In February my respected fellow author Noah Kiedrowski recommended that you to take a look at The Walt Disney Company (NYSE:DIS) and supported his view with an extensive analysis of the company, which has quite a positive outlook and sound fundamentals. He has been covering Disney for some time on the Blog and I am sure his focused research could let you find quite useful data about the company.
I spotted an interesting long setup on the Disney chart recently, which confirms Noah’s February outlook and I am happy to share it with you in this post. Now you will have his background analysis augmented with my technical outlook for a 360⁰ view.
Chart: The Walt Disney Company Monthly: Finishing Triangular Consolidation
Chart courtesy of tradingview.com
After examining the long-term chart of this fantastic company, I understood why my colleague admires Disney so much. This stock is like other great companies that are moving all the way up with quite long consolidations. The previous one was observed from 1998 till 2009 with seesaw moves of the wide range between $13 and $44 marks. After it broke loose, the stock just rocketed to the sky-high level at the $122 in 2015 with just minor pullbacks. The RSI then has reached an extremely overbought level at the 88 mark. Continue reading "Disney Could Rally After A Long Pause"
Hello traders everywhere. After a Friday close of -2% for all three major indexes, the stock market has rallied today with gains of +1.5% for the DOW and S&P 500 respectfully, while the NASDAQ is posting a +2% gain on the day.
Of course, this move higher comes on a feeling that the trade war with China won't happen or that it won't be as bad as we first thought.
Treasury Secretary Steven Mnuchin said on Sunday he does not expect a trade war between the U.S. and China to take place and President Donald Trump himself said in a tweet Sunday: Continue reading "Stocks Rebound As Trade War Fears Fade"
In this post, I want to share a chart setup. This one has a bearish outlook as Canada Goose Holdings Inc. (NYSE:GOOS) is showing signs of further weakness.
Chart Canada Goose Daily: Market Is Going To “Pluck” It Again
Chart courtesy of tradingview.com
So many times, investors fail in an attempt to predict the top or the bottom of the market. The chart of the Canada Goose can be used to show a textbook illustration of this phenomena as from the end of 2017 the price of this stock was making new high one after another until it reached the $38 mark in February. I guess that investors started to short GOOS from $26 and above as the all-time high streak persisted. Continue reading "Canada Goose To Be Plucked Again"
We've asked Michael Seery of SEERYFUTURES.COM to give our INO readers a weekly recap of the Futures market. He has been Senior Analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets.
Michael frequently appears on multiple business networks including Bloomberg news, Fox Business, CNBC Worldwide, CNN Business, and Bloomberg TV. He is also a guest on First Business, which is a national and internationally syndicated business show.
10-Year Note Futures
The 10-year note in the June contract was basically unchanged for the trading week at 121/02 and has been going sideways over the last couple of months as traders are looking for some fresh fundamental news. I have been recommending a bearish position from the 120/18 level and if you took the trade continue to keep the stop loss at 121/18 as the original risk was around $1,000 per contract plus slippage & commission as the yield on the 10-year note is at 2.82%, and volatility remains very low. The U.S. stock market has experienced incredible volatility this week, and when the stocks are sharply lower the notes rally and vice versa as yesterday, we had a 700 point reversal in the Dow Jones. I'm still negative the entire bond sector as I think the yields are way too low as the United States experienced a 2.9% GDP number last quarter which is very solid. The 10-year note is trading right at its 20-day but still below its 100-day moving average as the trend is mixed. I still think prices will crack the 3% level in the weeks ahead so stay short & continue to place the proper stop loss as I still believe the risk/reward are in your favor as the longer-term downtrend line remains intact.
TREND: MIXED - LOWER
CHART STRUCTURE: SOLID
Continue reading "Weekly Futures Recap With Mike Seery"
Options can provide an alternative approach to the traditional buy and hold for the long-term strategy. Options can add value to one’s portfolio in a variety of ways, specifically, maintaining liquidity via maintaining cash to engage in covered put options, initiating positions via being assigned shares strategically prior to or upon expiration of the option contract and capturing premium income via closing out the contract prior to expiration as the shares move in your favor to realize income. Here, I’ll discuss these three different scenarios and strategies behind each one with real life examples.
Maintaining Liquidity and Capturing Premium Income
Maintaining liquidity is integral to any portfolio as cash can be deployed in opportunistic scenarios to capitalize on sell-offs or adding to a long position that has corrected to lower cost basis. Covered puts can be implemented as a means to leverage cash on hand to sell contracts that are covered by cash. This cash would be deployed in an effort to maintain this cash balance yet be put to work via an option contract. This cash reserve can be utilized for selling covered puts thus not purchasing the underlying security with the end goal of never being assigned shares and netting premium income in the process. Once the contract expires, the covered cash allocated to the contract will be freed in addition to the cash that was realized from the option premium at expiration. This scenario will allow cash reserves to be maintained while adding cash via covered put contracts. Continue reading "Covered Puts: An Alternative To Buy and Hold"