Saturday, October 8, 2016

Is Twitter Finished?

Twitter TWTR stock chart technical analysis

Twitter has been a favorite of mine since early May (prior to LinkedIn's buyout). These last two weeks, Twitter has had a very impressive run up on buyout rumors. However, those buy out rumors have faded and the stock has tanked over 30%. 

The buying strength shown due to buyout rumors is too strong to ignore (+35%) and buyers will be back. I don't have a specific buy price, but I do believe it will receive a significant bounce in the medium term (within 2 months).  Twitter is definitely not done.

Sunday, May 15, 2016

5 Stocks To Watch This Summer

In the list below I will list 5 stocks I think traders/investors could possibly make profit playing come this summer. Stocks are in no particular order:
  1. Amazon (AMZN): A leader in this very difficult market environment (which is quite rare the past two years). Just made new all times high thanks to blow out earnings. What's impressive is it's rebound from the nasty correction it had a few months ago.
  2. Apple (AAPL): Apple has had a rough time with earnings, its recently made new 2 year lows. However, if it can continue correcting down to the mid 70s (my technical buy point), I think it would be a great long term buy. As a bonus it pays a dividend!
  3. Tesla (TSLA): This stock is a retail investors favorite. Unfortunately Its a bit off from its all time highs. A few months ago it had one of the most incredible V-shaped bounce I have witnessed in a long time. If this continues to correct it may be a quality long term buy.
  4. Celator Pharmaceuticals  (CPXX): An impressive biotech company with an incredible strong stock chart (these are rare these days). If it pulls back strongly, it may be worth a buy. (Warning biotech stocks come with great risk).
  5. Twitter (TWTR): Badly beaten down stock, with an ugly chart. However, it's hard to fathom Twitter won't attempt some sort of come back. If one occurs I think retailers would bid this up.

Sunday, May 8, 2016

What to Expect From the Stock Market This Summer

NYSI Summation Index Chart Technical Analysis

Two months ago I posted about the bulls leading the Market higher, which indeed did occur. However, the bulls overextended themselves, thus the Market pulled back. Once the overbought conditions have been completely alleviated the Market will attempt to make new highs. As I will explain why this scenario is likely in the paragraph below.

 The Ratio Adjusted Summation Index is a great tool to measure the strength of a bull Market. The chart above is the Ratio Adjusted Summation Index ($NYSI). The $NYSI is calculated by adding the daily values of the McClellan Oscillator. Readings above 500 convey the message that stock market is in a bull Market and will continue to make higher highs. The Market has just had an extraordinary high reading compared to the the last few years. The chart above shows the $NYSI broke well past the 500 threshold. Staying above a 500 threshold in a very convincing manner promises the Market will make higher highs. Note how previously the 500 threshold acted as resistance causing the NYSI to pull back on the chart. The failed breakout hinted at a massive pullback, which then a few months later the Market ended up declining over 20%.