Getting Ready For The Next Big Move

Seven years ago the DOW was trading around 6000, today this index is over 17,000. So what is the next big move in this index? I suspect the next big move will be on the downside.

Today, China announced that exports hit a 7-year low which indicates to this observer that economies around the world are slowing down.

Technically in many of the major stocks we still have red monthly Trade Triangles indicating that the trend is still down longer-term. The same holds true for the major indices where we are still seeing monthly red Trade Triangles.

At the end of last week, I indicated that I expected this week to be choppy and range bound, as the major indices have all reached major Fibonacci resistance points. I expect the indices to turn back down after a week or two. I still hold to that belief and want to watch these markets very carefully looking for an entry point to go short. Continue reading "Getting Ready For The Next Big Move"

Sometimes No Position Is The Best Position

What do I mean by that?

To put it simply, sometimes being on the sidelines in a cash position can be beneficial to your portfolio. There are times in the market when trends are very clear, whether it be up or down. At the moment when you look at the DOW Index, the Trade Triangle technology is indicating that you should be on the sidelines as the major trend remains down while the intermediate-term trend is positive. Over at the NASDAQ and the S&P 500, you should still be negative on those indices, providing the 4,636.93 and 1947.20 levels are not breached to the upside.

Today could be a very interesting day, we could see the recent upward momentum reverse back down and witness a pullback in the major indices and many stocks that have recently rallied against their longer-term negative trends.

Here are a few of the stocks I'm covering today. Continue reading "Sometimes No Position Is The Best Position"

Alphabet, Amazon and Apple All Have Something In Common

Hello MarketClub members everywhere. Well, here we are at the end of one extraordinary week for the equity markets. I don’t remember a week where we watched the major market indices rally so dramatically from a bearish position in just three days.

In today's post, I'm going to be looking at the big 3 A's, Alphabet, Amazon and Apple. What these three stocks have in common is that they are all in downtrends and they all formed a negative (bearish) engulfing line yesterday. Should any of these three stocks close lower today, they will confirm that the high on Thursday will be a formidable resistance area for these stocks to overcome in the future.

Alphabet Inc.(NASDAQ:GOOG)

Trade Triangles: Weekly red, Monthly red, overall trend is bearish, trend strength -85.

Daily Chart of Alphabet Inc.(NASDAQ:GOOG)

Alphabet has a negative trend at the moment even though it has been extraordinarily strong in the past several years. It's not to say that it's going to hell in a hand basket, but rather it will begin to reflect a slowing economy that is evident in both the retail and dining sector. I would view a close below $697.34 as a confirming signal that it has put in an interim top and is going to retest its recent lows. Continue reading "Alphabet, Amazon and Apple All Have Something In Common"

Can Google Overcome Apple As The Most Valuable Company In The World?

Welcome to the first day of trading in February. If it is anything like January, it's going to be quite a month.

After the close today, Alphabet, Inc. (NASDAQ:GOOG) will announce its earnings. If it is a blowout and Google surges $25, it will then become the most valuable company in the world - not bad for a company that was founded on September 4, 1998 and has only been around for 17 years. It took Apple, Inc. (NASDAQ:AAPL) which was founded April 1, 1976, almost 40 years to become the world’s most valuable company.

Today, Google flashed a buy signal putting both the monthly and weekly Trade Triangles in unison. That indicates there are good odds that Google will beat its earnings estimates after the close. There are no guarantees, but the odds would favor being long Google before the close.

Let's take a look at the rest of the markets which are not having such a good time of it. The dramatic rally on the last day of trading in January was more a function of short covering than anything else. Most stocks and indices are in a longer-term bearish trend based on MarketClub's Trade Triangle technology. Continue reading "Can Google Overcome Apple As The Most Valuable Company In The World?"

Best Technology Stocks To Invest In For 2016 And Beyond

From the Focused Stock Trader

2015 was a great year for the technology sector. In fact, technology stocks outperformed the stock market in 2015, far outpacing the results of the S&P 500 stock index. Tech leaders Apple, Microsoft, and Alphabet recently released impressive earnings reports and their stocks have risen accordingly. Every investor has their preferred strategy, whether it's income investing, growth investing or alternative strategies. The below tech stocks are strong contenders when it comes to the best technology stocks to invest in for 2016 and beyond.

Apple Inc. (NASDAQ:AAPL)

Apple's stock has seen excellent growth over the past few months, topping out at a high of $134.54 per share. But nothing lasts forever in the world of stocks and Apple shares are now down. Tech analysts have announced that the smartphone market is ready to decline. Due to this, many investors are forecasting a troubled 2016 for Apple and have begun to sell. However, this is a great opportunity for long-term investors to grab some shares of this tech giant at an excellent price. Continue reading "Best Technology Stocks To Invest In For 2016 And Beyond"