Hello everyone! GoPro, Inc. (NASDAQ:GPRO) had a sell signal exactly a year ago today indicating that this stock was in trouble and headed lower. That signal came in at $46.50 on a monthly Trade Triangle. GoPro is currently trading below $12 a share.
Two of the major indices are now officially in bear markets based on the Trade Triangle technology. I have talked about the power of the Trade Triangles and how they can give off early warning signals of impending changes in the market. For example, if you look back last December, members received an early warning signal that all was not well in the S&P 500. That signal came in the form of a weekly Trade Triangle on December 11th at 2,019.39. As I write this commentary, the S&P 500 is currently trading at 1,880! The same warning signals occurred in both the Dow and the NASDAQ. These warning signals occur in stocks as well, take a look at Apple Inc. (NASDAQ:AAPL), Best Buy Co. Inc (NYSE:BBY), Under Armour Inc. (NYSE:UA) and a host of other stocks that were once thought to be invincible.
If you have been reading this blog for any length of time you've heard me make the statement, "they slide faster than they glide". That means that markets tend to go down much faster than they go up. Some market pundits blame it on gravity, I just say that perception may be the real culprit here. Right now confidence in the market is low and perception is high that there is more trouble ahead. Continue reading "Exactly 1 Year Ago Today, GoPro Gave A Sell Signal At $46.50"→
This is a week that many investors would like to forget. It's the worst beginning of the year for equities since records have been kept.
Investors, some of whom are shell-shocked, are asking themselves, what should I do? Should I be a buyer here? Should I sell everything or should I just remain on the sidelines?
In today's video, I will be sharing with you some interesting views of the major indices that you may not have heard before. I will also be examining six big stocks that aren't so big anymore and what you should or should not be doing with them. I will be looking at gold which has done very well this week and predicting where I potentially think it can go.
Volatility is exploding in the markets setting up a major short squeeze in gold. We've identified a key Elliott Wave and Fibonacci support zone that's being used as a launch ramp. We put together an interesting option play that will protect us from the downside with a small profit, but yield a major profit on a rip higher.
As the first week of trading in December comes to an end, the markets have proven to be what I warned everyone about - volatile and dangerous. The last two days for the major market indices have not been pretty and certainly have done some internal technical damage that I will discuss today.
One thing worth remembering, this is the sixth year of a bull market. In bull market terms, that's an old bull that may be running out of steam.
2015 has been a difficult year for many hedge fund managers as there simply has not been a lot of movement in the overall indices. Based on yesterday's close, the Dow is down 1.94% on the year, the S&P 500 is down 0.45% and the NASDAQ is up 6.37%. This is a very mixed picture and I would not be surprised to see more pressure on these markets in December. I think a lot of money managers may just square up their trading books and wait to look at the markets in 2016. Continue reading "The Markets Could Get Ugly This Month"→
Now that the Thanksgiving holiday is over and we're entering December, traders should take extra care. Historically markets can move rather dramatically in December as trading volume thins out when traders start closing down their trading mindset and move out of the markets and into holiday mode. You do not want to start swinging for the fences to try to make your year in December, the odds are against you.
In addition to looking at the markets in general today, I'm going to take an in-depth look at the gold market. Everyone seems to be bearish on gold and what I have noticed over my trading career is that when everyone feels the same way about a market and is on one side of the trade, watch out!