What will markets do this earnings season - trucharts.com blog weekend edition and update

What will markets do this earnings season - trucharts.com blog weekend edition and update:

Well we had the big down move and then the earnings season started - VIX was elevated and the shorts or bears were thinking they had the upper hand - but maybe it was too early and too easy. Like they say when it is too good to be true then... The bears are probably licking their wounds - it is never good to be taking hefty positions in one direction or the other upon the dawn of earnings season, and last week, we think bears were caught off guard and this bubble growing bigger last week. Stocks like NFLX and GOOG/GOOGL killed the bears moral. We think many people were short these stocks into the earnings for these companies.

ADDED: We do not like the semi sector here - there is definitely a slowdown in this sector.

Gold is dropping like a rock - we predicted around 1000/oz and that is where we are headed - this is a bad sign seeing gold dropping - long term implications are not good - but this can be expected since markets are going up and the sentiment is in favor of the markets going up. The scenario is playing out like the 1999-2000 bubble - where stocks kept going up - real estate was going up (like now) and people stopped taking the refuge in gold and gold dropped to $200/oz and then rallied into 2008-2009 to 1900 per oz. We think we should wait on gold to bottom out and the markets topping action to complete its cycle. The bears have not thrown in the towel yet and the NASDAQ is now leading the markets - sounds like 1999-2000 - well a repeat is here. 

How can we forget about Greece - well the government and the leaders caved in and we know that the finance minister resigned because Tsipras was going break his own word. Now Greece maybe saved and the Germans averted their egotistical Euro but we think this is not the end - with many other countries to follow.. Sell out Tsipras.. 

Fed will raise rates this year and quickly ramp this into the new year - rents and housing are moving fast and the Fed does not want this to get out of hand..

The internet stocks are trading at ridiculous valuations - again - check the market caps of all the major movers last week - FB, GOOG and NFLX. Biotech is still moving up and the breadth in the overall markets is very weak - that means that leadership is very narrow and only a small section of the overall market stocks are moving higher. There is very good evidence of a bubble scenario here - stocks up, real estate up and the Fed is still at 0% rate. You can clearly see this in the ETF and stock charts below: Do you see a pattern here??  SPY bounced nicely off the 50 week SMA.

 

 

 

 

Looks like the bubble is still intact.

Just check the charts for IBB,NFLX,NKE,UA,NEU and there are many others like these. YUP there is no bubble. 

Next week over 450 companies will be reporting earnings - AAPL,MSFT,IBM,MMM and many others. We think the NASDAQ is taking the lead here from the internet and biotech stocks and the biotech bubble is still not ready to burst. These are great trading vehicles. We expect the DJIA to stay range bound and the SPY to track the NASDAQ - VIX dropped to below 12 and the stocks were coming off an oversold condition and the technicals like MACD, RSI and SMAs still are pointing to a move up.

We closed our INTC short and are short AMBA,AEM and long BIDU,CYBR,WBA and V,
WBA Chart: www.trucharts.com/stockview.aspx?TICK=WBA 

We like BIDU here - coming off a bottom and oversold condition - earnings are on 7/23.

Check out our site and we have the best buy/sell signals on daily and weekly charts - no other site offers this feature and we will be now limiting access to paying subscribers very soon.

Good luck trading and focus on hedging your positions with options - we do that for all our positions.

Trucharts Team

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Greece, Markets and Dow Jones below 200d SMA - Mid week update - Blog Trucharts.com Stock Blog

Mid Week Update - Trucharts.com Stock Blog - Will Grexit be a reality and stocks to trade and China stock markets

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What a week - sorry, we could not post over the weekend and then we had huge market movements in China, US and then the Greek referendum. 

China markets were down over 30% and the Chinese government made or passed laws to arrest folks who were aggressively short selling, then increased margin leverage, forced brokers to plead a measly 120B Yuan to buy stocks, banned companies from selling their own stock and I am not sure when this list will end. Well in response to all these wonderful government interventions, the markets rebounded yesterday to the tune of 200 points and everyone was getting excited. We are non-believers of this rally and think it will still take its own course eventually - we believe the China growth engine is slowing due to their shadow banking and debt problems of the state owned entities. We expect the Chinese GDP growth to drop to below the 7% number and the Chinese are very concerned. We stated that the world is mired in overcapacity and China is at the root of this overcapacity. We expect a slight bounce in the markets here, but the downtrend should resume - timing not clear. When you are minting a billionaire everyday, you will eventually have more billionaires than anywhere in the world... Bubbles, bubbles and more bubbles and the Chinese government does not know how to handle bubbles - amateurs. And they have been printing money non stop - this will come to haunt them someday.

Now Greece - well the referendum passed with an overwhelming NO to the Eurozone and it is not clear what the Grexit will look like - we believe the Eurozone members Germany and France are extremely concerned about the future of the Euro zone if they allow Greect to exit - this is called dismembering - if one falls will others follow - Italy, Spain, Portugal and who else!! That is the reason the Eurozone leaders are scrambling to prevent Greece from exiting - we still expect that this is inevitable.. 

US markets - We stated in our previous blogs that the markets were exhibiting topping action and sure enough we had the markets trying to hold levels of 18000 for the DOW, 2100 for the SP500 and the 5000 level for NASDAQ. This topping action was ongoing for 4-6 weeks with 3 digit moves every other day. Eventually the markets broke down and now the earnings season is in full bloom. Markets broke 200D SMA for DOW and we are closely watching the 17700 level now as resistance and 2070 for the SP500. VIX is elevated and we have to be on our toes. 

We had earnings report from Micron, which were lower than forecast and their outlook was grim. AMD re-enforced the slowdown in the PC markets and we expect the same from the overall semi sector. We stated to go short INTC or SMH and overvalued stocks such as AMBA, SWKS, NXPI and AVGO. We believe INTC buying ALTR was a desperate move from INTC and they paid a hefty premium for this. And as did AVGO buying BRCM for a hefty premium. There is no questions there is a major slowdown in this sector and we do not expect any major driver for this sector. Overcapacity is a definite issue and the phone markets are getting severely saturated in China and India.

Some good reads from this and the past week:

http://www.marketwatch.com/story/why-beijing-cannot-let-its-bull-market-die-2015-07-05?siteid=yhoof2

http://finance.yahoo.com/news/zeroing-empty-homes-china-throws-developers-lifeline-210739138--sector.html

http://www.zerohedge.com/news/2015-07-04/feds-full-normalization-will-crush-casino

http://www.zerohedge.com/news/2015-07-05/volatility-confusion-reign-pboc-intervenes-chinese-stocks-surge-then-tumble

http://www.zerohedge.com/news/2015-07-06/tumbling-futures-rebound-after-varoufakis-resignation-most-china-stocks-drop-despite

http://www.zerohedge.com/news/2015-07-05/hillary-ropes-everyday-reporters-creates-media-spectacle

http://www.zerohedge.com/news/2015-07-05/china-crosses-rubicon-stock-bailout-bofa-says-pboc-risks-hurting-its-credibility

http://www.zerohedge.com/news/2015-07-05/nightmare-euro-architects-coming-true-jpm-sees-grexit-base-case-split-eurogroup-comi

http://www.bloomberg.com/news/articles/2015-07-05/china-brokers-dust-off-wall-street-s-playbook-from-crash-of-1929?cmpid=yhoo

http://www.huffingtonpost.com/stacey-alcorn/inside-the-tank---mr-wond_b_7726504.html?ncid=txtlnkusaolp00000592

http://www.bloombergview.com/articles/2015-07-02/china-s-boom-has-world-bank-worried?cmpid=yhoo

http://www.bloombergview.com/articles/2015-07-04/ritholtz-s-reads-401-k-s-are-horribly-flawed

http://www.fool.com/investing/general/2015/07/01/greedy-drugmakers-change-could-be-coming.aspx?source=ihpsitota0000001&lidx=2

http://finance.yahoo.com/news/big-banks-spending-even-more-than-vcs-on-future-of-finance-145337246.html

http://finance.yahoo.com/news/chinas-stock-market-crashing-chinese-095900183.html

We are long BIDU,CYBR with covered calls written and short INTC,SWKS,AMBA. We went long WBA today for a short term trade. 

We recommend that you hedge your positions by buying some put protection and selling some covered calls. 

Check out some new features on our site and help us spread the word - we rely on word of mouth advertising - we focus our funds on driving development of our site. 

Here are some charts for DIA, SPY, and QQQ - weekly: 

 

Keep an eye on 50 week SMA for all the above symbols - these are critical support. In addition, watch IBB to see if it closes this week below 13 week SMA - if it does - it is ripe for a short.

Best of luck trading.

Trucharts team.

Greece Referendum - How will markets react this week? Trucharts.com Blog - week ending 6/26

Greece Referendum - How will markets react this week? Trucharts.com Blog - week ending 6/26

Well looks like our call on the weakness in the underlying fundamentals of the markets are finally coming to fruition. Earnings from ORCL (ORCL chart), Micron (MU Chart) were pointing to a slowdown in the tech sector - which we alluded to in our blog. 

We stated to take profits and hedge your positions with covered calls or puts a month out for a strike price 5% to 10% below the current prices, for some protection to the down side. INTC - chart below (weekly):

As you may have read in the news INTC is planning layoffs and with the MU news of slowdown in the PC sector we expect that INTC will very likely state the same. The ALTR buyout was primarily to fill their old fabs and they paid a hefty price for ALTR. Seems like a sign of desperation. We will be shorting INTC tomorrow.

Then this weekend we have the news from Greece calling for a referendum. We think the Greek leaders are doing the right thing and letting the people of Greece decide the fate of the country. The creditors are not happy but the choice of cutting back benefits/pensions significantly and hurting the people of Greece is not to be left in the hands of the a few politicians and the Germans. We will have to wait and see how Greece exits the Eurozone - we think they may have already made that decision.

We expect volatility in the markets this week - we alluded to the topping nature of the markets for the past few weeks and how the weakness in the individual DOW component stocks, transportation stocks as a sign of topping behavior. Here is the chart for SPY and DIA (weekly) - notice the weakening technicals (RSI, Moving Averages and MACD) - SPY has not closed below it's 13 week SMA - Chaikin Money Flow is still positive - the next two to three weeks are critical and we have to see if the SPY can hold or bounce of the 50 week SMA. We also stated how the markets have been playing the round number games with the Dow Jones 18000 level, SP500 2100 level and 5000 for the NASDAQ for the past 6 weeks with three digit moves every week.

SPY Chart:                                                            DIA Chart:

SPY support at 208 and DIA support at 177. Here are the daily charts - keep an eye on the moving average support lines:

 

What to do this week:

1. It is going to be a shortened trading week very likely with low volumes going into     
    the weekend because     of the 4th of July weekend.

2. Sell some covered calls and buy some protection - we are heading into earnings      
    season.

3. Take some profits as we stated earlier - nobody is going to complain or regret 
    locking in some profits.

4. Watch critical support levels for your stocks - you can do this easily with our charts 
     support resistance option on the stock charts page.

Our positions: Long BIDU, CYBR, Z, - short INTC/AMBA. All positions hedged with calls and puts.

On another note here is the chart for IBB ETF (Biotech stocks) - just see it's support level at the 13 week SMA - unbelievable.

We added new features to our site - a quick chart box on the home page and a new chart skin color scheme on the stock charts page - check these out - nice new features to have. The charts we are showing are with the new color scheme.







Some articles for good reading:

http://techcrunch.com/2015/06/26/the-tech-industry-is-in-denial-but-the-bubble-is-about-to-burst/

http://www.businessinsider.com/stock-market-is-a-petri-dish-2015-6

http://www.nytimes.com/2015/06/27/business/international/chinese-stock-indexes-plunge.html

http://www.zerohedge.com/news/2015-06-27/bad-breadth-milestone-warning-stocks

http://www.zerohedge.com/news/2015-06-27/chinas-370-billion-margin-call

http://www.econmatters.com/2015/06/chinese-stocks-how-to-think-like.html

http://www.zerohedge.com/news/2015-06-27/desperate-china-cuts-key-policy-rates-after-stock-market-crash-its-just-1987

http://finance.yahoo.com/video/risky-buyers-making-comeback-housing-233326345.html

http://www.zerohedge.com/news/2015-06-28/ecb-says-greek-bank-holiday-now-necessary

http://www.zerohedge.com/news/2015-06-27/moodys-fitch-fret-over-billions-student-loan-abs-defaults-loom

Positioning your portfolio - Summer 2015 and Markets Direction - Blog Trucharts.com

Trucharts.com - Market positioning and where markets are for the summer - Blog Update for Week ending 6/19/2015

Well we guess by now you are all used to the volatility and jerky moves in the markets for the past few weeks. Markets that move sideways for a long period of time are either topping, consolidating, and what we call confused markets. For the past several weeks, we have been seen these wild 3 digit moves up and down and primarily the markets holding the 18000 for the DOW, 2100 for SP500 and now 5100+ for the NASDAQ. This has been occuring every single week. The Russell 2000 hit a new high as did the NASDAQ and everyone is ready to party like its 1999. 

Market pundits are trying to justify why the market valuations are low compared to 2000 - but some of their points sound absurd. Granted there are companies with good earnings and low PE ratios - but these are few and far between. Zero rates from the Fed, market speculators, big firms and heavy stock buybacks are the reasons driving this market and we have shown several examples of charts that look like exponential chart patterns. With everyone chasing performance and yield, stocks have been the only game in town and therefore we are seeing astronomical valuations for many companies - especially in biotech and stocks that are up for no reason (check the charts for stocks (for last 7 years period) like UHAL Chart; SHW chart; AMBA chart; IBB chart; REGN chart and many others. 

Here are the charts for DIA chart, SPY chart, IWM chart and QQQ chart from the week ending 6/19. You can see the DIA and SPY have not broken out yet and based on the market internals, we are seeing some fundamental weakness in the Industrial stocks, Utility stocks and the individual DOW component stocks - just check here the DOW 30 stocks with the mouseover charts feature: here is the link - DOW 30 stocks - check each chart and you will see how each of these stocks are doing currently.  

As we write, futures are up as Greece is trying to avoid printing drachmas and stay within the Euro zone. This is like the never ending story - it is like a soap opera - with the Greek Prime minister and the finance minister playing lead roles and the Germans are getting tired of it - but do not have a choice but to deal with it.

What should you be doing now: 

We would take a very defensive posture here and take some profits in profitable positions and sell some covered calls, and to protect downside risk with buying some puts on your positions - maybe 10% below (strike price) the current price - these are cheap, knowing that the volatility (VIX) is low and the puts would be cheap insurance. We typically hedge our positions as long and short and try to keep our portfolio balanced. We definitely still think there is risk here on the downside. 

NASDAQ is being hitting new highs primarily because it is being driven by the biotech stocks. These stocks may still go higher, but as they do, so does the risk. In addition, many new IPOs are healthcare related and biotech focused. We would be wary of trading these - unless you have the stomach or risk profile to handle volatile stocks. 

From a stock perspective, we are long BIDU, CYBR, Z, TWTR - we like MO, PM here for short term trades. We missed BTI at 104 (major support). We are short AMBA, and INTC.    
Here is a recap of some of the interesting articles we liked and have provided the links here:

What is the meaning of a "dry-bubble" to VCs?
http://www.zerohedge.com/news/2015-06-17/silicon-valleys-fantastic-dry-bubble

China bubble news:
http://www.zerohedge.com/news/2015-06-20/so-you-think-you-are-rich

California Drought:
http://www.zerohedge.com/news/2015-06-18/california-has-never-experienced-water-crisis-magnitude-%E2%80%93-and-worst-yet-come

TSMC and AAPL news - very interesting read and outlook on semi stocks:

http://blogs.barrons.com/asiastocks/2015/06/18/even-apple-cant-save-tsmc/?mod=yahoobarrons&ru=yahoo

Till next week. 

Good luck trading.

Watch these charts closely this week..

Trucharts.com Blog Week ending 6/12/2015:

Watch these things and charts closely this week..

We did not have a chance to write a complete weekly blog last week due to some family emergencies. Finally got over these and now back to writing and watching and trading the markets this week. 

We are sure you must have been noticing the past few weeks how the big market players have been holding the DOW at 18000, SP500 at 2100 and the NASDAQ at 5000 - rigging - you have to wonder. Every week (for the past six weeks), there has been at least one day a week for a positive 3 digit move in the markets and then we have several - what we call - consolidation days - and then we have had news on Greece everyday impacting the moves in the indices. It is becoming like a same story different day.. Still there has been no resolution on the Greece situation, and then we are seeing some news today that the Greeks have not come forth with a solution that pleases the IMF and the Eurozone. Let us see how this unfolds.

Now back to our markets and China - an amazing bubble brewing there in the markets. A billionaire is made everyday and the three drop out due to improper financial conduct by their respective companies - just take a look at Hanergy as an example. 

We think the underlying fundamentals are weak and many stocks are exhibiting weak technicals, and in addition, we think the tech stocks are looking weak. We strongly recommend taking profits in this sector.

Here are some charts from our markets we are watching closely this week. Keep an eye on the 13 week SMA, the 50 week SMA and the 100 week SMA. Amazing support levels for all the ETFs below.

Charts Weekly: 

Check the chart for:

CVX at critical support - we think this could go to 90.
DIA going to 50 week SMA?
IBB at 13 week SMA - still looking good - still not closing below 13 week SMA.
IWM - Russell 2000 ETF - still strong
MMM - heading to 50 week SMA - should be a good buy point for a bounce
SPY- at week SMA - great support here.
TXN - at 50 week SMA - looking weak - may bounce here
XLK ETF - technology starting to show weakness. (See INTC chart below)

 

 

 

 

 

We are long BIDU,CYBR,TWTR,Z, and short AEM,AMBA. Closed DTEA, LLY and UA this week for a good profit.  

IPOs to watch this week: Fitbit - Wednesday - FIT.

Critical earnings this week:

Adobe Systems (ADBE), FedEx FDX, Oracle (ORCL), Darden Restaurants (DRI), Kroger (KR), CarMax (KMX), and KB Home (KBH), DTEA on Tuesday.

Check out our special subscription offer - just $90 for the whole year. The best deal of any technical and stock charting website on the web. Here is the link: 
http://www.trucharts.com/truCharts_Services.aspx

Check out the results of our backtest feature - the fastest on the web: This is for IBB ETF with a 8 SMA crosses 12 SMA and exit is 11 days after crossover - the short needs to be optimized - but the long strategy shows a 174% return.

Keep an eye on these stocks and charts!!

Trucharts.com Blog Brief Update:

For SEO:  
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Here are some stocks we like and are long and also keeping a close eye on:

Jobs reports was strong and USD is moving up and treasuries are dropping and yields are moving higher. Gold down - we are short AEM.

1. DTEA - went IPO today - we are long
2. UA - breaking out of a base - challenging NIKE
3. CYBR - we went long today
4. TIF - like it  - but closed this position
5. BIDU - love this stock 
6. QIHU - looking good for short term trade and China momentum

Charts to watch for SPY and IBB - check the 13 week SMA and 50 week SMA:

Markets Direction - Up or Down? Where are we headed? Trucharts.com Blog Update

Markets Direction - Up or Down? Where are we headed? Weekend Blog Update week ending 5/29/15

We have not had a chance to do a weekend update due to the jet lag from travel and other pressing matters. Finally getting some time to put my thoughts down related to the markets from the past 3 weeks and heading into the summer session.

Well NASDAQ hit a new high, markets moved higher and many earnings were reported. Avago bought Broadcom - a $37B acquisition (we think they paid too much - almost 5.5x sales) and then we have Intel buying ALTR this week - from an earnings we had HD, LOW and many other companies that reported earnings in the past couple of weeks. ULTA also reported but the stock reversed after reporting its earnings as did HD. There is talk of additional mergers in the semi company space - here are the companies that we think are ripe for consolidation - MXIM, IDTI, TXN, SLAB, MCHP, ADI, NVDA, AMD, SWKS, MRVL, XLNX, AMBA and probably many others we are missing.  Keep an eye on these stocks. NXPI, AVGO, INTC and other big semi companies would be possible acquirers. With the AVGO and BRCM merger - the merged company will be the 3rd largest semiconductor company after INTC (1) and QCOM (2).

Our drug stock picks LLY, MYL and TEVA still holding strong. The biotech sector has been holding the NASDAQ up and we expect that this sector will eventually fall - we just cannot predict when - there is technical weakness in the ETFs in the biotech sector.

We are very concerned about the underlying weakness in the markets - structurally. We are seeing many stocks breaking down in the DOW and S&P500. In addition, stocks are reversing after reporting earnings - check HD, ULTA. Housing stocks are dropping - indicating that the markets are anticipating rate hikes from the Fed. We think the Fed sees an asset bubble and are being left with no choice but to start raising the Fed funds rate. Housing prices are moving up. unemployment is down to 5.3%, homes on the west coast are selling at prices higher than asking - and this has been the longest period for the rates being at near zero - now close to 6+ years and over the past week we posted an article on FB and G+ where Byron Wein discusses how the Fed has pumped over $3T into the markets - we concur. And then we see this article over the weekend:

- http://finance.yahoo.com/news/robert-shiller-bubble-element-were-140322037.html 

All these are pointing to over valuation in the markets and the complacency is remarkable. The VIX was down last week and we expect this to spike higher in the coming weeks. We stated that we would take profits here and hedge positions with calls and puts. Adding some shorts is in our plan for the coming week.  We are long BIDU, TWTR, Z (all hedged with covered calls) and are looking to short MSFT, and possibly IBM. 

Just take a look at the stocks that popped on our sell signal strategy here:Just sort the page by volume from highest to lowest by clicking on the volume column twice: 

http://www.trucharts.com/FilteredStocks.aspx?ConditionId=8174,8175,8176

Watch for our regular daily posts and positions updates on Twitter and FB.

Again - watch the Greek situation, China stock bubble, and sell here to take some profits and wait for a better opportunity.

Good luck trading. Check out our special subscription rates and we offer the best feature set on the web for our lowest subscription rates - here is the link: 

http://www.trucharts.com/truCharts_Services.aspx

Do checkout our backtest feature - it is the fastest on the web and ummatched by any site.

Link is: Backtest feature - play with it and you can use it to try some paper trades.

Please help by spreading the word of our site.

Trucharts founder and team

Stock Market 5/28 - Midday Update Tuesday - Trucharts.com -

Midday Market update: 5/27

Stocks are bouncing back from the drop yesterday post Memorial day holiday from a possible buy the dip philosophy and possible Greece solution. 

We doubt this move/rally and would look to sell into rallies and take profits - NASDAQ is up from the biotech stock moves and some tech stocks. We like $DE, $BIDU and went long $TIF today. Stocks getting hammered are $WDAY, $KORS and $SHAK.  We like $MO and the tobacco stocks for their dividends and would look to go long. Short gold for now.

Markets look extended still and volatility is still low. Oil is dropping. Watch SVXY and VXX.

BIDU and TEVA update

Updates on our picks - Trucharts.com - 

Stock Chart(s) Free - Trucharts.com - MACD Chart - Charting, Technical Analysis, Hot Stocks, Real time Stock news:

We had picked BIDU and TEVA yesterday - both of these are up today - BIDU is up over $3 and TEVA is up over $1.25. We expect markets to be volatile next week post Memorial day weekend. We would sell into rallies - take some profits here.

Trucharts Team

Where are the markets headed - UP or DOWN?

Trucharts.com - Blog Update - Week ending 5/15/2015

Where are the markets headed - up or down??

We were unable to publish our blog for week ending 5/8 as we were in China due to blogging restrictions. We are going to summarize the market events for the last two weeks and provide our outlook for the coming weeks and thoughts on some trading.

Well we noticed a pattern during the past two weeks - markets would be sluggish during the early part of the week and then ramp into the end of week trading - week of 5/8 we had a huge move on Friday and last week the big move occured on Thursday. Bonds which have been crushed for the past few months (see TBT chart below) bounced back and it is currently oversold and we expect TBT to move up to its 50d SMA. This will lead to a drop in yields in the coming weeks and interest sensitive stocks should move higher - housing stocks like DHI and LEN to move higher. Markets moved higher on Thursday due to the lower retail number print and the jobless claims number. The markets are totally schizoprehnic - every data point is like a tug of war between the bulls and the bears - but we think the bulls are winning.

The indices like S&P500 brokeout to a new high last week and we expect the move higher. Check the charts below for DIA, SPY, SVXY and TNA. With the Fed pumping money into the economy and staying on the sidelines with the low or ZIRP will drive stocks higher. The Fed is stuck in a corner and we have been saying this for weeks. There is internal strife within the Fed governors and there is lot of jawboning going on the interest rate hike front. This is creating a stable trading environment in stocks - we especially like the drug stocks and stocks with weekly option expirations. The NASDAQ moves are being dictated by the biotech stocks. We expect the biotech ETFs to move higher here - these have still not closed below the 13 week SMA.

Our USO position closed on Friday, we are looking to go long BIDU,TWTR. Oil did bounce back and is back at being above $60. Gold rallied and we expect a pullback. The Greece situation has been nothing but noise. Eurozone economies did well due to the pullback in the Euro, but the markets saw a pullback last week. China is in a bubble and will not end until everyone is loaded up - there is a billionaire being made every week - reminds us of the 2000 Nasdaq tech bubble. 

We are still long MO,DNKN,BIDU and we will close our BOX position this week.

ISEE C/P ratio hit a new 52 week high on Thursday - it recorded a reading of 228 and that means over 2.2 calls were being bought for every put. This typically points to a higher market. Hedges are cheap now as volatility is low and we recommend buying some SPY puts and or puts for your positions at 10% below for 30d out timeframe.

Checkout our backtest article we posted last week for our site and also check out excellent subscription rates for full access and it is currently discounted at 50% for one year access - here is the link - http://www.trucharts.com/truCharts_Services.aspx and we would really appreciate if you can spread the word for our site - and create a buzz - we know we have one of the best stock charting sites on the web. We have updated our home page and are still adding features daily. Check these out and send us your feedback - support@trucharts.com - your feedback is so critical to help us improve our user experience. 

Closed EEM short.

Here are some articles for some good reading this week. 

http://www.zerohedge.com/news/2015-05-16/what-goldman-telling-its-clients-sell-may-and-dont-come-back-one-year

http://www.zerohedge.com/news/2015-05-16/one-gauge-investor-sentiment-just-hit-6-year-high

http://www.zerohedge.com/news/2015-05-17/presenting-77-billion-p2p-bubble

Here are the charts we are watching this week:

 

 

 


Good luck trading. 

Trucharts Team