Tag "trading setups"

Why Best Buy Stock (BBY) May Be Running Out Of Steam

Best Buy stock (BBY) has been on an amazing run rallying over 65% since the start of 2014. Is it time to take to a breather? The evidence is pretty convincing that it is. Here’s a list of indicators and occurrences that are concerning me. Use the Best Buy stock chart below for reference. Price is testing resistance from the mid 2000’s high Simultaneously, relative strength is testing declining trend

Is The Russell 2000 ETF (IWM) Poised To Roll Over?

On the stock exchanges in the United States and globally, many of the equity indices we monitor are displaying potential topping patterns and signals. Some have reached significant upward targets and resistance levels. Others appear ready to create lower highs this month. Among the U.S stock market indices, the Russell 2000 (RUT) offers one of the clearest examples of an index that may be on the verge of a major

Biotech Sector (IBB): The Anatomy Of A “Blow Off” Top

Recent price action in the Biotech Sector ETF (IBB) and select biotech stocks has attracted a lot of attention and with good reason: it is not often that we see such a powerful and sustained move spanning multiple years. Many articles have been written lately (including by yours truly) about the potential top in the Biotech sector and my intention is not to rehash any of those fundamental or technical

Why A Chipotle Stock Top May Be In the Works

The stock market has climbed back to (or near) all time highs with several stocks making new highs. However, one stock that is missing from that list is Chipotle (CMG). And this shouldn’t be a big surprise as I highlighted a potential Chipotle stock top in early February. At the time of that post, CMG was in the midst of a sharp decline. But since then, Chipotle’s stock has completed a typical

Will Gilead Sciences Stock (GILD) Take Biotech Higher?

Perhaps the two hottest themes in the markets right are the move in the US Dollar and what is going on in the Biotech sector. I have hit on the USD a few times, but let me take a shot at Biotech. More specifically, I want to highlight the chart of one of the largest holdings in the iShares Biotech Sector ETF (IBB) – Gilead Sciences (GILD). And although negative news

Top Trading Links: The Current State Of The Market

It was an amazing week in the markets. The market continues to punish the bad habits of Fed watchers and everyone who doesn’t follow price. The long dollar train is full of passengers, but Yellen suggests the Fed is more moderate and commodities are trading like the sellers are exhausted. Ironically, bad trading habits in biotech are being rewarded. Lastly, it’s worth remembering if you’re hitting it big, you’ve got

The Euro Stabilizes At Bottom Of Bear Channel

The Euro has been oversold for many weeks now. And that goes to show you how oversold can become more oversold for traders trying to pick bottoms.  But there’s reason to believe that a rally may getting started here. Looking at the popular forex pair involving the Euro, the EURUSD (or how many Dollars buy one Euro), we can see that the Euro is stabilizing after testing support at the

Yahoo Stock (YHOO) Consolidating At Key Support Level

For the better part of 2015, Yahoo, Inc (YHOO) shares have based just above the 200 day moving average (MA) between 42 and 45. Now Yahoo stock is challenging the top of it’s base. So it’s a good time to dig into some charts and highlight some key support and resistance levels for Yahoo stock. Yahoo (YHOO) Daily Stock Chart – 2015 Consolidation? On the most recent low, momentum started to diverge

Chart Focus: Oil Services ETF (OIH) At Critical Price Support

The Oil Services ETF (OIH) has fallen in lock-step with Crude Oil prices. And now that Crude Oil is back near its 52 week price lows, so it OIH. As I wrote about yesterday, I’m watching these two along with the forex pair USDCAD (US Dollar / Canadian Dollar) as I believe they will bottom as USDCAD tops at some point this year. But, its also important to note that understanding risk levels can

Brazilian ETF Deeply Oversold: A Short-Term Low For EWZ?

it’s no secret that the Brazilian economy, capital markets and political landscape are in disarray. And as expected, the most widely traded Brazilian ETF (EWZ) is one of the worst performing (non-leveraged) ETFs of the past six months. The Brazilian ETF has shed over 40% of its value, dropping nearly 12% in the last month alone. Given the dramatic move and the tendency for mean reversion in the markets, it