Just Keep Buying; Just Keep Buying -

Trucharts.com - Mid week markets update:

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The markets are on edging on the verge of a breakout - and looks like now we have to catch up with the bubbles in China, India and Hong Kong - money printing eventually always leads to bubbles and all the central banks do not care - under the guise of slowing economies - money printing and 0% interest rates are driving an asset and stock bubble - the central banks will never admit it, even if it is staring it right in their faces - since they are scared shit to raise rates. This has led to property bubbles and stock bubbles - no one can tell now when this will end - but when it does - watch out below - this is totally unsustainable and complacency is becoming the norm - unbelievable. Bubbles after bubbles and the only folks making money from this are the VC's who love companies with no earnings going IPO and they cash in really good. 

For now our motto is: like the fish in the NEMO movie says -  

"Just keep buying, just keep buying" (like "just keep swimming..."). 

We closed CAT today. Our SNDK short worked well and we will close position today. We like ETSY here but want to wait for a week to buy. Still long BIDU & USO (doing very well). Our MO position is also doing good and as is TWTR.

Trucharts team

What will you trade this week? We like these stocks...

Trucharts.com Blog - Updated - week ending - 4/10/2015

What will you trade this week? We like these stocks...

A hectic week and now the earnings train will come to town this week. So many earnings, and we can expect, very likely a lot of surprises and disappointments - we love Wall Street - they have been lowering the earnings estimates and then it is very likely that the company will beat the lowered estimates and everyone looks like a hero - the CEO, the analyst, CNBC and news guys love surprises. Is it going to be a train wreck or a smooth ride - what is the Q2 forecast going to be like - these are the questions we need to think about.

In the background we have the Euro dropping, oil moving higher and gold also. The European markets are ripping and now the experts are predicting if the British pound is going to drop thereby driving British stock market higher - well we are in a currency war now. The Chinese and Hong Kong stock markets are on an exponential move and we had pointed to an article on our twitter post  https://www.twitter.com/trucharts) about how housewives in China are now playing in the Chinese and Hong Kong markets. This is not about to end yet - bubbles do not end abruptly - these end when everyone on the streets, including your barber, is talking about stocks. So, still a ways to go.  

Well let us see our markets - the biotech sector bounced perfectly off its 50d SMA average, as did many of the biotech stocks. The DOW, and SP500 are exhibiting a wedge pattern, which seems to be pointing that the markets may breakout here. The NASDAQ which is primarily being driven by the biotech stocks seems to be forming a right shoulder - check the charts on our home page.

Well what will you trade this week - the tech stocks - the big industrials - check the earnings calendar on our site at: (http://www.trucharts.com/EarningsView.aspx) - additionally, we show the date on the stock charts page as shown below (see red marked box on the right corner):

We are going to close our AEM position and SNDK.

Well what stocks are we going to trade: Here are our picks - be mindful of the earnings dates:

We closed BIDU and TWTR in one account - but here are the charts we like this week:

1. www.trucharts.com/stockview.aspx?TICK=CAT - earnings are on 4/23 - but the chart looks 

    excellent

2. www.trucharts.com/stockview.aspx?TICK=TWTR - earnings are on 4/28 - we like TWTR

3. www.trucharts.com/stockview.aspx?TICK=XOM

4. www.trucharts.com/stockview.aspx?TICK=USO  - ETF - has a good chart

5. www.trucharts.com/stockview.aspx?TICK=LLY

We had picked MYL, TEVA, LLY, ABBV, LO, RAI and M in our last blog and all of these did very well. We still like LLY (watch earnings date).

Check out our best rates for subscribing to our site at - we offer the best feature set on the web: http://www.trucharts.com/truCharts_Services.aspx

Best of luck trading.

Trucharts Team 

3 weeks and 15% return on one stock - how did we do it!!

Trucharts.com - covered call buy-write strategy BIDU stock - 

Free Stock Chart, Scans and best features of any stock charting site on the web:

How we made a 15% return in 3 weeks..

Our return of 15% on BIDU - bought stock at 205 - wrote weekly covered calls for two weeks $5.00 each - these expired worthless and then we wrote another covered call for this week for $5 - total credit was for $15.00 (for three weeks) and if stock gets called away Friday 4/10 we would end up making $1500 on ($10250) investment (50% margin). Awesome 15% return!! 

UPDATE : OUR STOCK CALLED AWAY ON FRIDAY APRIL 10.

Chart here: www.trucharts.com/stockview.aspx?TICK=BIDU

Trucharts team

How to trade this week after the bad jobs report?

Trucharts.com - Blog - Easter Weekend - Stock Charts Free - and more.

How to trade post Easter and what to expect?

We talked about the horrendous job reports we got on Friday in our last blog update - just a reminder the reports showed 126K jobs created vs the expectations of 226K. Futures dropped on the news and the USD dropped - gold rallied and then we had oil rallying this weekend with the Saudi's raising the price of oil to the Asian nations because of demand. In addition, we have the nuclear deal with Iran and then the war going on in Yemen - this is definitely going to impact the oil price volatility. Gold is up today over $12+.

The talking heads on TV are already trying to predict the Fed's move in Q3 and we still expect that the Fed will raise rates in Q3 unless the jobs report stays below 150K. With summer coming, we expect the jobs report to improve going forward. 

Futures are down this evening (DOW futures down -115) after recovering from a 200 point drop and everyone is already trying to predict whether the Fed is going to hold off on raising rates based on one jobs report (which we think is a blip) and should resume an upward trend next month. The weather did have an impact and we suspect hiring in the oil sector was down. 

We indicated that the earnings news has not been very encouraging and we expect that the forecast for the tech sector for Q2 will not be strong. With INTC and SNDK lowering revenue forecasts, we expect numbers to be coming down in the tech sector - recommend taking profits in this sector. We are looking to short TSM and SPIL.

Since we now have to wait till the next jobs report, we expect that bonds will rally here and yields will drop and this will help the utility and dividend paying stocks to shine at least for the short term, in addition to retail/housing stocks. We like the following stocks:

MO - (we are long) www.trucharts.com/stockview.aspx?TICK=MO
RAI - www.trucharts.com/stockview.aspx?TICK=RAI
LO - www.trucharts.com/stockview.aspx?TICK=LO
M - www.trucharts.com/stockview.aspx?TICK=M
PHM - www.trucharts.com/stockview.aspx?TICK=PHM

We are short SNDK, and long USO, BIDU, MO, TWTR. We still like TWTR and you can also check out our predefined scans report on our site at www.trucharts.com/marketreports.aspx.

Also check out our special subscription deals for complete access to our site at:
www.trucharts.com/charts_services.aspx

Good luck trading.

Trucharts Team

What will markets do this week? Semi Stocks, and which stocks are on our buy list

Trucharts.com Blog - What will the markets do this week - and which stocks are on our buy list?

Where are the markets headed this week? The markets exhibited volatile behavior this past week. The DOW and the SP500 ended below their respective 50d moving averages. The markets closing below the 50d SMA is a sign of weakness and with the upcoming earnings season, it would be wise to take some profits here and wait to take positions after earnings season is over. The NASDAQ held up due to the biotech bounce and the semi stocks on Friday due to takeover talk of ALTR by Intel (INTC). We expect the bounce to the 50d moving averages for the DOW and the S&P. See the charts here below for the DOW and the S&P.

In the commodity complex, gold had rallied hard due to the conflict in the Middle East and the Eurozone uncertainty with Greece. Oil moved up and then pulled back Friday after Yemen was bombed by Saudi Arabia. We think this conflict and Eurozone uncertainty will keep oil and gold volatile in the coming weeks. We think the risks in stocks is growing and we also showed a chart of the margin debt in China used for trading and buying stocks on margin - here it is again:

The Fed indicated that rates will start rising gradually from September - we believe this is coming and the markets are starting to get ready for rates to move higher. Here is an excerpt from the weekly Mauldin Economics newsletter (you can subscribe at Mauldin Economics) - an excellent writer: We call it the world on a debt binge thanks to the Fed:

Quoted as is from 'Thoughts from the Frontline' by John Mauldin
Begin Quote

This report was underscored by a rather alarming, academically oriented paper from the Bank for International Settlements (BIS), “Global dollar credit: links to US monetary policy and leverage.” Long story short, emerging markets have borrowed $9 trillion in dollar-denominated debt, up from $2 trillion a mere 14 years ago. Ambrose Evans-Pritchard did an excellent and thoroughly readable review of the paper a few weeks ago for theTelegraph, summing up its import:

Sitting on the desks of central bank governors and regulators across the world is a scholarly report that spells out the vertiginous scale of global debt in US dollars, and gently hints at the horrors in store as the US Federal Reserve turns off the liquidity spigot….

“It shows how the Fed's zero rates and quantitative easing flooded the emerging world with dollar liquidity in the boom years, overwhelming all defences. This abundance enticed Asian and Latin American companies to borrow like never before in dollars – at real rates near 1pc – storing up a reckoning for the day when the US monetary cycle should turn, as it is now doing with a vengeance.”

End Quote

There were some interesting picks we made this week:

1. SNDK short - staying short (company forecast lower revenue for the current qtr) - 
2. TWTR long and still long - looking to add to our position - we like TWTR and believe that they are ready to ramp their revenue model via ads (like facebook). The weekly chart for TWTR looks good (TWTR chart). 
3. Took a position in BIDU at 205 and are still long with a buy-write strategy. 
4. Additional positions we have are short AEM, long USO. 
5. Position in LLY was called away due to covered calls.

We wrote an article on IBB this week and showed that the weekly chart showed very good support at the 13 week and its 50 week average - here is the chart: We expect a pullback in IBB to the 13 week and if it closes below the 13 week, we expect a test of the 50 weeks SMA. Here is the chart:

Good luck trading.
Trucharts.com team

Is the market top in???

Trucharts.com - Stock Chart Free, Screener, Scans, and much more - 

Another interesting fact - we have not seen an pre-announcements for upside surprises this quarter - means earnings may not be as strong as Wall Sreet thinks and with INTC and SNDK lowering their forecasts, we expect that semiconductor industry is entering a slump. Majority of the Q4 demand last year was driven by computer upgrade cycle and Iphone 6. 

Remember we talked about the three 6 factor - 6th year of bull market, Iphone 6 and the Samsung galaxy 6 - and the market bottoming at 666 in 2009.. Hmmm!!!! is the top in!! 

Take profits - Short SNDK.

UPDATED:


Check these support levels for ETF IBB: 13 week and 50 week SMA have been great support before. See the two circles.

Trucharts team

Markets falling falling - Market Update 3/25/2015

Markets falling falling - and Biotech crashing:

UPDATE: This link just added:

Free Charts for Stocks at Trucharts.com and more: 

Please read this excellent article on market valuation: 
http://www.marketwatch.com/story/stocks-are-overpriced-overleveraged-headed-for-trouble-2015-03-25?siteid=yhoof2&cb=logged0.5530515506397933

So the biotechs are coming down. TWTR was downgraded today - we had sold covered calls. In our weekend blog we talked about weakening technicals in spite of new highs and the extended stocks like AVGO,NXPI and SWKS - tech stocks look weak heading into earnings season - short MSFT.

Also check out BIDU (down today) - covered call written. Our call on shorting SCO looking good. TJX holding, LLY down but still a hold. Z (down) - hedged with covered call. USO up today.

Short APOL.

Chart here: www.trucharts.com/stockview.aspx?TICK=APOL 
(Stock is going to 0).

Shorting AMKR end of day:

Stocks of Interest - and Covered Call Strategy with 12% return - Market closing 3/11/2015

Trucharts.com - Markets Update and Stocks of Interest and Covered Call Strategy for BIDU

Markets were in an oscillation mode today and we had several negative and positive readings. But at the end of the day - markets ended down. We shorted UAL today - even though it was up today - our position in BOX stock is doing well (we write covered calls and / or covered puts on our longs/shorts) as needed based on market conditions.

We still expect SP to test 2025 and the Euro to go below par to the USD - our target is 0.90 - 0.95 - currently it is at 1.056 approximately.

We are short AEM and UAL. Stocks long positions are BOX, TWTR, USO, DATA, Z. 

Looking to go long BIDU - chart here - www.trucharts.com/stockview.aspx?TICK=BIDU - we like the stock primarily because it looks oversold and the call premium is very good and therefore the short term returns with covered call writing will provide a good return on the investment. Be aware that this a volatile stock. 

So let us say you buy 100 shares on margin - for 2 months - margin rates vary but are around 2-4% currently.

The covered call for near the strike price of 205 for APRIL 17 2015 is around $5.00 - so you will collect 500 as premium for one month and then your cost will be around 200. Let us say on April 17th the stock is at 200 and your call expired worthless (205 strike) - you can write the 200 call for May 15th around that time should be around $7 and you collect 700. Your total investment on margin at 50% is $10000 and you collected $1200 as premium on the calls and your cost went down to around $193.  BIDU call writing makes lot of sense and therefore we are looking to do this trade.

TruCharts team   

Good article on 401K/Roth IRA and IRA accounts - tax savings

Stock Charts Free/Scans and Dividend Stocks - Trucharts.com -


Good article for people with 401K and IRA and Roth IRA accounts

http://finance.yahoo.com/news/save-money-recent-ira-401-181500169.html

Trucharts team