Since I have not gotten an idea out for a while, I just wanted to start small... It's no secret that our market is losing its momentum. Volatility is increasing and RSI is heading in a downwards direction. Longer term this market obviously can keep increasing, but for the short term it looks like a bump in the road.
I am keeping an eye on Alibaba has it has seen tremendous growth in the past week... Investor sentiment could be flipping for this stock, and it has at least another 20% to run if this is true. Consider a long position on this stock.
Be wary of shorting Tesla just because it looks overbought... It has been overbought many times before but kept ripping.
Investors are keeping tesla at the gap range above the bottom green line. If it won't break to the downside, that only leaves one option...
Volume keeps rising for TSLA, and with many people both buying AND shorting, this could lead to a...
Left Side: 49m (1/8 Day)
Right Side: Daily
We have a gap that needs to be filled monday, that I expect will act as a support. In the next week or two I would look for signs of an oncoming mean reversion (a 5% pull back minimum). The reason I am looking at this is because QQQ is short term overextended, a pull back is not out of the question. No immediate...
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Maslow's Hierarchy of needs is a psychology idea dating back to 1943. One must work their way up the pyramid to achieve a state of real happiness (thriving rather than surviving).
Each deficit does...
As volume increases, so do candle sizes. We are seeing both here, and this could be the start of a volatile couples weeks or longer. Prepare for a range expansion (we are pressing on the bottom bollinger band) and many volatile price moves. This typically includes a downward trend with a few big green candles tossed into the mix (trapped buyers). There's no doubt...
Left Side: Weekly Chart
Right Side: 49min Chart (intraday)
Despite the market looking choppy, ADBE is making new highs. If you decide to trade this, I would look for an entry at 560 (a support touch).
Stop loss @ 556 (below support), where the stock would likely do a full gap fill if this price level is reached.
We are at the top of a rising wedge channel. It's normal to see a rise in volume, as many investors are deciding to move out of the stock market. A rise in volume typically indicates a market top/bottom, and some sporadic price fluctuations. Expect much more volatility in the coming week, and the top trend line to hold as a resistance.
LMND has been rising very quickly, but that is coming to an end. Nasdaq made new highs and is pulling back, LMND is clearly pulling back alongside it.
LMND presents a good short opportunity. Call Credit Spreads for $100/101 is my play
Resistance @ 100
Support @ 78
Although we gapped up yesterday (Thursday) and today (Friday), we have not held the gap very well. There is very obvious bear pressure at 424, and we have been trending lower on 5 and 15 minute charts. The volume is the lowest we have seen since in over a year.
Short term outlook bearish.
Bulls and bears are equally matched in deciding whether to break higher or lower. Be wary of choosing sides here.
If you are short volatility, then you've probably been making a profit. The longer time we spend consolidating, the stronger the direction conviction is. June is historically a bad month for stocks, July is typically much better. We have pushed up 40%...