In the world of finance and stocks, there are times when “the stars line up” to create an especially interesting story. Such was the case when the announcement was made in March that Chicago-area Horizon Pharma Inc. was joining forces with privately held Vidara Therapeutics (a company which is listed as being headquartered in Roswell, → Read More
How bad is the market? Every trader and investor who pays attention to the markets is trying to answer that question right now. Since the beginning of the year, Goldman Sachs (GS) is down 15.5%, Amazon.com (AMZN) is down 23.6%, and Staples (SPLS) is down 25.7%. But before concluding a bear market has begun, consider → Read More
Draw an trendline on the S&P 500 chart from the November 2012 low and it happens to currently coincide with the big round-number 1800 level. With no other support levels nearby, 1800 will be an important psychological level for the S&P. Unless a new wave of optimism blows in, the magic 1800 level will attract → Read More
In Friday’s Seasonal Forecaster newsletter (4/4/2014), I pointed out one of our best stocks of the past several months had changed in character. Covance (CVD) had twice tried to break to new highs, and both times it immediately broke down on high volume. Compared to the past year where most above-average volume days were on → Read More
How High Can Mountains Be? All of a sudden, answering this question became a big concern with me. Thursday evenings seem to be fertile ground for these types of questions (along with the other six days). Is there a maximum limit to the height of mountains? Unsurprisingly, this question has been asked before. A web search → Read More
There is one technical analysis technique I use that you won’t find in any book. I don’t even have a term for it – maybe ‘pullback smoothness’, or something like that. I have noticed over the years that stocks that pull back forming a ‘smoothly’ falling Stochastics tend to rebound cleanly. By this I mean → Read More
Inverse ETFs I see too much risk and not enough gain in various bearish trades I’ve been looking at. Sure, I look at many charts and see textbook bearish setups. So this environment must be ripe for bear put spreads, long puts, and short stock trades, right? But with the money that keeps coming back → Read More
The February 19th, 2014 Seasonal Forecaster newsletter introduced readers to a stock not often mentioned on the financial press. “Ann Inc, a women’s apparel chain, has good fundamentals (an EPS growth rate of 43% and a Return On Equity of 26%). My interest in this stock is it has a very strong seasonal right now. → Read More
On March 7th, I presented a puzzle. I showed a stock with a high probability rebound pattern: I showed how the stock has been steadily increasing revenues as well as earnings: I showed an ROE that institutions love: The number of funds holding this stock has been steadily increasing: I detailed insider buying: “On December → Read More
Goldman Sachs’s most recent trend suggests a bullish bias. One trading opportunity on Goldman Sachs is a Bull Put Spread using a strike $160.00 short put and a strike $150.00 long put offers a potential 8.81% return on risk over the next 30 calendar days. Maximum profit would be generated if the Bull Put Spread → Read More