Hello traders everywhere! Adam Hewison here, President of INO.com and co-creator of MarketClub, with your video update for Monday, the 6th of January.
2 Stocks To Watch
Eli Lilly and Company (NYSE:LLY), developer, manufacturer and seller of pharmaceutical products worldwide, had a new monthly Trade Triangle today at $51.62 and in doing so also broke above an 8-month long-term downtrend line. This stock is clearly in an uptrend and I would want to treat it and approach it from the long side.
My upside target for this stock is $57-$58. As always, I will be using the weekly Trade Triangle for any subsequent exits and entries.
Information technology (IT) and infrastructure management software company, Solarwinds (NYSE:SWI), appears to have completed a 61.8% Fibonacci correction from its highs set back in September of 2012 around the $60 area. With today's appearance of a new monthly green Trade Triangle, the trend has once again turned back up, indicating that the stock should be moving higher at least to the $45 level. This level would represent a 50% recovery from the major correction. Today's monthly Trade Triangle signal came in at $39.15, and the market is trading just a little below that level at the moment.
Remember Groupon (NASDAQ:GRPN)? The discount online company that gives you deals on everything from facials to kayak rides? Well, it popped up on my radar screen today thanks to a new monthly Trade Triangle signal. The signal came in at $12.31 and looking at the longer-term picture for Groupon, it would appear as though this stock could get back to the $16.75 level. This would represent a 61.8% Fibonacci retracement. Is someone or something breathing new life into Groupon? At least it appears that way on the chart.
A word of caution, we are still in thin holiday trading markets and will remain there until everyone returns from vacations and gets serious about trading the markets next week.
Every success in the market and 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.