Beware Of Dead Cat Bounces

What is a dead cat bounce? It is simply a rally from a very oversold condition. That's the case today as many of the markets have literally gone straight down in the first weeks of 2016 and contributed to the worst start of any year in the history of trading.

A dead cat bounce does not mean a trend change or that you have made a major bottom in the market. Technically, a dead cat bounce is really just a short covering rally from a market that is very oversold. If and when the major indices are going to reverse the trend and move back up, they are going to have to do quite a bit of repair work to change the negative technical picture that we are currently facing.

After the close today Netflix.com Inc. (NASDAQ:NFLX) will report earnings - the current technical picture for this stock is mixed. The longer-term trend for Netflix is positive with a green Trade Triangle in place. However, the intermediate-term trend is down with a red weekly Trade Triangle. I would suggest standing on the sidelines at the moment. Continue reading "Beware Of Dead Cat Bounces"

It's Not Over Until It's Over And It's Not Over Yet

This is a week that many investors would like to forget. It's the worst beginning of the year for equities since records have been kept.

Investors, some of whom are shell-shocked, are asking themselves, what should I do? Should I be a buyer here? Should I sell everything or should I just remain on the sidelines?

In today's video, I will be sharing with you some interesting views of the major indices that you may not have heard before. I will also be examining six big stocks that aren't so big anymore and what you should or should not be doing with them. I will be looking at gold which has done very well this week and predicting where I potentially think it can go.

Here's a list of the markets I will be covering today: Continue reading "It's Not Over Until It's Over And It's Not Over Yet"

The Big Rotation In 2016

Hello MarketClub members everywhere! As we start this trading week, I feel we are at a potential crossroads of some major changes in the markets. As you may remember, 2015 has been a no-go year for stocks and it would appear as though we have built a very large top in the equity markets for the time being.

Just as stocks have gone nowhere in 2015, gold appears to be building a base and ending its 4-year bear run. I am going to be watching that market very closely this week and in the near future. If gold moves over the $1,088.55 level this week, buy and hold it until the next weekly Trade Triangle signal.

So, what do I mean by the big rotation? I think we are going to see people move out of stocks in 2016 and transition more into assets like gold and secured short term interest bearing instruments. Continue reading "The Big Rotation In 2016"

Time To Buy Twitter?

Hello MarketClub members everywhere, I thought that I would take a look at a stock that's been in the news and that everyone has heard of. The stock I will be looking at today is Twitter, Inc. (NYSE:TWTR) which announced yesterday it would trim its workforce by up to 8% which meant they would be laying off 336 employees.

This once darling of the tech world has seen its stock price consistently move lower since its IPO when it traded a short time later up as high as $74.73 on December 26th, 2013. Since that time, Twitter has seen its influence and stock price steadily erode with the stock price hitting a low of $21 this past August. Continue reading "Time To Buy Twitter?"

Starbucks, Netflix, Gold and A Whole Lot More

Hello MarketClub members everywhere! I have a lot to cover today, so let's get started right away.

Starbucks gave a major buy signal yesterday. I have talked about the $59.50 area as resistance and that barrier was breached with Starbucks Corp. (NASDAQ:SBUX) closing at an all-time high. I guess that means that our morning cup of coffee is going to go up as well.

Netflix.com, Inc. (NASDAQ:NFLX) announced a one dollar increase in its most popular plan. Some say this is a gamble, but the reality is, most consumers are not concerned with a one dollar increase and a price tag of $9.99 for unlimited entertainment. Continue reading "Starbucks, Netflix, Gold and A Whole Lot More"