Tag: The Relative Strength Index (RSI)

Pigs no Longer Fly; What Are the Implications?

Posted on by admin

Along with the highly publicized loss of leadership from big tech, the US stock market is now in danger of losing another, and possibly more important leader, the piggies or banking sector.

While the weekly chart of BKX has not yet broken down, it is very close to doing so after sporting a negative RSI divergence for the better part of the last year. We should not jump the gun with bearish scenarios, but as always we want to be among those looking forward and ready, just like in 2007, which was the last time BKX-SPX began to roll over in earnest.

bkx

NFTRH has followed the BKX-SPX (leadership) ratio every step of the way during the current leg of the cyclical stock bull market. Most recently we noted that BKX-SPX failed to make higher highs on two occasions. This put the ratio – and by extension the stock market – on alert as we watched for a lower low.  Ladies and gentlemen, let me introduce you to a lower low. Continue reading "Pigs no Longer Fly; What Are the Implications?" →

Is The Gold Move Over?

Posted on by The INO.com Team

I have had a number of requests to update my January 3rd special report on gold. Since that report, gold has rallied $150 from the lows that were seen in late December 2013.

On January 3rd, I outlined what I thought was going to happen to Gold (FOREX:XAUUSDO) and I was very happy to see that scenario play out for both our members and myself. Since that date I have seen a number of factors play into the market, the biggest being the events in the Ukraine right now.

One fact I wanted to share with you, which I found surprising and did not know, was the fact that Indian housewives hold 11% of the world's gold. That is more than the reserves of the USA, IMF, Switzerland and Germany put together. Now, there’s a bit of trivia to impress your friend with. Continue reading "Is The Gold Move Over?" →

Will Groupon, Inc. (NASDAQ:GRPN) Miss Earnings?

Posted on by The INO.com Team

Today, I am going to analyze the stock of Groupon, Inc. (NASDAQ:GRPN).

I am sure, like me, you've received emails from Groupon offering all kinds of special deals on meals, massages, auto detailing and so forth. It seems they come all the time and to be truthful, I have yet to take advantage of any of the deals Groupon offers.

I was curious and decided to look into the world of special offers from the other side of the table, so to speak. I checked with some of the merchants who are offering these deals or who have offered these deals in the past and asked if they would do it again. It seems that the experience, while novel at first, was not necessarily a positive one for all merchants. Many merchants found that people would respond to their offer, come once, and not return. So where is the upside if you're a merchant and you're selling at perhaps a breakeven price or loss? What's in it for them? Yes, you can chalk it up to advertising, but like any advertising if it doesn’t work for you, don’t go and do it again and again. I'm not sure if the Groupon model can continue if merchants begin looking at the numbers and deciding that this approach is not such a great deal anymore for them.

Let's take a look at the stock itself and see what it has been doing over the last couple of years. After dropping down to a low of around $3 in November of 2012, the stock moved steadily higher in a very optimistic and bullish climate in 2013. After hitting a high of just over $12.50 last September, the stock once again dropped below $9 before recovering to around $12 a share. Continue reading "Will Groupon, Inc. (NASDAQ:GRPN) Miss Earnings?" →

The Perfect Valentine's Day Gift

Posted on by The INO.com Team

Time is running out, are you still looking for that perfect Valentine's gift for a loved one? If you answered yes, this may be the perfect gift that you have been looking for.

It may not be the little blue box that so many women love, but the stock of Tiffany & Co. (NYSE:TIF) is just as valuable.

As you can see on the chart, Tiffany & Co. was selling below $20 a share back in March of 2009 and since that time this stock has risen over 400%. I think the current climate and chart formation is setting up for this market to have another push into new highs.

There is a long-term trend line that starts back in March 2009 and this line is confirmed in July of 2012 and again in January of 2013. This trend line is significant and should it be broken, it would definitely change the trend of Tiffany's stock. Continue reading "The Perfect Valentine's Day Gift" →

How To Improve Your Trading In February

Posted on by The INO.com Team

Hello traders and MarketClub members everywhere! Welcome to the new trading month of February.

Today, I am going to do something a little bit different, I hope you enjoy the experience and find it educational and informative. To start with, I am going to analyze a static chart of the stock of Applied Materials, Inc. (NASDAQ:AMAT).

In addition to posting a single static chart on the blog, I am also going to be doing a video of that same chart. The video is short, to the point, and explains how I analyze stocks using the tools in MarketClub.

Today's in-depth analysis of Applied Materials shows a confluence of technical indicators that do not add up to a positive outlook for this stock. Remember, any analysis I do at MarketClub should not be considered a recommendation or an endorsement to buy or sell a particular security.

Click the chart to watch Adam's video analysis of Applied Materials Inc. (NASDAQ:AMAT)

There is an old adage in trading that goes like this, "they slide faster than they glide". Translated, that means stocks go down faster than they go up.

Here are the 8 technical aspects that could spell trouble for Applied Materials. Continue reading "How To Improve Your Trading In February" →