AMAZ Has Negative Trend and Headed Lower

Check out this video from MarketClub where Adam uses technical analysis to determine AMZN’s next direction.  You will see that long-term upward support level was recently broken in AMZN and is now clearly headed much lower.  He also discusses how much it will fall using Fibonacci Retracement levels.  A good strategy would be to Short AMZN at this time.

Click here to watch video.

Short BEN?

Franklin Resources Inc (BEN) has made a great run to $120 this year before giving most of the gain last month.  Since then, it has made a decent recovery and now sits slightly above $98.  What is the next direction for BEN?

Considering that there is a major resistance level at $100, I would predict that BEN is headed lower below $90.  Having said this, I would consider the current stock market direction.

For example, S&P 500 is currently near its 50% retracement level (1,121).  If this level gets broken, then BEN should continue to rally well above $100.  To mitigate this potential risk upward, it would be wise to SHORT BEN near $100 with STOP order slightly above it, not going higher than $103.  I will revisit BEN later to see where it will be trading in couple of weeks later.

Video: A New ETF Trading Idea

ProShares UltraShort Euro (EUO) just became an interesting ETF to trade right now.  Investors buy EUO to short Euro in respect to dollar.  As EUO increases in price, it mean EURO is declining.  Adam from MarketClub uses Fibonacci to determine a good entry point for EUO in his video.  61.8% rests at $22.59 and so anywhere around this level is a good entry point without too high of a risk.  Are you considering to buy EUO this week?

However, I took a look at daily one year chart of EUO and draw a slightly different Fibonacci using high at $26.39 and low at $16.20 as seen below.  In my analysis, the 61.8% retracement occurs at $20.09.  If this is true, now is not the time to be buying EUO.  Let’s see if EUO starts turning its direction and starts moving higher after $22.59 retracement or if EUO continues to decline towards $20 before turning its direction.

Fibonacci Retracement Levels:
23.6% @ 23.98516
38.2% @ 22.49742
50.0% @ 21.295
61.8% @ 20.09258

APPLE in Consolidation

After making a great run in 2010, going from $190 to $270, AAPL has now settled and has been consolidating for past 3 months.  As seen from the 3 month daily chart below, AAPL has mainly been trading between $240 - $270 range with a “Bull” Trap” occurring at $275.  I do not expect AAPL to be in this state for a long time and thus we should soon see AAPL making another major movement.

I Can't Believe BP is Moving Higher!

British Petroleum (BP) have been having a terrible year so far mainly due to the infamous oil spill in the Gulf of Mexico.  It has dropped nearly 50% with tremendous volume since late April.  BP went from high of $60 to low of $26 in the span of almost 2 months.  However since June, we unexpectedly experienced a rally from its low to currently at $34 as of last Friday.

Video: How Much Will Gold Decline?

Gold is currently retracing towards its long term trend line according to Adam from MarketClub.  He has released another video on Gold and says it is currently in trading range, and there is no strong indication that Gold will be breaking down below its

Should Investors Be Buying Ford Now?

After hitting its low at $1.43 in early 2009, Ford (F) has made a remarkable recovery hitting high of $14.46 in 2010.  Since then, it has given up some of its gain and now trades at $10 per share.

Video: How Much Will S&P 500 Decline?

Adam from MarketClub shares the how much S&P 500 could go down in this short video.  He points out how 50, 100, and 200 day moving averages  are now all converging near 1110 area and how 50 day has now crossed over 100 day moving average.

How Far will AAPL Decline During Market Sell-Off?

Yesterday, S&P 500 finally closed below 1,040.  This is really not a good news for Longs.  The stock market will continue to be negative momentum until it can close above 1,040.  Until then, I