Wednesday, July 25, 2018

Today's Quick Pick Powered by the Endeavor Add-On.

One of the biggest misconceptions about trading is the thought that every trade must be double digit gangbuster to be a good trade. Most of the time it’s the opposite. Small trades on quality stocks can quickly add up to big profits.
Check out PRAA which had a Blue signal on July 5th. Once price crossed our Trigger Point (blue Iine) it moved up +4.04% in 12 days!



Want more info on the Blue Signal? Click the link below.

Friday, July 13, 2018

Blue Signal On ESV June 27th

From Ryan Capaccio of Simplicity Trading:

Ever wonder how some people always seem to pick the right stocks? Well, they’re not doing it by themselves. They have help and that’s where we come in! Our Blue Signal can identify short-term upward trends in your favorite stocks, ETF’s and REIT’s.



Want more info on the Blue Signal? Click the link below.


Monday, May 14, 2018

Live Example: How to Benefit from Industry Acceleration.

From the desk of Sagar Nandi and Superior Profit

Superior Profit traders look at multiple levels of the market pyramid structure. This structure has Country-Market at the top, followed by Sector and Industry and then Individual Stocks. Stocks may be further analyzed based on Fundamentals and Technicals. Here I focus on the Sector/Industry level with a live market example. You can use such insight not only in the USA Market but other countries as well.

The pitfall of not using Industry Rotation Insight.

Many traders don’t have the discipline or don’t have the tools to study the Sectors and Industries. They may buy Stocks in an Industry that is in peril due to macroeconomic factors, government policies, interest rate environment, technological changes, etc. The individual Stock may be healthy among its peers. However, that does not help. It ends up like swimming against the current in the river Ganges as it flows from the mighty Himalayan mountains to the Indian plains. The Stock has to make a considerable effort only to remain still. To break even in the stock becomes difficult, if not impossible.
Contrast that with the case where you are buying a Fundamentally Strong Stock in an Industry with favorable macroeconomic and policy factors. Even a moderately strong Stock will do well in such an environment. Making profit becomes easier.
Studying the strength and weakness of the Industries also helps you rotate money in a timely fashion from one Industry’s Stocks to another. Investment funds use this Industry Rotation Analysis before putting their money in a Stock. And you may also handsomely benefit by using the same. Unambiguous, easy to use and actionable Industry Rotation Insight was not available to retail traders. However, now it is available in CUE Edge (real-time version) and CUE Industry Scorecard (web-based version). I use the insights from these Industry Analysts every time I invest in a Stocks.

Live application of Industry Acceleration/Deceleration.

Here is a live example based on my public Market Roundup webinar. The video recording is available on the YouTube Channel under Weekly Market Roundup category.
In the Market Roundup of Saturday 5th May 2018, I had shared that though Utilities Sector was the only positive performer for all the review periods looking back one week to one month, it was showing signs of weakness. The Utilities Industries were starting to decelerate.

Sector Performance Graph and Commentary from Market Roundup.


Above is the snapshot that I had shared in the Market Roundup. You could find the deceleration from Industry Score Heat-Map in an instant using CUE Edge Real-Time Industry Analyst or using web-based CUE Industry Scorecard. You could observe the Industry Rotation not based on newspaper opinions or anecdotal evidence but based on real and meaningful data analytics. And the visual heat-map made the Industry Rotation obvious, hiding the complexity of the data under the hood.
How does Utilities Sector look today before Market Open on Thursday 10th May? Over a rolling five days period, Utilities Sector is now having the worst possible score of 1 and the visual heat-map color is dark magenta. I am attaching that snapshot as well.

Sector Rotation Scorecard.


Isn’t that fascinating? You could anticipate the Utility Industries’ decline before it happened. Just like looking at a decelerating car in a car race you can predict that the vehicle is about to fall behind. Sector/Industry Acceleration/Deceleration once again proved to be the best predictor of future market moves at the Sector/Industry level.

How you can benefit from Industry Rotation Analysis?

Industry and Sector Rotation takes place regularly. Sometimes it is strong. Other days it is muted. Whatever be the magnitude, you can know of the undercurrents instantly using CUE Systems visual Industry Rotation Scorecard and Heat-Map. And when you use that in your trading decisions, you have aligned forces from a critical layer of the market pyramid structure with your trade. Giving you trades that have a higher probability and lower risk.
How could you act on the signals from such Industry Analysis? For one, you could protect profit in your Utilities Stocks Long Positions using Trailing Stop. Or, you could book profit altogether, moving your money to another Industry that is now accelerating instead of decelerating.
Would you prefer not to do that? What is stopping you from using Industry Analysis in your next trade and all future trades? Afterall, it takes only a minute or two to gather that insight visually from CUE Tools.

Thursday, May 10, 2018

Today's Quick Pick Powered by the Endeavor Add On.

Having trouble picking which stocks are about to begin moving up? We can help, our Blue Signal can identify short-term upward trends in your favorite stocks, ETF’s and REIT’s.


Want more info on the Blue Signal? No problem! Click the link below.


Wednesday, May 2, 2018

CUE Global on Metastock XVI: Workflow to Identify Reversal Buy Opportunities

From the desk of Sagar Nandi and Superior Profit


Test driving CUE Global on Metastock XVI on the live USA market: A Workflow to Identify Reversal Buy Opportunities.
Metastock just released its latest XVI version, and I wasted no time in testing CUE Global Technical Trading System on the enhanced Metastock platform, on the live USA Market.
Trend following trades are common and are easier to identify. What is more difficult is to determine potential reversal trades. CUE Global does both flawlessly. Here I decided to define a simple workflow that will help you identify potential reversal trades.

Step 1: Using CUE Sonar scans to shortlist a few stocks.

There are thousands of stocks in the USA market, and it is not practical to go through all of them. Fortunately, CUE Sonar programs (implemented using Explorer in Metastock) are there to do the hard work. There are several Sonars that you may run based on what you are searching. I decided to use three distinct Sonars together. Let me explain.

CUE Sonars to identify reversal trade setups.
1.1. Many traders prefer to buy stocks at a discount. They do not like to buy a stock that has already gone up. In this case, I was looking for stocks that fell a lot and are now showing signs of life.
Such stocks are found using the Sonar program “CUE Pendulum Low and Reversing.” What is Pendulum Low? It is a price level that is low enough, i.e., attractive enough to start looking for potential long-term investment as well as short-term swing trade opportunities.
1.2. Showing signs of life may not be reason enough to buy a Stock. You may also want to find a stock that has given a proper trade setup as of today. As I was looking for stocks that declined and are now starting to go up, the stocks may not be in an uptrend yet. How to find possible buy opportunities in a down trending stock? You can do it using one of the CUE reversal trade setups.
CUE Headwind Long Trade Setup is such a reversal trade setup, and it turns out that CUE Systems has a Sonar to search for this setup: “CUE Headwind Long.”
CUE Headwind Long Sonar does not merely seek stocks with specific indicator values. Instead, it identifies stocks with solid trade setups at the right edge of the chart, using unambiguous checklists for the Headwind trade setup.
This CUE Headwind Long Sonar uses the unique and powerful Bullish Headwind signal. What is Bullish Headwind signal? Bullish Headwind is a signal that appears while the stock is still in a downtrend and indicates that a reversal may be imminent.
CUE Headwinds often accurately pinpoint reversals, as it did for several FANG stocks at their swing tops with Bearish Headwind signals. I had shared these FANG stocks’ Headwind reversal in a blog earlier. Here is a link to that blog.
1.3. Bullish Headwind signal works best when the stock is oversold. One way of assessing that is to check if the stock is at or below CUE Lower Boundary Lines. What are these Boundary Lines? These are lines that identify a stock’s usual price extremes. If a stock is outside the Boundary Lines, it is likely to snap back to its mean value. I chose the Sonar “CUE Beyond Lower Boundary” to find only stocks that are oversold.

CUE Sonar Result
Altogether, I decided to run three Sonar programs on the list of S&P500 Stocks. I ran the Sonars in such a way, so that result of one is fed as input to the next Sonar, shortening overall scan time. The Sonars took only a few minutes using real-time data, not data stored on my computer. If I used data saved on my computer, it would be even faster.
After running the Sonars, I could narrow down from more than 500 stocks to only four stocks.

Step 2: Evaluate the stocks on dual timeframes.

Many traders look for stocks that are strong both on weekly and daily timeframes before buying the stock. In CUE Systems you can do that by opening an instrument with the built-in, color-coded, intuitive, easy to read, CUE At A Glance Template. As the name suggests, you can identify a potential trade setup at the right edge in less than a minute, usually in a few seconds. CUE At A Glance Template uses dual timeframes, weekly and daily. However, what is different in CUE Systems from other systems is that it uses two distinct chart templates for weekly and daily. The weekly chart uses Backdrop Template, to show the backdrop against which the stock’s movements are taking place. And daily chart uses Hop On Template, which allows one to hop onto a trade using intuitive yet comprehensive signals.
I opened the four stocks identified in step 1 with CUE Technical Trading System charts. Here I share one of them looking through At A Glance Template.

Step 3. Make a trading decision.

FBHS (Fortune Brands Home & Security Inc) is a stock in Building Products industry.
Using CUE Edge real-time Industry Rotation Analyst or offline CUE Industry Scorecard, you can see that Building Products industry was lagging for a long time and now showing Acceleration of CUE Industry Score.
CUE Vital real-time Stock Fundamental and Peer Analyst or offline CUE Stock Scorecard shows FBHS is medium valued. It has earnings growth in the last quarter. CUE Stock Peer Analysis also indicates that FBHS is not the strongest among its peers. Neither regarding valuation nor growth. You may check out some of the stronger peer stocks for possible technical buy-point. For now, let us stick with FBHS and analyze it with CUE Technical Trading System.

FBHS Weekly Backdrop chart


At the right edge, a Memory Support line coming from far far away (the year of 2014) is supporting price. From the recent Candles’ Lower Tail it seems that Bulls are stepping in at the Memory trend-line support.
Weekly Backdrop chart’s Relative Performance is tilting downward. This downward tilt shows FBHS is under-performing the market in the weekly time frame, which you would expect in a reversal trade setup.

FBHS Daily Hop On chart
Daily Hop On chart shows FBHS has Heavy Activity in recent days, as the Industry is Accelerating. Thus, the Heavy Activity may be a precursor of possible reversal, as if buyers are stepping in. The daily chart has displayed the Bullish Headwind signal, a predictor of potential imminent recovery, at least enough for a quick short-term trade and potential for a longer-term up move.
Based on the CUE 360° Analysis combining Building Products Industry Acceleration, Fundamental medium-valuation & recent quarter earnings growth and chart technicals (weekly Memory support and daily Headwind at the oversold price point), this stock looks like a possible candidate for a low-risk buy opportunity. You could place the Stop just below recent low, determining the exact level using CUE Protection signal (not shown here).
One could take such a Bullish Headwind trade if one is comfortable entering reversal trade setups as against the trend-following trade setups that are more common among traders.

Monday, April 30, 2018

What's New in MetaStock XVI?

MetaStock XVI is finally here, but what's it got to offer?  And is it worth the upgrade?  Watch this comprehensive video to find out....

Thursday, April 26, 2018

From the desk of Sagar Nandi and Superior Profit

If you are holding a Stock what would concern you? Breakdowns.

From the desk of Sagar Nandi and Superior Profit

You may be carrying a Stock for Long-Term Investing or Short Term Trading. Whatever be your reason, you are in the Market to make a profit. And you can only make a profit if the Stock goes up.
Conversely, if the Stock drops, you will have a loss. And you know that, don’t you?
To blindly hold a Stock come what may is not a good idea. There better be a valid reason for keeping a Stock. And a good reason for owning that Stock and not another one of many possible Stocks. You could decide to buy a Stock based on #FundamentalTradingSystem or #TechnicalTradingSystem or a combination of both (as in #CUE360Analysis).
After you get the Stock in your portfolio, you need to track it regularly. And if the Stock is falling, instead of being rigid in your original assessment, you may take a hard look. Remember, you make money Buying a Stock only if it goes up. If it is falling, at some point, you need to exit, preferably taking a small loss rather than enduring a massive equity drop. Hoping that a Stock will eventually recover is not the smartest way to invest in the competitive Market.
Clear Breakouts downward is a warning sign that you may not ignore. And today, Tuesday, 24th April many Stocks in the USA Market broke down below well-established support; the CUE Memory Smart-Auto Trendlines on both Weekly and Daily charts. Here is one example.


PWR Broke below Memory Support Trendlines; found using CUE Sonar Program.

The Stock is PWR in Construction & Engineering Industry. You could find the breakout using Sonar program in CUE Globalfor Metastock or CUE Elite for Tradestation®. It broke down. And you could find that out in real-time exactly when it happened using Sonar scan or dashboard; not after the fact.
What about PWR’s Industry? If you are keeping an eye on CUE Industry Rotation Scorecard or are using CUE Edge to get an early heads-up in real-time, you can easily see that the Construction & Engineering Industry Decelerated today. All you need is to read the visual heat-map. That is another sign of possible trouble for PWR.
The Stock broke down on the technical chart. Industry Decelerated. What about Fundamentals? Currently, regarding Valuation, it is Optimally Valued. You can see that from color coded Scores in CUE Stock Scorecard. However, there are warning signs in slowing Earnings Growth; it slowed down in the last quarter. Next quarterly earnings result is due on 2nd May.
These complete 360° Analysis shows you precisely what is going on in any Stock you are holding. And if that Stock is PWR, there seems to be ample reason to be concerned.
Are you carrying similar Stocks? It is then most probably the time to run a 360° Analysis to figure out the health of those holdings; before it is too late. And take action to protect your hard-earned capital.

Today's Quick Pick - Powered by the Endeavor add on



On 4/17, there was an Early Warning Signal on ANF. It said if price crosses $27.46, expect a 2-5% dip in price.

Here’s the update:

ANF crossed $27.46 (red line) just as predicted and ended up dipping a total of -7.06% in 4 days. The Early Warning Signal is a powerful tool that helps traders predict when a dip in price is coming.

Curious to know which stocks are going to dip next? No problem! Click the link below and sign up to receive the latest Early Warning Signals right in your inbox.




Friday, April 20, 2018

Today's Quick Pick Powered by Endeavor


Today’s Quick Pick
Powered by the Endeavor Add-on

Picking the right stocks can be hard but it doesn’t have to be. Our Blue Signal can identify short-term trends in your favorite stocks, ETF’s and REIT’s.

Check out these two stocks that made big percentages in a short amount of time.

MTDR had a Blue signal on Apr 16th. Once price crossed our Trigger Point (blue Iine) it moved up +5.13% in 3 days!



 FLS had a Blue signal on Apr 10th. Once price crossed our Trigger Point (blue Iine) it moved up +4.92% in 7 days!



Want more info on the Blue Signal? No problem! Click the link below.


Wednesday, April 18, 2018

Today's Quick Pick - Powered by Endeavor



Ever wonder how some people always seem to pick the right stocks? Well, they’re not doing it by themselves. They have help and that’s where we come in! Our Blue Signal can identify short-term trends in your favorite stocks, ETF’s and REIT’s.

Take a look at the 3 stocks that made big percentages.


 LULU had a Blue signal on Mar 28th. Once price crossed our Trigger Point (blue line) it moved up +6.06% in just 13 days!


NTAP had a Blue signal on Apr 6th. Once price crossed our Trigger Point (blue line) it moved up +5.80% in just 6 days!


MANT had a Blue signal on Apr 4th. Once price crossed our Trigger Point (blue line) it moved up +5.05% in just 9 days!




Want more info on the Blue Signal? No problem! Click the link below.

 https://sts.whatsendeavor.com/b/





Take the Best Breakout Trades

Take the Best Breakout Trades with 360° Analysis

From the desk of Sagar Nandi and Superior Profit

Stocks sometimes move inside resistance areas, and once there is enough buying pressure, it breaks out; often starting a new upswing or maybe even a new uptrend.
There are specific breakouts that you can trade for a hefty profit. The successful breakout trades have some common characteristics. They need to provide entry at Low-Risk Buy Point. If the Stock is already up substantially from their resistance breakout, then the Long Entry may carry too much risk. To be successful, a Technical Breakout also has to be accompanied by Heavy Activity showing the presence of aggressive buyers. These are factors that you can quickly and unambiguously identify in a matter of seconds using CUE Technical Trading System running on Metastock (CUE Global) or Tradestation® (CUE Elite).
However, a technical breakout is not enough to take the best breakout trades. To choose only the best breakout trades, you need to find a Stock that is Fundamentally Strong and whose Industry is either healthy or is getting strong? How do you identify that easily? Using CUE Edge Industry Rotation, you can find Industry’s strength and weakness in Real-Time. And using CUE Vital Fundamental Analyst or CUE Stock Scorecard, you can instantly carry out a Stock’s Fundamental and Peer Analysis. Together, CUE Edge and CUE Vital or Scorecard gives you the power of a complete Fundamental Trading System.

Merck (MRK) High Activity Breakout from Base and out of Resistance in Daily Chart on 9th April 2018

How to identify the best Breakout trades in real life? Let us take a recent example. On 9th April, Merck (MRK), a Pharmaceuticals Stock broke out of the automatically drawn very smart trend line resistance (these are called Memory Resistance lines) with High Activity. Not only that. On the same day, the Stock’s Candle color changed to cyan that is Bullish. The Stock was also breaking out from a well-established base formed by Watermark Support Lines.
The breakout started near the beginning of the day. Looking at that, one might take the Long position using CUE Real-Time Fine Tune Chart that uses 5 or minutes interval. That would allow you to enter the trade at an even lower price. This entry technique is standard in CUE Trading and you may learn more on this from the many Weekly Market Roundups including this one.

MRK’s Fundamental and Industry Strength

Using CUE Scorecard, you can instantly carry out a Peer Analysis and check if MRK was/is Fundamentally Strong. Here is the result. MRK is not only Optimally Valued, but it is showing some amount of Earnings Growth in the recent quarters. It pays an excellent Dividend Yield %, has robust Earnings Quality. Among its peer Stocks, MRK has one of the best overall Fundamentals.
To check the Industry, you could use CUE Edge that shows Industry Rotation in Real Time or CUE Industry Scorecard that provides up to date end of day Industry Rotation Insight. Here, we have neutral characteristics. MRK belongs to Pharmaceuticals Industry. This is part of Health Care Sector. The Industry and Sector are lagging for a long time. And in recent period (say, last 5 days) neither improving or deteriorating. Some long term investors may in fact start to look for Optimal Value Stocks at such times if they are breaking out of base and resistance. MRK fitted that profile.

What is the result of taking the MRK Long trade?

A long taken on 9th Apr when MRK broke out of Memory Resistance gave substantial profit. One of the traders we know took a Bullish position using Monthly Options Put Vertical (Sell MRK 57.5 Put and Buy MRK 55 Put; both with same expiry of 18th May; which ws just beyond the next earnings date of 1st May). That trade is Opened for a credit of 1.02 USD. As of today 17th Apr, the Vetical is trading at 0.40 USD. That is a substantial profit in six trading days. The same trade could be taken using Long Stock position.

What to do now with the profitable MRK trade?

MRK continues to be Bullish on both Weekly and Daily CUE Charts. Next Memory Resistance is at around 61.5. One may book at least partial profit then. And one may also put trailing Stop using Stock price as the Stop trigger. Protection Signal in CUE Technical Trading System immediately shows the current Stop Level for the Long position. The Stop Level is at 57.3 USD; well above the Entry price and therefore practically, this a guaranteed profitable trade from now onward.

Want a similar Breakout Trade on Today’s Date of 17th April?

That is not difficult. Using CUE Systems you could immediately identify such trades. Disney (DIS) for example. Here is the Technical Trading System chart showing the breakout. It is a Real-Time Daily chart; the day is not over yet. One may look out for high Activity. Combining Technicals, FUndamentals and Industry Rotation analysis, you may find this to be an attractive Stock to Buy.

Using CUE Fundamental Trading System (EdgeVital or Scorecards) you could check out Disney’s Fundamental and Industry strength and decide to Buy or Stand Aside. We would not suggest Shorting Disney at this point. Would you?
Like this Breakout examples, you can find many other Breakout Trade Setup as well as Trend Following, Trend Reversion, Exhausting and Sideways Market Setups using CUE Technical Trading System. You may learn more from our Education Center; open to the public and serious traders like yourself.

Monday, April 16, 2018

Today's Quick Pick Powered by the Endeavor Add On


Picking the right stocks can be hard but it doesn’t have to be. Our Blue Signal can identify short-term trends in your favorite stocks, ETF’s and REIT’s.

Check out FEYE which had a Blue signal on Apr 4th. Once price crossed our Trigger Point (blue Iine) it moved up +5.83% in just 6 days!


Blue is just 1 of 7 signals in the Endeavor program. See for yourself what all the signals can do. https://sts.whatsendeavor.com/e/



Thursday, April 12, 2018

Today’s Quick Pick Powered by the Endeavor Add-on


Picking the right stocks can be hard but it doesn’t have to be. Our Blue Signal can identify short-term trends in your favorite stocks, ETF’s and REIT’s.

Check out GES which had a Blue signal on Mar 23rd. Once price crossed our Trigger Point (blue Iine) it moved up +9.91% in just 11 days!



Blue is just 1 of 7 signals in the Endeavor program. See for yourself what all the signals can do. https://sts.whatsendeavor.com/e/



Wednesday, April 11, 2018

Trading for a Living - Dr Elder

If you've never seen Dr. Elder's no-nonsense approach to trading, you are in for a treat...



Dr. Elder is the author of the world’s best-selling books on trading, including Trading for a Living. In the past, you could only find such classes in selected cities in the US and worldwide. Now you can learn right from your own home.

Dr. Elder will be presenting the key ideas from his latest book "The New Trading for a Living" on planning trades, risk control, and learning from your own trades.

Dr Elder will review of the current markets conditions looking at the major indices. Are stocks finally in the value zone? Is the market still too depressed? Dr Elder will give his personal insight and we'll even look at stocks requested by webinar participants.

Dr. Elder will be using his newly upgraded Enhanced Trading Room add-on for MetaStock. It contains 20 unique indicators, 15 pre-built templates, 8 explorations, and 6 expert advisors to help you lift your trading to a higher level.

About Dr. Alex Elder

One of the most intriguing characters on the commodity scene is Alexander Elder, MD. He has his fingers in many different pies and does a quality job in all of them. Elder is a living advertisement for the American dream and the place of futures trading in it." -- Commodity Traders Consumer Report

"How Alexander Elder grew up in Estonia, was educated as a psychiatrist, escaped from a Soviet ship in Africa and became a successful futures trader and head of his own firm, Financial Trading Inc. in New York, would make an interesting book itself." -- Futures Magazine

"Dr. Alexander Elder offers a unique view on the markets. A New York City psychiatrist and professional trader, he runs Financial Trading, which helps people become better traders." -- Financial World

----

To get the offer described in this presentation, visit https://www.metastock.com/dreldera You can save $100 on the Enhanced Trading Room for MetaStock, PLUS, get a trial of MetaStock if you don't already have it.

Get a FREE eCopy of Secrets of Successful Traders at https://www.metastock.com/youtubebook

Monday, April 9, 2018

Complete Top Down Analysis in Real-Time

Complete Top Down Analysis in Real-Time to find the Strongest Stocks.

From the desk of Sagar Nandi and Superior Profit

In the recent weeks, the USA Market had displayed down-up-down or flip-flop movement. We discussed this in depth in the Live Market Roundup of Saturday 7th March 2018. In such a Market situation, it is crucial to adopt an approach that identifies the best Stocks before Buying. What is a best Stock? It is a Stock that has everything going for it.
Step by step Top Down Analysis where at every level we try to identify strength, and Buy the Stock only if there is strength in every level or most of the levels; provides such a careful approach. Here is how I carried out the Top-Down Analysis today, Monday 9th April 2018 in Real-Time usign CUE Systems.

Sector Analysis





Sector Analysis: Scorecard and Heat-Map in Real-Time.


At the Sector Level, using CUE Edge, I noticed that Health Care as a Sector is lagging behind others. In the CUE Edge Sector Scorecard and Heatmap table, magenta color and a lower score indicate that a Sector is lagging. From the heat-map, it is immediately evident that Health Care is one of the weakest Sectors across all the review periods between 1 Day period to 12 months period.

Industry Analysis

A Sector is too broad for identifying Industry Rotation. Sector move study may not allow us to catch the Fundamentally Strong Stocks just as they resume their up move. For that, we need to drill down to Industry level. CUE Edge allows to drill down from Sector to underlying Industries using a single click. I did precisely that. Here is the resulting CUE Edge Industry Scorecard and Heat-Map for Health Care Industries.



Industry Analysis: Scorecard and Heat-Map in Real-Time.


What do we see here? In general, the Industries are all weak; we know that from the overall magenta color of the cells in this table. However, there is another critical piece of information that allows us to identify hidden undercurrents well ahead of others. That is the Acceleration that shows up on the Pace Columns at the right. Multiple Health Care Industries have the Pace 1 Day Scores in cyan color. These cyan Pace Scores indicate that though the Industries were behind others, they are starting to sprint. Pharmaceuticals is one such Industry. It jumped and gained Score from 14 over 2 Days to 166 over 1 Day, i.e., today. That is a big jump. And the Pace 1 Day column flashed that Acceleration using the cyan Heat Map color.

Stock Fundamental Analysis

If Pharmaceuticals Industry is Accelerating, it is logical to drill down into its Stocks and see if we find a Fundamentally Strong Stock. We can do that using CUE Edge with the click of the mouse. Here is the Vital Statistics of Pharmaceutical Stocks as found by CUE Edge; all calculations are done in Real-Time using reliable data from Xenith (Thomson Reuters EIKON).



Stock Fundamental and Peer Analysis: Vital Statistics and Heat-Map in Real-Time.


Immediately the Stock Merck (MRK.N or MRK) comes to the notice. It is Optimally Valued; indicated by cyan color on Relative Valuation column. Quarterly Earnings Growth is gradually going up in recent quarters. Pays an excellent Dividend Yield of 3.6% and today it went up by about 6% as of the time of this post. So far, MRK looks strong based on Industry Acceleration and Stock Fundamentals.

Technical Analysis

Lastly, we would like to check out the CUE Technical Charts to ensure that there indeed is a Buy opportunity on the chart; that is there is a Low-Risk Buy Point. The series of CUE Technical Charts below confirmed that such an opportunity might be approaching.
1) MRK Weekly Backdrop Chart shows that Candle color changed from magenta (Bearish) to cyan (Bullish) and the Stock reversed from Watermark Support Level (dotted lines near price base).



MRK CUE Backdrop Weekly Chart Technical Analysis.


2) In CUE Daily chart, MRK broke out of Memory Resistance (Smart-Auto red color Downtrend Line) after creating a long base at Watermark Level (dotted line below recent price lows). Today’s Activity is high as shown by today’s Activity bar at the bottom.



MRK CUE Dialy Chart Technical Analysis.


Trading with Confidence

What is the result of these few clicks on CUE Edge and then looking up the charts on CUE Charts? You could find a Stock that is Fundamentally Strong. The Stock is in an Industry that is Accelerating after being down for a long time. And the Stock broke out of resistance today with massive percentage move and with heavy volume.
Traders have higher confidence in Buying such a Stock where everything is going for it: Industry strength, Fundamental strength, and Technical strength (moving out of the base and breaking out of resistance), sizable percentage move with high volume. Instead of buying a Stock based on only a Fundamental Trading System or a Technical Trading System.
Using CUE Edge and CUE Charts (CUE Global or CUE Elite) you can find such lucrative potential Buy opportunities every day. In real-time.
And if you want to Short Stocks or take Bearish trades using Options etc., you can carry out the exact opposite analysis. Start with a weak Industry. Drill down to find Fundamentally Weak Stocks and then looks for Low-Risk Short Point.
Either way, you have the confidence that you have done your homework before placing your next trade and that you have a real edge over many other traders using this Complete Top-Down Analysis.

Thursday, April 5, 2018

Reversal Signal that Predicted Fall of FANG Stocks


From the desk of Sagar Nandi and Superior Profit

Reversal Signal that Predicted Fall of FANG Stocks at the Top


When the USA Market was roaring upward in the recent past, people were always talking about the FANG Stocks. FANG Stocks constituted of Facebook, Amazon, Netflix and Google. The four heavyweights that pulled the Market higher and higher. Then, from around 13th March 2018, these powerful Stocks started a pullback.

You Could Easily Profit from Amazon’s Pullback.

Not so long ago, on 22nd March 2018, one young trader friend wrote to me that Amazon (AMZN.O) was leaping forward. I commented that it was time to be cautious.
Since my conversation with the trader, AMZN dropped until 4th April 2018 when it recovered somewhat. That drop was enough for a very profitable Bearish Swing Trade; using Stocks or simple Put Options or Short Call Verticals; for example.

The news media had a ready explanation for the drop; they always have such reports prepared after the fact. Have you noticed that? Hearing rational-sounding reasons for a move after the move has happened does not help a trader. Instead, what a trader needs is a clear signal when to exit a Long position and when to take a Short; profiting from both the directions. Could you do that on Amazon? Yes. You could do it; efficiently; using CUE Systems and Techniques. No less than two CUE Signals showed Amazon’s weakness. These are explained in the following chart and accompanying descriptions.

AMZN Headwind Reversal Signal had triggered on 13th Mar.

It is not usually easy to predict the top of a Stock’s up move in general. And probably even harder for a Fundamentally Robust Stock like Amazon. However, CUE Technical Trading System include a unique and powerful Headwind Reversal Signal that often flashes before an actual Stock price reversal.  That happened again in AMZN on 13th March. The Headwind Signal appeared at the Very Top of Amazon’s price move. Amazing, isn’t it?

AMZN had Trend Following Short Setup on 22nd Mar 2018

One was that on 22nd March AMZN, in fact, gave a CUE Trend Following Swing Short Trade Setup that we call Go With Flow Short Setup. In the Daily chart (shown below), on that day, AMZN met all the Unambiguous Checklist conditions for the Go With Flow Short Trade Setup. If a valid Short Setup was displayed, Long positions should be cautious and, in fact, could have protected the position using Trailing Stop or exited it all together.

CUE Bearish Headwind Signal in other FANG Stocks


Amazon was not the only one of the FANG Stocks that displayed Bearish Headwind Signal at the Very Top.
Bearish Headwind Signal caught the Very Top of Netflix (NFLX.O) on 12th March 2018.
Headwind Signal was followed by Short Swing Trade Setup that resulted in a high profit.


Google (GOOG.O) displayed the Bearish Headwind Reversal Signal on 13th March 2018, near its All-Time High.
You could use the signal to protect profit in existing Long Position using Trailing Stop. Doing that would protect your capital. At the right edge, Google is at Memory Trend Line Support.

Headwind Reversal Signal in ETFs and Global Stocks

By no means, the FANG Stocks were the only ones where CUE Headwind Signals indicated possible reversals. It signaled a potential reversal in many other Stocks at their Very Top of a swing.
Headwind signal works well with ETFs or Futures as well. In fact, it could catch the Very Top of several swings in SPY, QQQ, and DIA. It works on Global Stocks as well.
Recently there was a Bullish Headwind Reversal Long Trade Setup in the Indian Motor Company, Tata Motors (TAMO.NS). You could find the setup using Headwind Trade Unambiguous Checklist and Sonar Program in CUE Global Technical Trading System. I shared the possible Long trade in our Traders Community on 26th March 2018. That trade has already hit its profit target as shown below.
Every day, you can use the Headwind Sonar Program to look for possible reversal trade setups. Some may be available right now. Learn more about the CUE Systems and Trade Signals and Setups from the Education Center that is open to the public.