Wednesday, January 30, 2019

AT&T [$T] 30 January 2019


Always beware of a stock that's down when the overall market is up substantially.  

It's often a telltale sign.  

Both the S&P500 and the DJIA were both up more than 1.5% while $T was down more than 4%.

The chart shows a long term bullish price pattern that failed.  It's not likely to repair itself.

Friday, January 18, 2019

AAPL Update As of 18 January 2019

AAPL reports on 29 January 2019.

Things don't look good for the stock right now.

The broader stock market has been on a tear since Christmas, but Apple's stock can barely get up off the mat.  $140 and TAOST Low Power Zone look like good support, but nothing can hold up a market determined to collapse.


One of my favorite trading strategies historically was to buy stocks that went up when the overall market went down.  It stands to reason that 1 should sell stocks that can't go up alongside the broader market... especially when the stock is supposed to be a market leader.

I say all that to say that it appears to me that Apple is in trouble.

Only the future will tell.

NFLX Responds To Support & Resistance Principles



Netflix put in a nice sell signal against resistance (including TAOST Magnet Zone) on the 5 minute chart a little while ago.

The principles work...

Wednesday, January 16, 2019

SPX, DJIA & GS Update - 16 January 2019

S&P 500




DJIA

It's not quite time to go all "horns up" folks.

To be sure, the bounce has been "strong like bull."  But, as the charts above show, structurally, the broader stock indices aren't out of the woods just yet.

Both the SPX and the DJIA are only just challenging TAOST Magnet Zone™ (TMZ) from below.  Price is already stretched to the upside, so beware of getting long here.  In fact, don't be surprised if price rolls over and traces out lower prices... in fairly short order.

GS

The Goldman Sachs daily chart shows that today's 10% move higher only pushed price toward significant resistance above in TMZ and a separate long running resistance zone.

The selloff may indeed be over... but make sure price validates such a thought by closing above these areas of resistance.

Tuesday, January 15, 2019

Big Companies Reporting Tuesday 14 January 2019 -- JPM, WFC, DAL and UAL

JPM -- JP Morgan has work to do to get change from its negative structure on the daily chart.




WFC -- The red horizontal line was support... and is now resistance.



DAL -- Like many other large caps (including other airlines) Delta Air took a steep nosedive and is likely to have a hard time moving back to the upside.



UAL -- United Continental looks like it has an important support test coming up.

Monday, January 14, 2019

What Does The C Chart Say After Today's Report

Citigroup reported before the market's open this morning and rose a bit over 4% over the course of the day.  While many market commentators breathed a sigh of relief, pay attention to the $60 area... It should be pretty good resistance.


Saturday, January 12, 2019

Analyst Says GE Could Be Worth Only $5...

GE Weekly Chart

TAOST Select Data


Short Interest

I would expect short interest to be much higher as a percentage of the float given the stock's structure... But it makes sense... the stock has bounced from its $6.66 52 week low over the last 6 weeks.  High short interest is like jet fuel to the upside... without it I feel even better about the short idea.

How To Trade It

GE Daily

Short The Stock

Of course you could short the stock on a good signal to the downside... Perhaps wait until price breaks the low of the preceding week's candle and short the stock outright.

Trade The Options

I think the better idea is to buy January 2020 Puts (options contracts that climb in value if the underlying stock falls) when the chart gives a good signal.

As the chart above (courtesy of Yahoo Finance) shows, you could purchase a single $3 strike contract for $8.00.
Yes... you read that right... on Friday afternoon, $3 strike January 2020 put options could have been purchased for $.08 each (a contract represents 100 shares of the underlying).
The closer $5 strike puts could have been had for $27 per contract.
My point here is that if you believe the analyst (and agree with the chart), $GE could certainly see $5 or below.  This is a relatively low risk way to get exposure to that idea.
Full disclosure... In my mind, $GE still has a good business... lots of them in fact.  I have a really hard time imagining the stock falling through $5.... 
But that's gut feeling.
One of my rules is "Trade what you see... not what you think."
I suggest you do the same.

Friday, January 11, 2019

Day Trading The ES Friday 11 January 2019

Just when shorts thought it was safe to come back out...


In The News

  • GM +7% after u/g its outlook
  • NFLX +4% after analyst upgrades... the company posts next week
  • GE -2.5% after an analyst cut his price from $10 to $7... Ended unched on the day...
  • Caesars (CZR) -- +9% on news that billionaire investor Carl Icahn is building a stake in the casino company
  • SBUX - down .7% after GS d/g on China concerns
  • Another sign of the times... PVH +7% after news Calvin Klein to close its flagship store in midtown Manhattan. 

How The ES Traded

Pre-Open

TBZ looked set to hold price up as we came into the US cash market open.  We broke through the bottom of the zone, but only a bit...




After 11 AM


My trading room closes at 11am... 



After Close


The arrows show areas where TAOST Power Zones lent a hand.  Use them.




Thursday, January 10, 2019

Day Trading The ES Thursday 10 January 2018

In The News


  • Fed Chairman Powell said he's very worried about the growing amount of US debt... He should be.
  • Trump said he will probably invoke National Emergency to get border wall
  • Retail shares got smoked even though consumer spending strong... Holiday sales or lack thereof) hammered M down 19%
  • Jeffrey Vinik reopening hedge fund he shuttered in 2013... says current bull could last another 10 years... That could definitely mean we've seen a near term top.

How The ES Traded

Pre-Open



Post TAOST Trading Session 

TLPZ was resistance over night and most of the morning, but it forced buyers to really push  to get through.


EOD  

Multiple places to trade against TAOST Power Zones today.  While TBZ failed to hold as resistance or support for most of the day, price was forced to push hard to get through it in both directions.





A Favorite Pattern To Stalk

This is 1 of my favorite patterns top stalk.

It was +4% yesterday, so don't jump right in... but get ready by stalking a good pullback entry.

Wednesday, January 9, 2019

TAOST Power Zones Do Their Job


TAOST Intraday Power Zones worked at points 1, 2 and 3 today.  That's not an unusual occurence, but I thought I'd mention it here today.

If you have discipline and patience [TAOST EC], you can use TAOST Power Zones to make money intraday.

Simple.

Watch This For An Indication It's OK To Buy Again

The Dow Transports Index is often used as a proxy for market strength.
Right now the index structure suggests the worst may not be over just yet.  Watch it closely for a clue as to when it makes sense to wade back into the shark filled market waters.  In my mind the index has to get comfortably (distance and time) above 10,000 before it makes sense to say things may have stabilized.

That could happen tomorrow... But I wouldn't bet on it.

Thursday, January 3, 2019

An Apple A Day? 4 January 2018

$AAPL took it on the chin today following their lowered guidance after the close yesterday.  

I had quite a few emails and texts asking, "What now?"

There's no easy answer to that question... though I will say that price fell to a pretty interesting level today... and held.

Watch this $140 area for real (if temporary) support.  The fact that it's also right at the top of TAOST Low Power Zone [TLPZ] doesn't hurt.

Weekly

AAPL Weekly Chart

Daily
AAPL Daily Chart