Monday, November 24, 2014

Projected Price Targets For AAPL

Here are some price targets for AAPL using four different approaches.

Setting the Fib retracement point from the April earnings gap projects a 161% Fib level of 118.35 which was exceeded at the close today:

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Sunday, November 23, 2014

Black Gold

Couple weeks ago we started to look at gold after we have observed a possible near term bottom type of price action. Today, we will take a look at the oil or black gold. Oil appears to have put in a near term bottom that might present some near term swing long trades along with some of the energy stocks.

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Sunday, November 16, 2014

Another Golden Moment

The market finished with another positive week as the DJIA & SP500 continue to make new all time high, and the NASDAQ 100 printed another new multi-year high. The breadth of the market continues to show sign of weakness, and the DJT along with the Russell 2000 also starting to weaken. The bright spot of the week was gold. Last Friday, it was another golden moment for the precious metal.

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Friday, November 14, 2014

It Tried

The title said it all. Whomever and whatever it is, it tried to fool the market participants into believing the market has the strength to continue to make new all time high. It tried to over shadow the market’s natural movement by injecting manipulative money into propping up the indices. Fortunately, the market always reveals to us what it is doing. The market shows us not by how much gain the indices have attained, or how high the indices have reached. Instead, it shows us through its breadth indicators how weak it is and how concentrated is the manipulative liquidity.

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Sunday, November 9, 2014

Everyone Is Waiting

The market seems to be in a holding pattern of some sort and everyone is waiting for something to happen. Although the DJIA and the SP500 continue to make new all time high last week, but trading activities seem to be very subdued. The market has been up for the last three weeks and it is quite extended, therefore one should be cautious and be prepared for possible sudden pullback (note: the video I stated a 1 to 2 days, it should be 1 to 2 weeks of possible pullback).

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Saturday, November 8, 2014

Mirror Mirror On The Wall

Here is a look at some chart patterns in a slightly different perspective.

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Tuesday, November 4, 2014

Oil Hidden Agenda

The current falling oil price is not all about excess supply or the slowing down of the global economy. It is about control, the control of world oil prices by OPEC. As US oil producers refined and improved the fracking technology for extracting oil, this has caused a hidden price war launched by OPEC to retain control of the oil market. While there is an oversupply of oil, the largest OPEC oil producer, Saudi Arabia has not reduced its oil production to halt the falling price of oil. Not only OPEC did not cut production, it has just reduced the price of oil destined to the US. This price reduction has two purposes, one is to retain market share, and second is to determine at what price level it will cause US oil producers to cut their production. It is vital for OPEC to know the US producers’ breakeven price level in order to control the world oil market.

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Monday, November 3, 2014

Coal Play

The outcome of tomorrow's US mid-term election could have ramification on the coal stocks. Here are three coal stocks that could be setting up to be in-play after the election.

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Saturday, November 1, 2014

The Maneuver

Base on the title of this post, you might have thought I am going to write about the maneuver the Bank of Japan (BOJ) has announced on 10/31/2014. Although BOJ’s version of QE is a big deal and it will essentially take over from where the Federal Reserve (FED) has left it; the creations of the next asset bubble. This is not news that a central bank will be in the market. In matter of fact, the central banks have been in the market for a while already and have been maneuvering within the market (courtesy of Zero Hedge "Central Banks Trade S&P500 Futures"). What is news is BOJ publicly announced it will be in the market and told the market what it will purchase and how much it will purchase.

What this post will concentrate on is how the market maneuvers trend changes. There have always been different forces maneuvering within the market, and some of these maneuvers can alter the short term price movement but they cannot alter the longer term price direction. The longer term price movement will always base on fundamental factors that are related to economic activities and asset values. The market will move accordingly to the expansion and the contraction of economic activities, and similarly to undervalued and overvalued assets.

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