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Issue #484 
Jun 26, 2016 | Newsletter
The newsletter with chart analysis for stocks and stock indexes |
Stock Indexes Analysis/Evaluation
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| British Vote to Leave Euro. Market Tanks!
DOW Friday closing price - 17400
The DOW generated a classic negative reversal, having gone above the previous week's high and then closing below the previous week's low. In addition, the index closed near the lows of the week and further downside below last week's low at 17356 is expected to be seen this week.
The DOW gave a strong sell signal on the weekly closing chart, having closed below the previous 15-week low weekly close at 17500. This was the first indicative sell signal on the weekly closing chart given since the first week of the year when the entire market took a tumble, suggesting that most (if not all) of the gains seen since February might be at risk of being given back.
The news (Brexit exit) that caused the drop in the DOW was fundamental, which does make it much more serious that it would otherwise might have been, especially since it is a problem that is not likely to be solved on a short-term time frame. Making things even worse on a chart basis is the Death Cross of the 50-week below the 100-week MA's that occurred 14-weeks ago and that has only occurred twice before in the last 20 years, which does suggest that not only was the news fundamentally negative for more than the short-term but also negative on the chart for a bigger drop than might be imagined otherwise.
The last 2 Death Crosses that occurred in the DOW were in January 2001 with the first drop of consequence occurring 12 weeks after the cross and it was a drop of 1518 points over a period of 5 weeks. Ultimately though, the index dropped a total of 3500 points (from a higher high than seen before the first drop) over a period of 21 months before a bottom was found. The second Cross was in August 2008 and that one generated a drop of 5398 points but over a 7 month period of time before a bottom was found. It is difficult to compare this Death Cross to the one in 2008 as that had a set of fundamentals that do not compare at all with the ones now, but the one in 2001 does have some similarities, at least as far as the chart is concerned, suggesting there is a higher chance of this scenario being compared to that one.
To the upside and on an intra-week basis, the DOW will show very minor resistance between 17470 and 17500, minor between 17600 and 17635 and minor to perhaps decent between 17750 and 17796.
To the downside and on an intra-week basis, the DOW will show minor but short-term indicative support at 17331, minor again at 17212 and minor to decent between 17116 and 17125. Below that level, there is decent as well as strongly pivotal support between 17037 and 17067 that will likely include the bottom of the 17000 demilitarized zone at 16970. Below that level, there is open air until 16333 is reached, that does include the 200-week MA, currently at 16270.
The chart of the DOW strongly suggests that at the very least the index will get down this coming week to the support at 17212, which is also where the 50-week MA is located. Nonetheless, neither support is considered strong enough, at least not on an intra-week basis, to prevent further downside from occurring. As such, a drop to somewhere between 17037 and 17125 is likely to be seen. Some automatic chart support buying will likely be found there but if the bulls are unable to stop the fall at those prices, panic is likely to ensue as there is no dependable chart support below that area until 16333 is reached.
Uncertainty about the future of Brexit is the biggest problem facing the DOW bulls at this time as fundamentally there are nothing but questions with no clear answers. Until some of those questions are answered, the probabilities will strongly favor the bears.
With the earnings quarter starting in 2 weeks, it is possible that the DOW could mimic the Death Cross scenario from 2001 with the index dropping down to the 16333 level (a drop of about 1700 points) over the next 2 weeks and then generating some kind of a meaningful bounce if the earnings in the first week or two are better than expected.
Probabilities strongly favor the bears in the DOW this week.
NASDAQ Friday closing price - 4707
The NASDAQ generated a "classic" negative reversal week, having gone above the previous week's high and then closing below the previous week's low, as well as giving a sell signal on the weekly closing chart, having closed below the low weekly close from May at 4717. The index closed on the lows of the week and further downside below last week's low at 4698 is expected to be seen this week.
The NASDAQ now shows a confirmed double high on the weekly closing chart at 4938/4942 as well as having given a clear failure signal regarding closure of the breakaway gap from January between 4999 and 4980, which if followed by another weekly gap on Monday would generate the kind of chart formation that would incite new and strong chart selling interest.
The NASDAQ is already showing a bearish breakaway/runaway chart formation on the daily chart, having gapped down on June 10 between 4940 and 4917 and on Friday between 4859 and 4798. If the index breaks below the 15-week support at 4678 on Monday, the gap formation will be confirmed and selling interest will increase strongly.
To the upside and on an intra-week basis, the NASDAQ now shows very minor resistance at 4785 and minor but likely short-term pivotal between 4798 and 4821. Above that level, there is very minor resistance at 4836 and 4862, minor at 4882 and minor to decent but likely pivotal as well at 4910.
To the downside and on an intra-week basis, the NASDAQ now shows decent as well as pivotal support at 4678, minor between 4607 and 4614 and then decent between 4487 and 4547. Below that level, there is minor to perhaps decent support at 4292, and decent as well as longer term pivotal support at 4209, which does include the 200-week MA, currently at 4235.
The NASDAQ was once again the index that received the most selling interest, having dropped down 2% this past week with the SPX having dropped 1.7% and the DOW 1.6%. As long as the index receives the most selling interest, the probabilities favor the bears as the NASDAQ is likely to be the one the bulls key on when buying interest is discovered.
The NASDAQ is facing a very pivotal support level this week at 4678, which is only 29 points below Friday's close. The importance of 4678 is high as that is the only support level built "this year" before the year's low at 4209 is reached. As such, a break of that level will wash out all the positive action seen in the past 4 months as well as likely push the index down at least another 3% on an intra-week basis. Based on the fundamental news, the probabilities do not favor the bulls being able to defend that important support.
The probabilities favor the bears in the NASDAQ this week.
SPX Friday closing price - 2037
The SPX generated a negative reversal week, having gone above last week's high and then closing below last week's low. In addition, the negative reversal will be seen as a successful retest of the 11-month high at 2120 seen 3 weeks ago, which does strongly strengthen the established all-time top at 2134 with a failure signal added.
The SPX closed on the lows of the week, suggesting further downside below last week's low at 2032 will be seen this week. In addition and on a fundamental basis, the Brexit departure will likely affect the index the most, given that the probabilities of an interest hike this year have plummeted after the announcement. It is now highly unlikely that the Fed will consider an interest rate hike this year as it would strongly and additionally affect the Euro.
To the upside and on an intra-week basis, the SPX now shows very minor resistance at 2050, minor at 2060/2064 and minor to decent between 2071 and 2084.
To the downside and on an intra-week basis, the SPX shows minor to perhaps decent support at 2025, minor but short-term pivotal (at least on a daily closing basis) between 2019 and 2022 and then nothing until minor at 1993. Below that level, there is minor but short-term pivotal support between 1967 and 1972 and then nothing until minor to perhaps decent support between 1891 and 1903.
Using the weekly chart, the SPX has 3 intra-week support levels that the traders will be looking at this week, at 2025, at 1993 and most importantly at 1972. A break below 1972 will open the door for a drop down to the 1900 level and perhaps even down to the 200-week MA, currently at 1855. Nonetheless, on a daily closing basis, the 200-day MA, currently at 2021, and on a weekly closing basis, the 50-week MA, currently at 2024, are likely to be indicative of any strength that might be left after the Brexit news. A close below those lines this week will further cement the negatives that came out and likely generate new selling interest for the short to mid-term.
Probabilities favor the bears in the SPX this week.
The vote to exit the Euro made by the British this week is a fundamental game changer that could affect the market the next 2 years as that is the time frame that is expected to be needed for the Brits to actually leave the currency. The uncertainty that is to follow regarding not only the Brits but the entire European community that is part of the Euro, as well as how all of that will affect the rest of the world, is likely to supply the bulls with very little ammunition with which to generate sustainable rallies at this time.
Chart-wise, sell signals of consequence were given on the weekly closes and with likely no respite to be found over the weekend, the negative action seen on Friday is highly likely to spill over to this week. In fact, a 1-day response to this historic news is likely no clear example of how much more could be seen once the news is evaluated more closely. As such, the possibilities of not only further selling but perhaps even stronger than seen on Friday is high.
On the economic front, there is quite a bit of information scheduled for this week, with 3rd estimate of GDP and Consumer Confidence reports due out on Tuesday, Personal Income and Spending on Wednesday, Chicago PMI on Thursday and the always important ISM Index on Friday. Unfortunately, all of those reports are likely to be ignored or put aside until more information about how Brexit will affect the world comes out. It is highly unlikely that information will come to light this week.
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Stock Analysis/Evaluation
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CHART Outlooks
The Brexit Vote to exit the Euro turned the market upside down and generated the biggest 1-day drop since 2008, as well as transformed committed buyers into scared sellers. With uncertainty about the consequences that will come from such a decision and no clear time frame as to when clarity will be found, the probabilities of further downside of consequence are high.
As such and at least for this coming week, the only good options are short positions. By the same token, there are efforts going on to annul the vote and though the probabilities of such action occurring are small, the reality is that blindly shorting stocks this week is risky, especially considering that most stocks took a big tumble this week and dependable stop losses are far away from whatever entry points are available, meaning that risk/reward ratios on most shortable stocks are not good enough to consider taking.
Below are 3 stocks to short that offer decent (not great) risk/reward ratios but offer good reasons to short. The 1 purchase mention is in the stock that I have mentioned for the past 4 weeks and believe has strong long term reasons for higher prices but that has not reached my desired entry point. Perhaps now with the market in a tumble, the desired entry point will be reached. I am still a buyer if that occurs.
SALES
NFX Friday Closing Price - 41.80
NFX is a company in the oil exploration business and as such more tied in to the price of oil than to whatever ills Brexit may bring. Nonetheless, I have been expecting oil to get into a correction phase as an inverted H&S formation is in the forming and Brexit seems to have caused the building of the right shoulder to start, meaning that the stock may head lower as well.
NFX made a new 21-month high this past week but then fell back to close slightly in the lower half of the week's trading range and with the stock closing on Friday at the previous high, a red close on Monday would give a failure signal that would likely generate new selling interest. It also needs to be mentioned that it is one of the few stocks that I was able to find that still offers a decent risk/reward ratio after Friday's stock market collapse.
NFX gapped down on Friday between 42.64 and 42.28 but the bulls were able to rally the stock late in the day to close in the upper half of the day's trading range, suggesting the first course of business for Monday will be closure of the gap. Nonetheless, there is minor to decent intra-week resistance at 42.53 that will not be easy to break, especially if oil is under sell pressure, meaning that a failure to close the gap, followed by a red daily close, would give the bears enough ammunition to push the stock lower. In addition, a rally up to the gap area will give the sellers an excellent risk/reward ratio and a decent to high probability rating.
To the upside and on an intra-week basis, NFX will show minor resistance at 41.99, minor to perhaps decent at 42.53 and decent at last week's high at 44.08. Above that level, decent to perhaps strong resistance will be found at the 54-month high at 45.43.
To the downside and on an intra-week basis, NFX will show minor support at 39.62 and at 39.10, minor to decent but short-term pivotal at 38.49 and minor to perhaps decent but mid-term pivotal at 37.34. Below 37.34 there is a vacuum of support until 34.41 is reached, which is the objective of this mention.
The key to this trade has to be the Brexit aftermath that is likely to cause most stocks to fall until more is known. Nonetheless, when throwing in the fact that oil has reached a level of resistance that is likely to generate some short-term selling (without Brexit), as well as a small correction, NFX just happens to be a stock that offers an entry point to a short trade that is defendable and risk/reward attractive.
The stop loss offered at 44.35 is decent as NFX would have to immediately annul the negatives seen on Friday (unlikely) but it also needs to be mentioned that the stock has a strong resistance level at 45.43 that is almost 5 years old and that likely would require oil to break out and go higher at this time, meaning that from a resistance point of view, this short trade is highly defendable if the desired entry point is reached.
Sales of NFX between 41.98 and 42.52 and using a 44.35 stop loss and having a 34.41 objective will offer a 3.2-1 risk/reward ratio.
My rating on the trade is a 3.25 (on a scale of 1-5 with 5 being the highest).
GS Friday Closing Price - 141.97
GS has been on a downtrend since June 2015 when it got up to a high of 218.77, given that on a fundamental basis the company has fallen out of disfavor in the financial industry. In January, the stock broke below the 200-week MA, which is a long term indicator, and even when the overall market rallied the bulls were only able to rally the stock back up to the MA line to successfully retest the break, strongly suggesting that the downtrend is likely to continue, especially now with the Brexit aftermath.
Based on the overall selling seen on Friday due to the Brexit vote, GS made a new 38-month daily and weekly closing low on Friday and closed on the lows of the day/week suggesting further downside will be seen this week, especially considering that there is no support below for another $4+.
To the upside and on an intra-week basis, GS will show minor resistance at 150.50 and then decent (as well as pivotal) at 152.80.
To the downside and on an intra-week basis, GS will show very minor support at 140.34 and then minor to decent at 137.42. Below that level there is no support until minor support is found at 135.79 and then decent at 129.50.
GS has been on a strong downtrend that even without the Brexit vote seemed destined to go lower, meaning that there are outside reasons (other than Brexit) to consider this short. The only possible negative to the short trade is that using a stop loss 10 points above the most recent high at 152.80 does not offer a good risk/reward ratio, meaning that a more sensitive stop loss needs to be used, which in turn lowers the probability rating. By the same token, for a myriad of reasons shorting GS is a trade that has potential to be a home run.
As such, the stop loss given will be based on the 10-minute chart. Evidently if the Brexit aftermath continues to be as negative on Monday as it showed on Friday, GS, should be one of the stocks that will not generate any rally.
Sales of GS between 141.25 and 141.97 and using a stop loss at 143.55 and having a 129.50 objective will offer a 5-1 risk/reward ratio.
My rating on the trade is a 2.75 (on a scale of 1-5 with 5 being the highest). Nonetheless, the rating on the trade would be a 4 if a 152.90 stop loss is used.
HAL Friday Closing Price - 43.92
HAL gave a long-term sell signal 17 months ago when it broke below the 200-week MA, currently at 45.60. For the past 12 months the stock has stayed below the MA line though 4 weeks ago the line was tested with an intra-week rally to 46.69 and once again was tested last week with a rally up to 45.86. Nonetheless, the highest weekly closing during this period of time has been 44.38.
HAL closed on Friday on the lows of the week, not only suggesting that further downside below last week's low at 43.56 will be seen this week but that the stock, having tested the line successfully, is likely to move back down to test the one of the 3 intra-week lows seen the past 17 months at 37.21, at 30.93, or at 27.64, all depending on how much damage Brexit causes to the market.
HAL is still in an established bear market, meaning that even without Brexit the bears are in control, which in turn with Brexit, the probabilities of success with a short trade are high.
To the upside and on an intra-week basis, HAL will show resistance at 45.80 and pivotal resistance at 46.69.
To the downside and on an intra-week basis, HAL will show decent and short-term pivotal support at 42.47, minor at 41.46, and then nothing until minor to perhaps decent at 39.32. Below that level, there is decent but also somewhat pivotal support at 38.24 and then minor to decent at 36.77/37.21 that includes the 200-day MA, currently at 37.10. Further support is found at 34.36, at 33.26, at 30.93 and decent to strong at 27.64.
The weekly chart of HAL strongly suggests that a drop back down to at least the $40 demilitarized zone will be seen, perhaps as early as this week. Nonetheless, support of consequence is not found until the 36.77-37.21 level is reached, which will be at this time considered the main objective. By the same token and considering that the stock is still in an overall bearish mode (under the 200-week MA), drops down to the $30 are certainly a viable scenario.
Sales of HAL between 43.72 and 44.16 and using a stop loss at 45.96 and having at least an objective of 37.00 will offer a 3-1 risk/reward ratio with the viable possibility of the trade offering a 6-1 risk/reward ratio if the 36.77 level is broken and the $30 level is targeted.
My rating on the trade is 3.75 (on a scale of 1-5 with 5 being the highest).
FCX Friday Closing Price - 10.58
FCX made a new all-time intra-week and weekly closing low in November, having broken the previous all-time weekly closing low at 8.40 seen in December 2008 and continuing downward to 3.52 which was the low seen in January. The stock had been on a major 5-year downtrend from 61.34 to 3.52 that was evidently caused by some fundamental problem with the company.
Nonetheless, FCX evidently found a major bottom at the 3.52 level as the stock negated the major break of support in February and has continued upward to the recent high at 14.06 that was reached 3 weeks ago. The 4-month rally has caused the stock to quadruple in value (from 3.52 to 14.06), strongly suggesting that whatever fundamental problem caused the 5-year downtrend has now been eliminated.
FCX convincingly broke above the 200-day MA in February, currently at 9.20, for the first time in 17 months and continued higher to 14.06 (seen 3 weeks ago) which is an area of decent intra-week resistance as it represents the 10-month high seen in October of last year. The bulls were unable to break through that level the first time around, likely meaning that the break of the 200-day MA is likely to be tested.
It does need to be mentioned that the chart of FCX seems to be in the process of building an inverted Head & Shoulders formation with the right shoulder being the drop down to 7.76 (9.52 on a weekly closing basis), the head at 3.52 (3.94 on a weekly closing basis) and the right shoulder being in the process of being built. The necklines are the 14.20 high seen in October and the 14.06 high seen 3 weeks ago. When the right shoulder is built and the neckline broken, the objective of the flag would be 24.74.
To the upside and on an intra-week basis, minor resistance is found between 11.94 and 12.12 and then minor to perhaps decent at 12.64. Decent resistance is found between 14.06 and 14.20.
To the downside and on an intra-week basis, minor support is found at 9.82, very minor support at 9.52, minor at 9.10, minor to perhaps decent between 8.47 and 8.76 and decent at 7.76.
FCX bulls failed to generate a breakout above the 7-week high at 12.04 and with the Brexit aftermath, the stock reversed direction to close on the lows of the week, suggesting further downside below last week's low at 10.51 will be seen this week. With the bulls failing to break out after the positive reversal from the 8-week low at 9.82 seen the previous week that low is now likely to be tested this week with a drop down to at least 10.21. Nonetheless, if the 9.82 low is broken, new selling interest will likely appear, meaning that the desired entry point into the trade may be reached this week or at the latest the week after.
It is highly likely that the 200-day MA, currently at 9.30, is still the main target but given that the line is only important on a daily closing basis, intra-week drops could be seen that would take the stock down to at most the 7.76 level but more probably down to 8.76. Such action would be considered the construction of the right shoulder of the H&S formation.
I would venture an educated guess that FCX will find strong buying interest somewhere between 8.47 and 9.33 with a higher probability of support being found near the high of that range than the low of that range.
Purchases of FCX between 8.48 and 9.34 and using a stop loss at 7.65 and having a 24.74 long-term objective will offer a 9-1 risk/reward ratio.
My rating on the trade is a 4 (on a scale of 1-5 with 5 being the highest).
This is a standing mention, meaning that if the desired entry points are not reached this week but no rally of consequence is seen, it will be just as good the following week or the week after.
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Updates
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| Updates on Held Stocks |
Closed Trades, Open Positions and Stop Loss Changes |
| AAPL made a new 6-week intra-week and weekly closing low on Friday and closed exactly on the 200-week MA, currently at 93.35. The stock closed near the lows of the week and further downside below last week's low at 92.65 is expected to be seen this week. Important intra-week support is found between 92.00 and 92.39 and pivotal mid-term support is found at 89.47. By the same token, any daily close below 90.34 or weekly close below 90.52 would be a strong negative that would suggest further downside of consequence likely to be seen with $75 as the likely downside objective. Short-term pivotal resistance now found at 96.89. Probabilities favor the bears. ARNA made a new 17-day low with a drop down to 1.75 this past week. Nonetheless, the break was expected to be seen since there were multiple intra-week lows (6) on the weekly chart between 1.83 and 1.86 that begged to be broken. The stock closed slightly in the upper half of the week's trading range, opening the door for recovery since it can be said the 1.67-1.73 downside target may have been fulfilled with the 1.75 low seen. A rally above last week's high at 1.85, especially if the stock closes above the 200-day MA, currently at 1.87, would suggest the backing and filling around the 200-day MA is fulfilled and that the stock is ready to begin further recovery and a short-term uptrend. Probabilities slightly favor the bulls. Nonetheless, with the stock market likely to head lower, drops down to 1.67-1.73 could still be seen. ENG generated a negative reversal week, having gone above the previous week's high and then closing below the previous week's low. The stock closed on the lows of the week and further downside below last week's low at 1.16 is expected to be seen. An additional negative is that the bullish flag formation that had been built on the daily chart was negated when the stock broke below the bottom of the flag at 1.20. The weakness was likely due to the fall seen in the indexes but ultimately this stock should not be all that sensitive to the overall market. Nonetheless, the action seen suggests the stock could fall back down to the 200-day MA, currently at 1.07, especially given that there is previous intra-week support at that price. Overall no damage was done to the chart so the longer term outlook remains positive. FCEL made a new 4-month intra-week and weekly closing low on Friday and closed on the lows of the week, suggesting further downside below last week's low at 5.17 will be seen this week. The chart has now turned definitely short-term bearish with the first downside target being the 4.80-4.90 level. By the same token, the support found at the $5 level is strong and as such, expected to hold up at this time. Minor to perhaps decent resistance is now found at 5.58 and decent as well as short-term pivotal resistance is found at 5.86, Probabilities favor the bears this week. FSLR generated a very negative week, having tested the 200-week MA, currently at 50.45, with a rally to 50.40 and then generating a negative reversal week, having gone above last week's weeks high and then closing below last week's low and in the process making a new 8 month low. The stock closed on the lows of the week, suggesting further downside below last week's low at 45.73 will be seen this week. Very minor support is found at 45.60 and then again very minor at 44.04 and minor at 43.28. Below that level, there is minor support at 41.56 and decent support between 40.24 and 40.56. Decent to strong support is found at 39.18. The stock finds itself in a vacuum of support with 42.71 as a likely downside objective for this coming week. It is important to note that a drop below the most recent important low at 40.51 would be an additional negative that would weaken the chart additionally and a break below 39.18 would be a longer term bearish indicator. Probabilities strongly favor the bears this week. KNDI generated a red weekly close but it was not an unexpected event as the recent double low at 6.10/6.11 had not yet seen a successful retest. The stock did close in the lower half of the week's trading range, suggesting further downside below last week's low at 6.59 will be seen this week. Nonetheless, in spite of the strong drop in the indexes on Friday, the stock stood up well, having just slightly broken one minor to perhaps decent intra-week support at 6.71 but then generating enough buying to close the stock 29 points higher than the low of the week and only 7 points below the mid-point of the week's trading range, suggesting that even though further downside to the 6.50-6.53 level could be seen this week, there is enough buying interest to suggest the stock might survive the onslaught of selling being seen in the indexes. The stock did gap down on Friday between 6.97 and 6.91 and as such the 6.91 level is considered resistance, especially considering that there is a previous but minor intra-week resistance at that level as well. Additional resistance is found at 7.18 that if broken would give the bulls an edge. Probabilities slightly favor the bears this week but likely on a minimal basis and only for a further drop down to 6.50-6.53. Stop loss should remain at 6.43 because if broken, the probabilities of the stock heading down to the $5 level will increase, in spite of the decent support at the double low at 6.10/6.11. MMM made a new all-time daily closing high on Monday, having broken above the previous daily closing high at 171.42 made on June 8th. The new high was confirmed with 3 subsequent daily closing highs above that level but then giving a failure signal on Friday when the stock closed at 169.12. By the same token, the bears were unable to support that failure on the weekly chart since the stock ended up making a new all-time weekly closing high above the previous one seen the week before. Nonetheless, the stock closed near the lows of the week, suggesting further downside below last week's low at 168.40 and should that happen, the probabilities of a spike high top to this recent uptrend will increase. A weekly close next Friday below 168.65 would give a failure signal on the weekly closing chart and a close next Friday below 165.01 would generate a strong sell signal that would offer a $155 objective. Short-term pivotal intra-week support is found at 166.47, which if broken would offer a drop down to 164.97. Important and mid-term pivotal support is found at 163.17 that if broken would suggest a drop down to the 200-day MA, currently at 157.10. The stock gapped down on Friday between 172.46 and 171.54 and as such resistance is found between 171.54 and the previous high prior to that at 171.93. Closure of the gap at this time would be considered a positive. An additional gap on Monday, especially if the 166.47 level is broken, would be a decent negative. Probabilities slightly favor the bears. MT generated a negative reversal week, having gone above the previous week's high but then closing below the previous week's low. The stock closed on the lows of the week and further downside below last week's low at 4.48 is expected to be seen this week. Important and pivotal intra-week support is found at 4.25 that if broken would suggest a drop down to at least 3.71/3.88 or perhaps as low as 3.29 with an outside chance of the all-time low at 2.93 being tested. As such, stop losses should be placed at 4.15. Minor but possibly short-term pivotal resistance is found at 4.87 which also represents the 200-day MA, currently at 4.85. Stronger and more pivotal resistance is found at 5.44 that if broken would give the bulls back the edge they have had for the past 4 months. The stock is facing a pivotal week as the probabilities are high that the stock will get below 4.48 and test the 4.25 level. Probabilities slightly favor the bears but not in a way that would suggest the bears are ready to take control again.
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1) FCEL - Averaged long at 2.2275 (4 mentions). No stop loss at present. Stock closed on Friday at .433 (new price 5.20).
2) ENG - Averaged long at 1.92 (3 mentions). No stop loss at present. Stock closed on Friday at 1.18.
3) NFLX - Liquidated at 93.12. Purchased at 94.36. Loss on the trade of $124 per 100 shares plus commissions.
4) KNDI - Purchased at 6.63. Stop loss at 6.43. Stock closed on Friday at 6.85.
5) ARNA - Averaged long at 3.725 (4 mentions). No stop loss at present. Stock closed on Friday at 1.81.
6) MMM - Shorted at 172.25. Stop loss now at 174.35. Stock closed on Friday at 169.12.
7) MT - Purchased at 5.03. Stop loss at 4.15. Stock closed on Friday at 4.53.
8) FSLR - Liquidated at 45.98. Averaged long at 53.285. Loss on the trade of $1461 per 100 shares (2 mentions) plus commissions.
9) FSLR - Averaged long at 47.945 (2 mentions). No stop loss at present. Stock closed on Friday at 46.02.
10) AAPL - Shorted at 96.82. Averaged short at 97.81 (2 mentions). Stop loss now at 96.99. Stock closed on Friday at 93.40.
11) USG - Liquidated at 26.89. Averaged long at 26.876. Profit on the trade of $4 per 100 shares (3 mentions) minus commissions.
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Encyclopedia of Chart Patterns. A must have for chart aficionados! |
The opinions and commentaries by Mr. De Vito are not a recommendation to buy or sell, but rather
a charting guideline, based on his own knowledge and experience, regarding the stocks he is following or
that are brought to him by others. Mr. De Vito does not presently offer a track record of his trading experiences.
No inference of success and/or failure should be assumed. The
information enclosed above, regarding his background, length of trading, and experience, is correct
but is not meant to suggest, state, or infer any future success in trading, based on his opinions. The information herewith included should only be used by investors who are aware of the risk inherent in securities trading. Mr. De Vito accepts no liability whatsoever for any loss arising from any use of the information and/or comments he supplies. |
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