Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Monday, the 8th of July.
Earlier today we posed the question, "Are the odds in your favor for a up market in July?" Well, it certainly seems so, given this mornings trading action, all the indices are on the plus side of the ledger so far for the month.
Today's Profit Taking In The Crude Oil Market Doesn't Change The Trend
Crude oil is seeing a little bit of profit-taking coming into the market after its recent sharp run up. I have an upside target zone of $110 level for crude and I expect the upward trend to continue for a while longer. Look for any pullbacks to present buying opportunities rather than a shorting opportunity. The trend is clearly established to the upside, so trade accordingly.
The Amazon Is a Big River, But It's Also a Stock On The Move
Amazon (NASDAQ_AMZN) the company whose mantra is to sell everybody everything, is up strongly today. As I have said before on this blog and in previous reports, I still think this stock has a way to go on the upside. Amazon has clearly established itself as the leader in online commerce. As the mighty Amazon rolls on, it becomes increasingly more difficult for competitors to catch up given the breadth of products and services. Again, head honcho Jeff Bezos's strategy is just control everything and get as big as you can to wipe out your competitors and then you can pretty much charge what you want. I see this stock clearly moving higher as it has broken out to the upside from it sideways pattern of the past several months. My upside target for Amazon is now $330 by the end of the year.
On Our Radar Screen Today
BROCADE COMMUNICATIONS (NASDAQ_BRCD)This stock broke over a very important down trend line in August of 2012 changing the trend to positive. The market has been a little bit choppy but it seems that we're just building up steam to go higher. All of the Trade Triangle's are positive with today's Monthly Trade Triangle signal kicking in at $6.03. My target for this stock is a move up to the 9 or 10 level. A move of that magnitude would represent a 50% return on investment. I would place stops on this position at $4.95. I see BRCD as a 3 for 1 trade, for every 1 dollar you risk you have the potential of winning 3 dollars.
If you haven't watched any of my recent videos, you can watch them by clicking on the links below.
Recent Special Videos:
Five Professional Trading Rules
Listen and Learn
Three Easy Ways
Fundamentals VS Technicals
Early Warning System
S & P 500 (SP500)
Have a great trading day,
Adam appears frequently on the following financial news channels as a guest expert. Click on any cable logo to watch Adam's latest appearance.