S. Dollar has been a very strong currency since 2014. Please understand, the U.S. Dollar is not strong because it is such a great currency, it is strong because so many other nations are desperately trying to devalue their currency in order to boost exports and revenues. Below I will list three reasons why the U.S. Dollar will continue to surge over the next year.

1. The European Central Bank (ECB) has implemented their own form of quantitative easing. This includes negative interest rates. Just today, ECB President Mario Draghi said that he stands ready to act with additional stimulus if it sees it as necessary. So in other words, he is ready to try and devalue the Euro. This type of stimulus action be the ECB can only help to strengthen the U.S. Dollar.

2. Japan and its central bank called the Bank of Japan (BOJ) have also been trying to stimulate their economy by following easy monetary policies. Japan has also implemented negative interest rates to their banking system and this policy could continue for the foreseeable future. Japan’s central-bank governor, Haruhiko Kuroda said the Bank of Japan is ready to expand its bond-buying program and cut interest rates further into negative territory as it tries to stimulate economic growth.

3. China is another country that is facing a slowing economy. China is the world's second largest economy. The giant country is facing slowing growth, defaults, a real estate bubble popping and tightening credit. The Chinese central bank seems to be adding liquidity to the system all the time to try and inflate asset prices. These monetary policies by the Chinese will just help to keep the U.S. Dollar strong in the near term.

Some ways to trade and follow the U.S. Dollar is to track the U.S. Dollar ETF's. They are PowerShares DB US Dollar Bullish ETF(NYSEARCA:UUP), or the PowerShares DB US Dollar Bearish ETF (NYSEARCA:UDN).

Nick Santiago


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