A Knee-Jerk Reaction to Yellen

31Mar3:07 pmEST

A Pyramid Scheme with a Flag

With VRX reversing sharply back down this afternoon, it is worth revisiting some scenarios where the market may force Bill Ackman's hand. Of course, this is not about calling out a talented and intelligent billionaire, but rather seeking out actionable ideas based on historical market patterns. Specifically, if Valeant continues to sell-off, an...

31Mar1:02 pmEST

This Market Leaves You to Your Own Devices

Medical devices, that is. The medical device space has been heating up of late, with some of the tightest charts in the market right now. Abiomed, below on the daily timeframe, is one such example. Note how ABMD saw price base tightly in recent sessions after its prior advance, with an enticing spike in buy volume on Tuesday. I am looking to...

31Mar10:45 amEST

The Exacta Bet in Biotech

As has been the case for a while now in this market, the day-to-day reason and rhyme seems almost random. The relative weakness in biotechnology and healthcare stocks, for example, has not made them easy shorts in any manner. Case in point: Biotech is actually leading the market by a long shot this morning, an otherwise flattish, consolidating...

30Mar5:05 pmEST

Stock Market Recap 03/30/16 {Video}

The following video is a brief, condensed version of the Stock Market Recap which I present each evening to members of Market Chess Subscription Services. In the longer version, I offer tons of actionable trade ideas, educational content, and in-depth objective analysis across all markets. If you enjoy my videos and blog posts, then please...

30Mar3:41 pmEST

A Bit Hot

I will flesh this out for Members and in the brief recap here tonight, but the QQQ (and SPY) are both dealing with their upper daily chart Bollinger Bands for the first time many months, well before this rally started in February. While other indicators (like NYMO) had flashed very overbought previously, the Bollinger Bands have not until now....

30Mar12:43 pmEST

Proving Oil's Guilt

The rally in crude oil since February has often coincided with the improved price action in equities. The two have parted ways this week, however, with black gold taking a dive after this morning's inventory report, especially. Equites have ignored plenty of potentially bearish divergences of late, which means extrapolating the crude weakness...

30Mar10:45 amEST

Making Friends with New School Talent

The payment processor plays have been an emerging area of potential new leadership in the market, not to mention being logical takeover targets for stodgy credit card firms looking to sharpen their business models. We know PayPal and Square are on the radar for an increasingly number of market players. But Vantiv is also worth a look. On the...

29Mar5:26 pmEST

Stock Market Recap 03/29/16 {Video}

The following video is a brief, condensed version of the Stock Market Recap which I present each evening to members of Market Chess Subscription Services. In the longer version, I offer tons of actionable trade ideas, educational content, and in-depth objective analysis across all markets. If you enjoy my videos and blog posts, then please...

29Mar3:33 pmEST

The Mystery of the Steakhouse Quartet

Of the four major steakhouse chains traded publicly: BLMN (Outback) DFRG RUTH TXRH, RUTH and TXRH have been acting the best. At issue now is whether the current market rally will broaden out and enable the entire "steakhouse quartet" to rally in unison, the way RUTH and TXRH seem to be, today. BLMN is a sloppy chart and need to hold $16, and...

29Mar12:50 pmEST

A Knee-Jerk Reaction to Yellen

Precious metals and miners initially lurched higher in the face of apparently dovish commentary by Chair Yellen, just now. We know the metals and miners have been consolidating their prior rallies in recent weeks, and have yet to break to fresh higher. However, if the strength throughout the New York lunch hour holds into the rest of the...