Wednesday, October 18, 2017

Is IBM Finally Making A Comeback?

IBM Stock Chart Analysis

IBM has not had the best decade, and recently it was heading to retest yearly lows as the majority of large caps were making all time highs. However, with recent earnings IBM has reacted with pure strength, making a rare +9% move.

The way the chart is setup, and the strength shown by the RSI (currently overbought), this stock is likely to climb higher in the upcoming months. The first target would be the gap fill highlighted in the chart above which closes at $168. If this trade goes bad, at least there is a very nice quarterly dividend to help you "average down".

This might be the quarter were things finally start turning around for IBM, at the very least until next earnings date.

Saturday, September 2, 2017

Exploiting Your Edge In The Market

As a purely technical trader, I have to constantly ask my self "Do I have honestly have an edge"? Assuming the answer is yes, the next step I take is to breakdown my edge in as much detail as possible, and trade strictly based on it. This requires the utmost in discipline and constant back checking of my edge. Requiring I review my trades making sure I am continually profitable.

I do not like to disclose the edge I have, and rather keep it proprietary (for fear it will no longer be profitable if public). I do, however, like to give out some hints on how to create a profitable edge. The key that many miss when it comes to their edge is it must be greater than the fees you pay to trade. One interesting consideration many don't take into account is , if your edge is break even, you will end up losing, as the fees it cost to trade will make you negative (possibly by a large margin). However if you are breakeven including those fees, there is another way to make money.

That way is through bonuses of opening an account in the form of a stock trading bonus, or a forex trading bonus. This is much like the way online poker players make money. They are often are charged a rake (i.e. stock trading fees), were they are break-even poker players (including house/rake fees). Where they make their money is made through the bonuses of paying so much rake.

Monday, July 3, 2017

The Stock To Watch: iRobot

iRBT technical analysis stock chart

On our last stock to watch, I covered Nvidia($NVDA), where I wrote on any market pull back this stock is a buy. Six month later, it is up 40%, the only downside to our coverage was we were hoping for more of a pullback, which did not occur (the article was posted at Nvidia's lows).

Fortunately another stock has fit my proprietary trading algorithm, as you may of guessed from the title it is $IRBT (iRobot Corporation). It is rare in the last few years that a stock would fit my proprietary trading algorithm so perfectly as $IRBT. At the moment the stock is currently pulling back.

Once the stock stops pulling back, it will receive a significant bounce. For me to safely purchase this stock I would like to see it around the $60-65 price range. As seen with my call on $NVDA, I don't always nail the buy price of where to buy, but one thing is for sure, once this stock stops bleeding it will bounce hard.