The Market Guys

Last week I put out an alert to short Lowes (LOW) if the stock closes below the 20-day moving average. The stock did not close below the moving average so the alert is still in place. The weekly chart (above) gives us a couple of clues that we are getting close to initiating our trade. The first clue is […]

Each and every day, as this stock continues to climb, it becomes more difficult for the buyers to hold on. The drop in volume is a sign that the buyers are losing their momentum but it’s the 20-day moving average that we will be focusing on. Our strategy is to short the stock only after it closes below the […]

Utilities have been a relatively safe sector over the years mainly because inflationary costs have historically been passed on to the endline consumer. However, in this sector the lower risk has been matched up with lower returns. The advantage we have as traders is that we can squeeze out higher percentages as long as you stick to the charts. […]

With the markets hovering around resistance levels it’s been getting more difficult to find any long positions that feel comfortable. This is why I’m feeling good about the VIX. The volatility index is inversely related to the S&P 500 which means the VIX will rally when we see a downturn in the market. View this week’s video »

The video I’ve produced for you outlines the exact instructions for getting into this position, along with the plan for handling the downside risk on this trade. We are using a very straight forward approach. Buy the stock and take a ride for profits. Should the sellers take back control before we are able to realize our profits, then […]

Triangle patterns are a good strategy for the person who is looking for boundaries. They give us specific targets to trade by and the entry points are very clear. The idea is to buy the stock after it breaks out over the upper line of the triangle and set your stop somewhere below the bottom line. I have laid […]

In this week’s Equity Oracle, we take a look at Astex Pharmaceuticals (ASTX). This is a very affordable stock that is bouncing off of a key support level. I’ve labeled the target price around the $2.80 area. Once the stock gets to that point you would sell your shares and move to cash. We are shooting for a […]

If you have been following my reports, you’ll know that one of my favorite strategies is Trading the Gap. Right now we are perfectly set up for a breakout to the upside. The volume was up yesterday, the gap at 12.81 has filled, and now that that gap has filled it displayed a textbook pivot point as the buyers […]

Trading the triangle is one of the safer strategies to use because you are buying a stock after it has shown signs of strength. This is a contingent buy order that is only executed after the stock has broken out of the triangle pattern. Once you have taken a long position, you would then set a sell stop just […]

There are many price patterns that we can find on the candle charts but only a handful are as reliable as the Triangle or Wedge pattern. The idea behind this trading strategy is really very simple. We monitor the battle between the buyers and sellers, wait for one of them to cross the line, then put our money on […]