How long will the YEN dominate this market?

The past 2 trading days we saw massive selling in the markets! This sell in the stock markets is lead by the $FXY. Now at some point the YEN will pull back, and this will provide a few bounce days in the markets. Will it remain forever? Probably not! The markets are way overbought and once fear will kick in, the markets will see a flash crash!

Traders are always scanning a lot off charts to see what you can buy or short. You always try to get multiple factors in your trades! Like these $QQQ charts, if we can see another massive down day this will come into gap fill with the daily 50 moving average! This can be a bounce play for a few days!



Long area around $71.29 stop loss will be $2.

Kristof De Block

Is it almost time to get back in some home builders? $O

The past few months we saw a large run in the home builders. Since last week, we saw a massive decline in these stocks! Pro traders will always analyze a chart before they get in! Most amateur traders will have bought this $O probably around the top. Now the chart is coming into some good support.

If you take a look at the daily chart, the decline from the heights is almost 20%! First significant support that I see will be around $45.50 pierce of the 200 daily moving average. I won’t get a massive position because it’s a falling knife at this point, but if this support level will hold we can see some short covering. My first goal will be a bounce back to the 47 dollar level.


Kristof De Block

Is Apple a safe haven these days? Apple’s potential target $550

The past weeks we saw how apple is trading inverse with the markets. The daily chart is forming an inverse head and shoulders pattern.

These days apple is more like a safe haven. The past weeks I see that Apple is selling when the markets are going higher, and when the markets are going down apple is going higher. People take apple as a safe stock. Now the daily pattern is pointing out a potential inverse head and shoulders pattern. Is it time to buy apple already? No, I will wait until the pattern triggers. Upside target on apple will be $540.

Watch apple the coming days and see if we can close above the neckline! Stop loss on the trade will be a close below the neckline.


Kristof De Block

Where will you buy Facebook?

The last couple weeks we saw a massive decline in Facebook. It is now trading 6$ lower from the recent heights. This is a massive reversal. Now why is Facebook selling? Well facebook pays no dividend and people keep on buying high dividend stocks right now. Will this hold forever?

At some point,  these high dividend stocks will stop running! People will pull their money out of these stocks into other low floaters! I am looking to take a small long position into Facebook around $22.73.

I am looking for a bounce back to the 200 daily moving average, and my stop will be a close below $21.00.



Safe trading

Kristof De Block

Weekly market outlook: How long will the FED control this market?

Last week we saw a powerful reversal on Wednesday, also last week the Japanese market sold off extremely sharp. Today we got a holiday in the US. Where will this market go this week? I see some more downside in these overbought markets! Everyone is so bullish out there and markets can’t come down! Yeah right once the panic selling will kick in, we can see another flash crash!

Normally we will see a holiday hangover type day where the markets will go sideways. The Nikkei was down again -3%. Will this puts some pressure on the US markets?

The daily SPY is still at support, it’s just trading above the 20 moving average. But once we can close below this small support area, we can see a quick flush to the 50 daily moving average. This will be the first significant support on the markets!

Keep your eyes on the financial mastodons like JP Morgan ($JPM)! Wednesday we got a topping tail on the daily $JPM chart. This tells us that we can see some more selling in the financials this week. First support level on JP Morgan will be the $51.00 area.



Safe trading

Kristof De Block

How long will "buy the dip" hold?

For weeks, we see the same in this market, a drop and pop. Simply explained buy the dip! How long will the amateur buyer do this? Yesterday we got a real nice reversal day in the market! Today we gapped lower, and then the open buyers came into this market. Around 10.30H when the volume is extremely light, it’s easy for them to push the market higher on low volume.

What will the outlook be for tomorrow? It will all depend on how Japan will trade tonight. Yesterday Japan closed down -7%, so my expectation is that the index will close higher tonight based on how the US was trading today. For tomorrow, I will expect a low volume pre-holiday day, so a light volume float higher.

Let’s go over the $Spy day trading levels for tomorrow. First resistance will be at the 200 moving average $166.60 and then $167.20. Support for tomorrow will be $164,00 and $163.54


Kristof De Block
Stock-Hunter.net

Will today be the top for 2013? $JPM Short signal!

Today we finally saw some action in this silly market! Grinding higher for the last weeks, every day we saw new heights and today the gates went open. I was short on the $SPY on the pierce at 169.00. In 10 minutes I grabbed 1$ profit on the $SPY, now that is day trading! Know your levels and just trade them.



Let’s go over to one off the strongest stocks $JPM. The daily chart is extended from his 20ma. People are buying this stock up, therefore we have 8 days of upside in $JPM. Is it overbought? Hell yeah!



How will I play $JPM on the short side? As of now we can see a topping tail on the daily so it will all depends on how it will close at 16.00H. If we close below 53.72, we have a topping tail. I will take a ½ position at the close, and if we see a retrace tomorrow I will take my finale position.



Where will the stop out be on this trade? Any close above the topping tail high will be a stop out. First target from this trade will be 51.00 and then the 50 moving average.



Safe trading



Kristof De Block