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DIA

S&P 500 Next Week Expected Move ($34) & Gravity PointsNo call again... been a pretty directionless last 3-4 weeks. SPY $300 right around the corner. VIX got totally rejected. Sell in May and Go Away articles coming out. Buffett interested in Amazon GDP was 3.2% Unemployment Strong. IPO's coming out. Uber Next week. Smallcaps looking like a bit of a breakout, waiting to see if it's sustained. But would be very positive if there's continuation. Goodluck next week gentlemen - RH
CME_MINI:ES1!
by RHTrading
3
Time to Accumulate MylanShares of generic drug manufacturer Mylan has become very attractive, especially after today's overdone selloff. While the company has some hurdles legally (what drug company doesn't?) and has some internal housekeeping to tend to, the shares are becoming too cheap to pass up. At the time of writing, shares are trading at $23.30, down about 17% on the heals of it's latest earnings report. I don't believe this sort of selling is warranted but it gives value investors an attractive entry point to begin accumulating shares. It's blown thru supports, such as the 61.8% retracement (dark blue line) of a multi-year climb higher and some previous major resistance-turned-support levels (white dashed lines), which I've left on the chart for reference. The recent bounce gave some extensions to use, but today's selloff has pushed shares right past the first one, the 127.2% extension at $24.39. The next extension, the 141.4% at $21.75, is interesting because it coincides closely with the 78.6% retracement of the aforementioned multi-year swing higher at $20.63. Should those fail, we have one last extension to target, the 161.8% extension at $17.95. In essence, I'm buying a starter position today and will be adding if it dips to the lower levels, which really should be viewed as a major support zone between $18 and $21. With so many patents expiring for blockbuster drugs, Mylan will soon be able to pump out cheaper generics of them and they have an excellent track record of cranking out pills that are in demand. It'll be important to watch the headlines on this one, as there are legitimate concerns, but with P/E's at 5.3x next years estimates and 5.0x 2020 estimates, this is just too cheap to ignore. Be sure to have a game plan, including a stop loss appropriate to your risk tolerance (say, a back-to-back weekly close below $17.95, or a percentage you're comfortable with like -10%). Once I see some sustained uptrend taking place, or a major change in my thesis, I'll let you know! Until then, happy trading!
MLong
by EchoAlphaBravo
Bullish H&S in 3M Corp. Shares of MMM look to be forming an inverse H&S pattern that looks it could be a favorable setup for the bull camp. It's deeply oversold with an R.S.I. reading of 22.9 and is holding the neckline support, so I think it's headed higher. Shares are in the buy zone right now at $185, which is the neck of the pattern. Look for minor resistance around the gap down at $197-200. I doubt this will pose much of a challenge for the shares, although it may provide another buying point. Major resistance comes in at the target of the pattern at $218-224, which I believe will be reached prior to the next earnings release on July 25th. Set your stop-loss beneath the head, around $177-179. That gives you a nice risk-reward ratio... -$8 (-4.3%) to the downside and +$39 (+21.8%). That's a 5.1:1 bullish ratio. I'm a buyer for sure!
NYSE:MMMLong
by EchoAlphaBravo
1
DIA IndecisionIndecision in the Market right now. Bear Case: *Multiple failed attempt to break resistance *Head and Shoulder formation *Broken wedge up *Lack luster volume *Bearish divergence on RSI ***Motivation for break lower : recession fears Bull Case: * 50 MA broke back above 200 MA * Price holding above those two MAs * Symmetrical Triangle engulfing the H&S (Larger pattern usually plays out) * Possibly a bull flag forming (look at it in the weekly) ***Motivation for break higher : Trade deal ****Personally, I think we break lower... Let's talk about it!
AMEX:DIAShort
by PartTimeGenius
2
SPY Next Week Expected Moves ($52) + Gravity PointsLast week's call had me nervous for a second there. A very chaotic week, but I had several opportunities to put on a couple positions. Hats off to anyone who waited for that upper expected move. (two opportunities) Large expansion for the expected move from last week to this week = expect volatility to pick up. Couple quick notes: - 10 yr / 3 mo yield inverted. You now are paid more to buy a 3 month bond than a 10 year bond. Fundamentally this makes no sense because you should be compensated for the additional risk of loaning your money for longer periods of time. Ill share some of my excel doc data of different yield curve pair inversions for the 10/3because it's so important: ---> 10 yr / 3 mo yield inversion time prior to next Recession: Average = 13 Months ---> S&P 500 Peak to start of recession percentage gain/loss: Average = -13.3% Median = -13.5% (Most losses happen prior to official recession) ---> S&P 500 percentage gain/loss during Recession: Average = -1.3% Median = 6.7% ---> Number of Months from Peak to Recession: Average = 8.7 months Median = 8.5 months ---> Number of Months in Recession: Average = 13.5 months Median = 10.7 months ---> Recession Start to S&P 500 Trough: Average = 8 months Median = 5.3 months - Powell signaled to the market that the economy is weak - Germany slowdown bad Friday morning manufacturing report - China slowdown - Brexit delated but nowhere near resolved Best of luck next week gentlemen - RH P.S. Wish me luck on my Series 7 exam on Friday next week!
CME_MINI:ES1!Short
by RHTrading