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  1. Shares of Intercept Pharmaceuticals Inc (NASDAQ:ICPT) are hammering on a breakout trend line at $62.50. Should the stock push through, it will likely surge to as high as $66.50, perhaps within a day or two. Definitely a chart investors should be watching. http://www.inthemoneystocks.com/images/posts/Gareth%20Soloway/ICPT12.20.2017.PNG Gareth Soloway InTheMoneyStocks
  2. Shares of Teva Pharmaceutical Industries Ltd (NYSE:TEVA) sold hard in early trading, hitting its lowest levels since 2005. It look like another sad day for investors in the pharma stock, but then something amazing happened. The stock turned around, surging to the upside and turning positive on the day. A reversal like this gets the attention of every technical investor and hedge fund trader. In addition, the stock has already traded big volume, over 10 million by 1:30pm ET. Anytime a stock is making new 52 week lows or in this case, decade lows and reverses in such powerful fashion, smart investors jump on board for a possible bottom play. The upside on Teva Pharmaceutical Industries is big, with a near-term target of $37.50. Investors should be taking note of this reversal on volume. This may be a multi-year low being made with huge upside. http://www.inthemoneystocks.com/images/bryan/TEVA%2005.24.2017.PNG Gareth Soloway InTheMoneyStocks
  3. One of the reasons that traders lose money is because they cannot follow the most important rules. In fact, some novice traders do not even have any rules in place when trading. They are simply relying on luck or tips to make money in stocks. Here are three rules that every stock trader should adopt if they want to have a chance in this market. 1. The 10 Percent Rule. The ten percent rule was made famous by the legendary trader Jesse Livermore. He said that he would never take more than a 10 percent loss on any stock. Whenever he broke this rule and let his emotions get the best of him he really suffered a bigger than expected loss both financially and mentally. A ten percent loss keeps you in the game and allows you to fight another day. I cannot begin to tell you how many times I have seen one trade turn into a huge loss. This giant loss often hurts the trader involved and has even been the cause of many blown up accounts. 2. Do Not Trade With Capital You Cannot Afford To Lose. There is an old saying, scared money never makes any money. Whenever traders and investors trade with capital they cannot afford to lose it hinders their thinking. Trading comes with enough pressure already, but betting the rent or the mortgage on a stock simply affects the traders ability to read or follow that stock's price movement correctly. A good rule is to also apply the 10 percent rule to position size. Never put more than 10 percent of your account into any one stock position. This will allow you to find other trading opportunities should they arrive. All of your capital will not be tied up in one stock. By keeping the position size to just 10 percent of your account you will not have too much of an emotional connection to any one trade. Keeping the stress of trading down is extremely important for your health. 3. Learn To Use And Read Charts. While most of the people in the world will use fundamental analysis to trade (PE ratios, EPS, book value, ect) it is the charts and technical analysis that will show you the actual money flow of a stock. The bottom line, the trend is your friend except at the end. Reading charts of stocks will show you patterns and signal where the money is going and flowing. Remember, it is money flow that moves stock prices not opinion from some talking head on the financial news channel. How many times have you seen a company report great earnings only to see the stock plummet and vice versa? Often, the chart will tell us this will happen before it does. Chart reading will also help traders to place stop losses and know where pattern breaks down or fails. Traders must understand that it is just as important to know where you are wrong on a trade as it is to know when you are correct. Charts do all of these things and more when a trader can read them. Every trader and investor should get educated in reading and understanding charts. Nicholas Santiago InTheMoneyStocks
  4. Cliffs Natural Resources Inc (NYSE:CLF) had a reversal candle on Friday. This would be seen in the strong move up on Friday after the stock made a new 52 week low on Thursday. It often spells a reversal in stock price in the near term and can lead to great profits. Cliffs Natural Resources is a coal stock and is in one of the most hated sectors in the whole market. If you are a contrarian, this is also a positive as Cliffs Natural Resources. Based on the current price action this stock should be on high alert for a buy. Gareth Soloway InTheMoneyStocks
  5. Stocks are trading flat today after a three day rally. The markets have been in a constant pattern of falling sharply for a few days, then a move takes place to the upside that briefly makes a new high on the S&P 500. Then another fall takes place. This is the classic signal of distribution (institutional selling). Large investors slowly selling the market as the average investor is buying. Based on this pattern, the markets should start to pull back in the next few days. A larger breakdown will occur when the S&P 500 takes out 1,835 level on a closing basis. The pumping continues to keep the markets up. This comes from the Federal Reserve as well as large institutions. As the markets were falling late last week, word 'trickled' down that stimulus may be pumped into China, Japan and Europe. This helped the markets recover. Next, early this week Janet Yellen said the jobs market would continue to be weak, therefore the Federal Reserve would continue to pump money into the system for an 'extended' period of time. This 'pumping' of market sentiment creates the scam or 'rigged' markets that every investor should be aware of. While these big institutions sell into the small buyers, they are the ones spreading rumors to keep the market propped up. The Federal Reserve is either complicit in this pumping or totally oblivious. Make your own decision. This is the exact reason why average Americans do not want to invest any longer. They buy the highs before a major collapse and sell the lows before the markets run higher. The emotional rollercoaster is perpetuated by the 'big boys'. It is essentially a pump and dump on a monster scale. Gareth Soloway InTheMoneyStocks
  6. Facebook Inc (NASDAQ:FB) has been taking a beating in the last few weeks. The stock topped out at $72.59 before dumping to a low today of $57.98. This is a dramatic $17.61 (24%) fall. So where does this become a no brainer buy? The level is $53.25 if it hits in the next three trading days. This level is based on a key gap fill as well as a time factor. Some of you may ask why it must hit it in the next three trading days? That is the time factor which is unbelievably important to any profitable trade. Gareth Soloway InTheMoneyStocks http://d1tp1a0eiw1pql.cloudfront.net/images/stories/Gareth/2012_09/fb03.27.14.png
  7. As we all know, the Russian-Ukraine tension in Crimea continues to escalate on a daily basis. While this event has been front page news it has not really affected the stock market in the United States. Traders and investors have basically shrugged off all of the geopolitical events; they have simply followed the action in the USD/JPY (U.S. Dollar Index vs Japanese Yen) for market movement. Basically, when the USD/JPY chart moves higher so does the S&P 500 Index, NASDAQ Composite, and the Russell 2000 Index. On the flip side, when the USD/JPY declines so does the major stock indexes. While this lockstep relationship between the stock markets and the USD/JPY will not last forever, it has been firmly intact since late 2012. So it is safe to say that the stock markets really only care about this current trade at this time. Now we will point out some issues that could affect the USD/JPY chart... One of the problems brewing around the world at this time is the high Japanese debt levels. Some reports are now saying that Japanese debt is 300 percent higher than its GDP. Any debt level that is this high is extremely alarming. The Bank of Japan is printing more money than the Federal Reserve, and their economy is only one third the size of the United States. How long can this continue? While a weak Japanese Yen helps to lift markets it cannot go on forever; any strength in the yen will disrupt the recent stock rally and an implosion of the Japanese economy could trigger it. China is also facing a ton of problems. Some of the Chinese problems include shadow banking, high debt levels, and daily liquidity issues. The Shanghai Composite Index is now trading at a five year low and it is not very far from its 2008 lows. The stock chart of the Shanghai Composite is not very healthy looking and signals further weakness ahead for the Chinese economy. China is a major exporter to the United States and has the second largest economy in the world. Japan and China have also been arguing over a chain of islands in the East China Sea. Any military conflict between China and Japan would affect the United States directly, as the U.S. military is obligated to defend Japan and its territories. This week, military officials will meet in Hawaii to review bilateral defense guidelines for the first time in 17 years. Both China and Japan have had a long history of dislike for each other and are very sensitive to the recent words spoken by the respected leaders of both countries. Any conflict between these two countries could escalate in major global tensions as other countries choose sides. These are just a few of the problems that are brewing at the start of 2014. Any of these potential catalysts could trigger a decline in the stock markets around the world in the next few months. Nicholas Santiago InTheMoneyStocks
  8. Sugar has been in one of the ugliest bear markets in recent history. It has fallen to epic lows, not seen since 2010. An over supply from South American countries has flooded the market and is making it almost impossible for U.S. farmers to turn a profit. Just last week, for the first time in what seems like forever, sugar popped higher by about 10%. Over the last few days it has started to trail lower again. Please note the chart below. Based on the price action in the last week, sugar is now a buy. For easy access, follow the iPath DJ-UBS Sugar Subindex Total Return Sm Index ETN (NYSEARCA:SGG). The SGG is a tracking ETN an easy way to follow the sugar price action. The current pull back off the 10% pop is a classic in-spirit-of bull flag. The price target for a buy is $52.00. This also matches up with the 20 moving average. Upside potential on the SGG from the $52.00 level is target of $56.50. Should it close below the recent lows of $49.25, a stop out should be used. This is one of the sweetest trade setups I see in the market currently. Enjoy! Gareth Soloway InTheMoneyStocks
  9. Yesterday, Janet Yellen was confirmed by the Senate to be the next Federal Reserve Chairman. History will judge her to be the one holding the markets... Yesterday, Janet Yellen was confirmed by the Senate to be the next Federal Reserve Chairman. History will judge her to be the one holding the markets reins as the next mega stock market bubble collapses. It is somewhat unfair she will be blamed almost entirely, as a majority of the damage will have been inflicted by her predecessor Ben Bernanke. However, she has always been as dovish, if not more than him, never dissenting. The bed for the United States and world has already been made. At this stage it is just degrees of bad that Janet Yellen can control. How much more money is printed? How much higher does the stock market go as the bubble inflates? How much more debt will the U.S government take on and how much higher will the balance sheet of the Federal Reserve go? Top 3 Reasons This Market Will Collapse In 2014-15 1. The Federal Reserve Balance sheet has risen to over $4 trillion. The Federal Reserve is still planning on printing $75 billion every single month going forward. As the economy continues to improve, inflation is going to jump (this always happens with a better economy, even ignoring the massive printing of money that has been done). History has shown us that when inflation starts, it is very hard to control. A good example is China in recent history. In addition, never in history has this much money been printed. 2. Rates are going much higher and soon. We have already seen the 10 yr yield surge above 3%, up about 100% from its recent lows. As much as the Federal Reserve wishes it could control rates, there will be a breaking point where the flood gates open (it likely started already). Rising rates will put a major halt to economic growth as the borrowing of money becomes too expensive for most. Housing will take another hit as well. This means higher unemployment and lower economic growth...just as the economy was starting to do better. 3. The stock market will crash. The stock market has risen 150% off the 2009 lows (without any major corrections) partly because the world is not ending but mostly because the Federal Reserve has been there to backstop any negatives with more printing of money. That money has artificially deflated rates causing money to flow into the stock market. The bottom line is that the market is on a drug called QE. There is no fear of anything because the market feels the Federal Reserve will always be there to bail it out. As the Federal Reserve lowers the amount printed, the market will stall in these upper levels (starting to see that now). As rates rise and economic activity start to stall out later in 2014, the market will hope for more intervention from the Federal Reserve, however quickly realize the Federal Reserve's former tactics will not work. This is where the major freakout will happen. Imagine drug withdrawal. As Janet Yellen takes control of the Federal Reserve, the markets expect more of the same. While the bed has already been made, she will likely make it worse by continuing to feed the drug of QE into the market and economy. There is only disaster waiting at the end of this ride. There is no way you can print over $4 trillion dollars and not have some negative overdose down the line. The markets are priced to perfection and the dark clouds can be seen on the horizon. The Federal Reserve portrays itself as having the ability to always control the outcome. However, we clearly know from history this is not the case. Beware the bubble collapse cycle which hits in mid 2014-15. Gareth Soloway InTheMoneyStocks
  10. There has been constant talk about the overall market being in a bubble. Is it a bubble? To some extent yes, however there is one particular sector that is in the stratosphere. The biotechnology sector is the equivalent of the dot.com sector in 1999. To see the type of moves I am talking about, take a quick look at Celgene Corporation (NASDAQ:CELG) and Gilead Sciences, Inc. (NASDAQ:GILD). Both stocks are up more than 100% in 2013 with market caps exceeding mega cap stature. If you believe the market will pull back in 2014, which I believe. The biotech sector could see the biggest fall from these bubble levels. Imagine even a 50% retrace of the 2013 moves. Major profits to be had. If interested, you can short the iShares NASDAQ Biotechnology Index (NASDAQ:IBB) or buy the ProShares UltraShort Nasdaq Biotech ETF (NYSEARCA:BIS). Both give you plenty of exposure to the collapse in the biotech sector.
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