Week Ahead: The Bulls Are Getting Stronger

The Bulls Are Getting Stronger:

Stocks ended the week nicely higher as optimism spread regarding the US-China trade deal and investors digested the latest round of earnings data. At this point, the rhetoric from both sides suggests a trade deal will get done and that is a “good” sign for the market. On the economic front, the big miss came from retail sales but that is bullish for stocks because it reduces pressure on the Fed to raise rates anytime soon. Remember, the market loves easy money so any weak data only furthers that cause. So, in some perverse way, we are back in that awkward phase where negative economic data is good for stocks. Technically, it is encouraging to see the Dow and S&P 500 both close above their respective 200 DMA lines which have served as near-term resistance. Meanwhile, the Nasdaq and the Russell 2000 both close near/below their respective 200 DMA lines. For now, the market is getting extended to the upside and due to pullback.  

Monday-Wednesday’s Action:

Stocks were quiet on Monday as investors digested the recent rally below resistance (200 DMA line). On Tuesday, stocks soared after news broke that a tentative border security deal was reached and the government would not shut down on Feb 15. The deal would not completely fund the wall but it would be enough to at least move the needle and get something built. That was considered a big win for Wall Street as it removed a lot of uncertainty regarding the potential impact of another government shutdown and the economic ramifications. On Wednesday, stocks rallied again on optimism that the trade war with China would be resolved.

Thursday & Friday Action:

Stocks ended mixed to mostly lower on Thursday after retail sales plunged in December 2018. The report was released late because of the government shutdown. The Commerce Department said retail sales slid by -1.2% in December which was the largest monthly drop in ten years. Stocks rallied nicely on Friday as optimism spread regarding a U.S.-China trade deal. In other news, energy prices rallied sharply as oil and gasoline prices rallied after a big sell-off a few months ago.

Market Outlook: Bulls Are Back In Control

The market has turned around after the Fed reversed its stance and moved back into the easy money camp. Near-term resistance 2018’s high while near-term support is the 50 DMA line and then 2018’s low. As always, keep your losses small and never argue with the tape. Do you know the most under-valued stocks in the market? Our members do? Take a FREE TRIAL – CheapBargainStocks.com

Week Ahead: Stocks Fall After Hitting Resistance

Stock Fall After Hitting Resistance:

Stocks ended the week mixed to mostly lower as the market fell after hitting resistance (200 DMA line). At this point, it is perfectly normal to see the market pullback to digest its recent rally. On a relative basis, the Dow is trading near its 200 DMA line and is outperforming its peers. Meanwhile, the S&P 500, Nasdaq Composite, Nasdaq 100, and small-cap Russell 2000 are all below their respective 200 DMA lines. For now, the 200 DMA line is serving as important near-term resistance while the 50 DMA line is near-term support. Furthermore, until either level is taken out, I have to expect this sloppy action to continue. The bulls want to see the market get – and stay – above its 200 DMA while the bears want to see it break below its 50 DMA. If it breaks above its 200, the next important level of resistance to watch will be 2018’s high. Conversely, if it breaks below its 50 DMA line, then the next important level of support to watch is December 2018’s low. For now, patience is king as we are still digesting earnings and the latest round of economic data. 

Monday-Wednesday’s Action:

Stocks edged higher on Monday as investors waited for another busy week of earnings to be released. After the close, Alphabet, Gilead Sciences, Seagate Technology, and Beazer Homes were some of the companies to report earnings. In other news, Senators Charles Schumer and Bernie Sanders are proposing a law that would put limit the amount of shares a corporation could buy back at a given time. On Tuesday, the market rallied as investors digested the latest round of earnings data and waited for President Trump’s State of the Union address. On Wednesday stocks pulled back as the major indices flirted with near term resistance near the 200 DMA line. Disney, Snap, and Plantronics were some of the stocks that rallied after reporting earnings. 

Thursday & Friday Action:

On Thursday, stocks fell hard after the major indices slammed into resistance (200 DMA line) on Wednesday. At one point, the Dow fell over 300 points after President Trump said he will not meet with Chinese President Xi before the trade deadline. In other news, BB&T bought SunTrust in the country’s largest bank deal since the 2008 financial crisis. Stocks slid on Friday as investors digested the recent volatility.

Market Outlook: Watch Resistance

The market has turned around after the Fed reversed its stance and moved back into the easy money camp. Near-term resistance is the 200 DMA line for the major indices and then 2018’s high. Separately, near-term support is the 50 DMA line and then 2018’s low. As always, keep your losses small and never argue with the tape.

FLS Setups Review: Stocks Climb Ahead for a Fourth Straight Week

Hi, I’m Andy! I’m a freelance writer and restaurant manager, and I have also been following ChartYourTrade.com since the day it launched. This post is a review of the performance of the 10 Elite Stock Setups that Adam sent to his Advanced Stock Reports subscribers on Saturday, January 12, 2019. Each setup comes complete with annotated charts highlighting the advanced entry point and support level(s), as well as all of the necessary fundamental information.

One of the reasons that I struggled to find success in the market was that I always tried to take on more than I could reasonably handle. I used to commit myself to researching dozens and dozens of stocks and tracking their daily movements, but I would always burn out after a few months and fail to keep up the pace that I set for myself.

It wasn’t until I found Adam’s weekend newsletter that I was able to see the power of a strategy that leaves room for life to get in the way. And life definitely got in the way for me this week, as I didn’t have time to check on the market even once during the week.

Thanks to Adam’s insight and my calm Saturday mornings, I am able to get myself completely caught up and refocused over the weekend. And with seven of the ten stocks from last weekend’s newsletter breaking through their entry points, I can see that the market is starting to command some more attention.

The General Market

In order to properly evaluate what each of our ten elite stock setups did this week, we need to look at them with the context of the general market fresh in our minds.

After a slow start on Monday, the market came to life on Tuesday as it crossed above its 50-day moving average line. It then continued higher throughout the rest of the week, finishing well above the 50-day moving average but still below its declining 200-day moving average.

We have seen a very strong move up from the low that was put in during the week of Christmas, but the market still has some work to do in order to convince us that the bear market is officially over. Regardless of where we are heading, a pullback is certainly in order to give this market a chance to catch its breath.

Juniper Networks – Triggered

With its 50-day moving average holding above its 200-day moving average, JNPR was already in a better position than most stocks coming into the week. After struggling on Monday, the stock retook that 50-day line on Tuesday. It then found support there on Wednesday and Thursday before moving higher on Friday.

That Friday move was strong enough to push the stock above Adam’s entry point, but it was not able to hold above that number. It did hold above its 50-day line though, and JNPR looks to be a very strong stock moving forward.

Citrix Systems, Inc. – Did Not Trigger

We have seen a ton of stocks lately that are demonstrating strength without quite getting to the entry points that Adam identifies for them. CTXS was one of those stocks this week.

The stock gave up its 50-day and 200-day moving averages on Monday, but it was able to quickly recover and shoot back above those lines on Tuesday. It then continued higher on Thursday and Friday and closed near the top of its range for the week.

Walt Disney Co. – Did Not Trigger

DIS started out the week with a down day, just like we saw from most of our elite stock setups this week. However, this stock was unable to respond with a bounce-back day on Tuesday. It actually lost most ground that day, and then stumbled again on Wednesday.

Rally attempts on Thursday and Friday were not successful enough for DIS to close above its 50-day moving average line, which was a major disappointment considering how strong the stock had looked coming into the week.

McDonalds Corp. – Triggered

MCD started off the week just like DIS with three straight down days that saw it falling below its 50-day moving average line. But the big difference is that this stock was able to post strong recovery days on Thursday and Friday where it retook that 50-day moving average and closed right at Adam’s entry point.

American Tower Corp. – Triggered

AMT was having none of the negativity of the general market on Monday. It was one of the few stocks that bucked the trend and posted a positive day. Then, building on that strength, it continued to move higher throughout the rest of the week.

During its run of five straight positive days this week, AMT was able to pull its 50-day moving average higher while breaking through Adam’s entry point on Tuesday and then continuing higher from there.

PayPal Holdings, Inc. – Triggered

There are stocks that trigger Adam’s entry points with dominant strength like we saw from AMT, and then there are stocks that struggle with those key numbers. PYPL was one of the latter stocks this week as it bounced above and below Adam’s entry point.

After starting the week with a bit of a slump to match the general market, PYPL jumped higher on Tuesday and triggered Adam’s entry point. It then fell back below that entry point on Wednesday and stayed there on Thursday before attempting to retake the entry point line on Friday and ultimately closing just short of it.

Shopify, Inc. – Triggered

SHOP was yet another stock that stumbled out of the gate on Monday and then posted a big up day on Tuesday. After bouncing off of its 200-day moving average during Monday’s trading, SHOP was able to break through Adam’s entry point during Tuesday’s move.

The stock showed even more strength later in the week as it climbed again on Wednesday, paused briefly on Thursday, and then moved even higher on Friday.

T-Mobile US, Inc. – Did Not Trigger

With four straight losing sessions to start the week, TMUS was one of the weakest stocks on our list this week. After fighting to hold its 50-day moving average through the early part of the week, it fell below that line during Thursday’s trading.

The stock was able to recover with a positive day that took it back above its 50-day moving average on Friday, but it still closed in the bottom half of that day’s range.

Xilinx, Inc. – Triggered

The leading stocks that make it onto Adam’s FLS Newsletter each week tend to move a bit more dramatically than the general market, but XLNX was not one of those this week. It recorded five days of tight trading that saw the stock push higher through his entry point by the end of the week.

After moving lower with the overall market on Monday, the stock moved higher on Tuesday and briefly broke through Adam’s entry point. It then fell back a bit on Wednesday before recovering and moving higher again on Thursday and Friday.

Nike Inc. – Triggered

I would never trade based on my personal shopping preferences, but I was very excited to see that NKE was going to be on our list of Elite Stock Setups heading into the week where their newest shoes would be hitting the court in the NBA.

The market obviously likes those new laceless sneakers as much as I do, because the stock posted huge gains on Tuesday, Thursday, and Friday that took it well above Adam’s entry point. It also looks like we could be seeing the stock’s 50-day line cross above its 200-day line if NKE continues to show strength in the coming weeks.

This was another strong week for the general market, and the Elite Stock Setups that Adam identified for us showed a tremendous amount of strength. If you would like to see which stocks made the list for us to track in the coming week, make sure you subscribe to his Find Leading Stocks newsletter where he maps out his entire playbook for making money in the market.

Week Ahead: Stocks Break Above Resistance As Earnings Begin

Stocks Break Above Resistance As Earnings Begin:

Stocks rallied for a fourth straight week as earnings season officially begin and positive news was released between China and the U.S. The market has regained more than half its losses over the last few weeks and broke above near term resistance (50 DMA line). The next level of resistance to watch is the longer term declining 200 DMA line. In the short-term the market is very extended to the upside and way overdue to pullback. More time is needed for us to know if the bear market is indeed over, or, if this is just a very strong bear market rally. The two big forces which triggered this very strong rally are the Plunge Protection Team and The Federal Reserve shifting its stance and moving back into the dovish/easy money camp. Remember, bear market rallies look great and make you feel like the selling is over and everything is back on track before sellers reemerge and send stocks lower. If the bear market is indeed over then this will be the shortest bear market in history and we will have a lot more chances to buy in the near future. 

Monday-Wednesday’s Action:

Stocks fell on Monday after China reported weaker than expected economic data and investors waited for a busy week of earnings. Stocks rallied nicely on Tuesday after the first wave of big banks reported earnings. JPMorgan rallied even though the company missed fourth quarter profit estimates as bond trading slumped. In other news, Wells Fargo fell after the company reported earnings. Overseas, the U.K. voted against BREXIT which was largely expected and did not spook investors. Stocks rallied on Wednesday after several big banks reported earnings. Goldman Sachs was the big winner of the day and rallied sharply after the bank reported earnings. In other news, Sears reached a $5 billion deal with its Chairman, Eddie Lambert, to keep 400 stores open. The market opened higher but ended in the lower half of its range which may be a near term sign of fatigue as it flirts with important resistance (50 DMA line).

Thursday & Friday Action:
Stocks rallied on Thursday after rumor spread that the U.S. and China were considering taking action to reduce trade tensions. After the close, Netflix, the first FAANG stock to report earnings, fell after lowering guidance for 2019. Netflix joined Apple, Macys, and several other well-known companies that slashed guidance for 2019. Stocks rallied hard on Friday after China said it has a solution to reduce the U.S. trade imbalance to zero by 2024. The popular financial media outlets reported that China had offered a six-year increase in U.S. imports designed to reduce the annual U.S. trade deficit to zero by 2024.

Market Outlook: Market Rally Continues 
The bulls are doing their best to rescue the market from falling any further. The market was extremely oversold and is currently bouncing to help work off that oversold condition. Resistance is the 200 DMA line for the major indices. After that, the next big level of resistance to watch is 2018’s high. Meanwhile, support is December 2018’s low. As always, keep your losses small and never argue with the tape.

This Market is Starting to Build Momentum

Hi, I’m Andy! I’m a freelance writer and restaurant manager, and I have also been following ChartYourTrade.com since the day it launched. This post is a review of the performance of the 10 Elite Stock Setups that Adam sent to his Advanced Stock Reports subscribers on Saturday, January 5, 2019. Each setup comes complete with annotated charts highlighting the advanced entry point and support level(s), as well as all of the necessary fundamental information.

Despite the fact that the government has been closed for business on account of a dispute over a wall, the market has been open and active so far in 2019. Like a bulldozer excavating the ground where a foundation will be laid, we could be seeing the signs of uptrend starting to form. 

We saw five of our elite stock setups shoot up through Adam’s entry points this week, and the fact that this number is increasing is a sign that the market is picking up steam as we make our way into the new year.

The General Market

In order to properly evaluate what each of our ten elite stock setups did this week, we need to look at them with the context of the general market fresh in our minds.

After closing last Friday with a dramatic day to the upside, the market continued higher with more positive returns in each of the first four days this week.

And despite posting a small loss on Friday, this was a very positive week for the market that left it in a position to reclaim its 50-day moving average if it is able to continue higher next week.

Crocs, Inc. – Triggered

After closing last week with a positive day that wasn’t quite as positive as the general market, CROX started off this week on the right food by shooting up through Adam’s entry point on Monday. And while it was not able to hold the entry point on Monday, it continued higher and closed above that level on Tuesday.

After moving even higher on Wednesday, the stock pulled back just a bit on Thursday and Friday. It is still sitting above the entry point and its 50-day moving average is pulling away from its 200-day moving average.

Yum! Brands Inc. – Did Not Trigger

YUM was one of the closest stocks to the entry point Adam identified for us last weekend, but after starting out the week with three consecutive down days it was unable to get itself past that entry point.

The stock came close to breaking through the entry point on Thursday, but then things turned south on Friday and it closed the week below both Adam’s entry point and its 50-day moving average.

Merck & Co., Inc. – Did Not Trigger

While the overall trend of the market was positive this week, MRK was moving in the opposite direction that started out with a negative start to the week on Monday.

After a slight rebound on Tuesday, down days on Wednesday and Thursday took the stock down below its 50-day moving average, and it was unable to recover that line during a slight rebound on Friday. It currently sits below Adam’s entry point and its 50-day moving average, but is still well above its 200-day moving average.

Eli Lilly & Co. – Triggered

We talked last week about how LLY bounced off of its 50-day moving average on Friday, and despite opening the week down near its 50-day moving average, the stock moved higher on Monday before breaking up through Adam’s entry point on Tuesday.

That entry point was the story of the week for LLY, which climbed a bit higher on Wednesday before closing just below the entry point after giving back some ground on Thursday. Then a slight bounce on Friday brought the stock back above Adam’s entry point to close the week.

Foot Locker, Inc. – Triggered

I have a completely hopeless addiction to buying Air Jordans, and I buy all of them through the Foot Locker app on my phone, so I am always going to be rooting for FL to move higher.

Rooting for FL was a lot of fun on Monday as it shot up through Adam’s entry point. But after moving even higher on Tuesday, it gave back a significant portion of those gains on Wednesday and Thursday. But then it found more strength on Friday and closed the week up above the entry point.

Chegg, Inc. – Triggered

Another stock that is off to a very strong start to the year is CHGG, which kicked off the week by rocketing up through Adam’s entry point on Monday. It then continued higher on Tuesday, Wednesday, and Thursday before giving back just a small portion of those gains on Friday.

In addition to moving up through Adam’s entry point this week, CHGG also saw its 50-day moving average finally start to move above its 200-day moving average after spending the past few weeks moving in sync together.

Barnes & Noble, Inc. – Did Not Trigger

BKS was the roller coaster ride out of our elite stock setups this week. After starting out the week with a sour note on Monday, Tuesday’s positive action took the stock right up to Adam’s entry point.

Things got a little rocky on Wednesday as CHGG gave back some of its gains from the week. Then things got wild on Thursday as the stock gapped down and closed below its 50-day moving average. It attempted to rebound on Friday’s open but ended up closing down near the lows of the week.

21st Century Fox Inc. – Did Not Trigger

FOX was another stock that closed out last week on a positive note and was looking to build on that strength coming into this week. And after opening the week back below its 50-day moving average on Monday, buyers showed up and carried the stock back higher.

More buyers came in throughout the rest of the week, and FOX logged four straight positive days before giving a small portion of those gains back on Friday. It wasn’t able to get up near Adam’s entry point, but the stock is definitely looking strong heading into next week.

Procter & Gamble Co. – Did Not Trigger

Not only did PG fail to challenge Adam’s entry point, it actually lost its 50-day moving average twice during the week. After opening higher on Monday, it fell below the 50-day line but was able to recover and close back above it.

However, losing the 50-day line again on Wednesday was a blow that PG was not able to recover from. The stock did post positive days on Thursday and Friday, but it is still sitting just below that critical line.

Wayfair Inc. – Triggered

W opened the week by moving up quickly through Adam’s entry point and it’s 50-day moving average. The stock posted four straight positive days before pulling back to that 50-day line on Friday.

Moving forward, it will be interesting to see if this week’s strength will be enough to propel W higher. If that is the case, it would be a very positive sign for the stock to get both its price and its 50-day moving average back above its 200-day moving average.

With half of our elite stock setups triggering Adam’s entry points, this was a very positive week for the market. If that strength continues into next week, I suspect that we will be looking to start taking some positions on the long side.

If you would like to know exactly which positions Adam is taking in his model portfolio, I highly suggest subscribing to his Find Leading Stocks Newsletter where he maps out his playbook for making money in the market.

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