Tag "trading setups"

Is Netflix Stock (NFLX) Ready To Explode Again?

Netflix stock has long been a favorite with option traders due to its high stock price, high implied volatility and explosive stock moves. But following the severe selloff in mid-October, Netflix (NFLX) has been very subdued. Since October 23rd, Netflix stock as traded in a very tight range between $374.60 and $395.52. That’s only a range of 5.5% in the last month for a stock that has a history of moving

Is Natural Gas Setting Up For A Tradable Rally?

Natural Gas has gotten plenty of attention with volatile moves during the latest polar vortex. Prices are down 12% this week as of this writing. Is the rally over? Or was the recent move higher the first leg of a larger move?  Let’s dig in. Looking into the chart, a few things stand out. First, there is a major confluence of support around the 3.90-3.95 area. This is the most

Traders: Did The Euro Just Bottom?

The Euro has been hit hard and negative sentiment is reaching an extreme. A couple weeks ago we posted how PRICE = TIME and the Euro hit the target exactly.  That being said, the FORM and PROPORTION just didn’t look correct from the perspective of “is this a tradable bottom.” So, from 1.2500 we rallied in 3 waves and, after that, the picture became clear that we needed “one more wave”

Market Masters: Learn To Trade Like A Pro

By Mike Bellafiore What is one of the biggest differences between a Consistently Profitable Trader and lesser traders?  The Consistently Profitable Trader doesn’t care if he is right. In One Good Trade I urged new and developing traders to focus on the process of their trades and not the result.  I wrote that if a trader followed 7 Fundamentals for a trade then he/she had made One Good Trade.  This

Trading The Trend: Keep It Simple

68 Wall Street – those were the days. If you know your history of the US stock market, on May 17, 1792, the stock market as we know it today was initiated with 5 securities traded amongst 24 stockbrokers and merchants. This initial meeting all started under a Buttonwood tree known today as the Buttonwood agreement. Early years of trading didn’t require early morning wake ups. You have to wonder

Weekly Chart Scan: Using Discipline To Find Market Leaders

The story of a leadership stock doesn’t begin or end with a story of its fundamental profile or how it broke out from a constructive base or continuation pattern. The story begins at how the stock acted at key moving averages and / or price support during pullbacks, particularly as the general market is attempting to bottom. If the technical foundation of the price structure is unsound, the probability of

Twitter Upgraded To Overweight, Stock Battles Resistance

Earlier today, JP Morgan analyst Doug Anmuth upgraded Twitter (TWTR) to an overweight rating, raising his price target to $64/share. This was enough to buoy the stock price amidst a sea of red in the Tech sector. But perhaps even more important than the Twitter upgrade this morning is the developing technical setup on the TWTR stock chart. The move higher this morning saw the stock fall short of eclipsing a critical resistance level

Oil Heading Lower? The USO Short Trading Setup

Crude Oil prices have broken lower this morning and it appears that even lower prices are in the cards over the coming days. If this development continues, it will mean two things: 1) less pain at the pump and 2) an opportunity to get short with well defined risk-reward. One vehicle that I’ve been tracking is the United States Oil Fund (USO), which is an ETF that follows Oil price movements.

Why EWZ iShares Brazil Is Setting Up For Higher Prices

Yes I am aware that EWZ (iShares MSCI Brazil ETF) is up over 19% YTD and more than 39% from the low of 38 seen in February. However, the price action yesterday and today are significant on multiple time frames and may be indicating much more upside for EWZ. Looking at the daily chart over the past 15 months, you can see that EWZ has been challenging resistance around 52 (52.01