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inthemoneystocks

3 Reasons Why Molycorp Inc Has Major Upside

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Molycorp Inc (NYSE:MCP) is a rare earths play that has been pounded. The stock is trading at $1.31, from a 52 week high of $7.59. This stock is forming a nice technical bottom and will likely see a major pop soon. Below are the three reasons.

 

1. On September 11th, 2014, Molycorp Inc (NYSE:MCP) secured $400 million of funding. This means they have enough cash to operate for quite some time before bankruptcy is an issue. If they can reach certain milestones, it is likely more funding will be made available. As Molycorp is trading at near bankruptcy levels, it is undervalued and likely will rise.

 

2. Rare earth is a main component of missiles and radar systems. With global conflict soaring, involving almost every major world power, prices are likely to go much higher. This will boost the chance of Molycorp meeting its key numbers and potentially turning a profit.

 

3. Per their press release on Tuesday, September 30th, 2014, "Molycorp Announces that its Expanded Leach System Has Now Been Placed Into Service at its Mountain Pass, California Facility". They appear to be on the right course of action, moving towards expanding production just as prices should begin to increase.

 

In addition, the chart has obviously bottomed on the daily, signal a technical pop on the horizon.

 

 

Gareth Soloway

InTheMoneyStocks

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People Are Clueless About The Price Of Oil, This Is Why

The psychology of people involved in the stock market never ceases to amaze me. On February 11, 2016 crude oil traded as low as $26.00 a barrel, but people in the stock market were terrified to buy it at that level. In fact, many of the financial talking heads on television were saying that oil would go down to $10.00 a barrel. These types of remarks caused people in the public to avoid investing in crude despite the commodity trading at new yearly lows and being severely oversold. Now crude is trading above $50.00 a barrel and people are afraid to sell it short despite crude rallying higher by nearly 100 percent since February.

 

Many of the financial talking heads are now saying that oil will go to $75.00 a barrel before peaking out. Isn’t it funny how these so called experts come up with these levels? What are they using to say these statements. The truth is that they are probably hoping it comes back to that level so their investments can work out or recover from the 2016 decline earlier this year. If anyone looks at a chart of crude oil they could clearly see oil has major resistance around the $50 to $55.00 dollar area. Today, crude oil is trading around $51.00 a barrel.

 

There are many factors that affect the price of crude oil. Some of these factors include oil production output, weather, geopolitical events, and the U.S. Dollar. Out of all of these factors the strength and weakness in the U.S. Dollar seems to be most important. Please understand, most of the oil in the world is traded in U.S. Dollars. So if the U.S. Dollar is strong against most other currencies in the world the oil price will likely decline. That was certainly the primary reason for the decline in crude throughout the past two years.

 

There are many ways to trade oil despite using oil futures these days. ETF's and ETN's such as the United States Oil Fund LP (ETF)(NYSEARCA:USO), iPath S&P GSCI Crude Oil Total Return(NYSEARCA:OIL), and the ProShares Ultra DJ-UBS Crude Oil(NYSEARCA:UCO) are just a few different vehicles that can be used to trade oil on the long side. Some short side trading equities for crude include the ProShares UltraShort Bloomberg Crude Oil ETF(NYSEARCA:SCO), and the DB Crude Oil Double Short ETN (NYSEARCA: DTO).

 

Full disclosure: I currently own SCO shares.

 

oil%20chart%206.9.16.png

 

Nicholas Santiago

Inthemoneystocks

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This Is A Major Concern For Investors IBB

 

The iShares NASDAQ Biotechnology Index (ETF) (NASDAQ:IBB) has bounced beautifully off of double bottom support at $240 on the daily chart. Today it traded as high as $254.70, just two days after hitting $240.00.

 

Investors are wondering if it is safe to buy the $IBB? The short answer is... no. This is why...

 

There is a major concern on the daily chart of the biotech ETF IBB. Notice the confirmed break down that took place when the IBB broke through the upsloping trend line. Once confirmed, a retrace into that trend line (like we are seeing today) is almost always a heavy shorting opportunity. That means the IBB may fall sharply as early as next week. If the IBB is falling hard, you can bet the market is dropping sharply. This should be a major concern to not only biotech investors but all investors in the stock market.

 

 

IBB06.29.2016.JPG

 

Gareth Soloway

InTheMoneyStocks

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This morning saw the Bank of England surprising the financial markets by not lowering interest rates as had been expected. This move is shocking because it goes in the face of all other global central banks and their easy money policy. After Brexit, the Bank of England was in a perfect position to lower rates but chose to stand firm. Could this be a new wave of central bank thought? Is easy money policy not the answer to energizing growth?

 

For the United States, perhaps the bigger news came in the form of economic news. The Producer Price Index, which measures inflation came in at 0.5%. This was the largest increase since May 2015. The sharp increase in inflation is likely to cause the Federal Reserve to worry. Over the last year, the decent economy and super strong stock market has not caused the Federal Reserve to hike rates since December 2015. Their reasoning has been that inflation is still non existent.

 

If this inflation data becomes a trend at these levels, the Federal Reserve will be forced to raise interest rates or face a far worse future of stagflation. Stagflation is the most feared of all scenarios where inflation spikes but growth is flat. This means prices of goods jump higher but average income stalls and economic growth drags.

 

 

Gareth Soloway

InTheMoneyStocks

Edited by inthemoneystocks
Title edit

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I have traded Twilio Inc (NYSE:TWLO) a few times since it went public in mid 2016. Each time, taking some profits. As of today, I am adding it to my strong buy watch list. Please note, I have not bought Twilio Inc yet, but am starting to look for a perfect entry price, just before the stock pops big. Below are my factors.

 

 

1. The stock has been selling off as the lockup expiration date looms. The date is December 20th, 2016. Investors are fearful that insiders will sell. Therefore, they have sold ahead of it. History shows us that it actually works in the opposite way. The bark is worse than the bite. The selling from investors, bringing the stock close to its IPO level, makes insiders not sell. Once investors see no selling after December 20th, they will rush back in.

 

 

2. End of year tax loss selling. Investors are also selling to take losses into year end in an attempt to minimize their tax bill. This is common and creates extra sell pressure in December which will vanish in January. Once January comes, beaten down plays like Twilio Inc will see a big bounce as there are no more sellers. Keep in mind, if you were going to sell, you would do it in December.

 

 

3. The stock is still a huge profit and growth story. Let's not forget this is one of the main reasons why it ran up to $70 earlier in the year. As soon as the selling pressure abates, Twilio will pop and investors will chase.

 

 

Ultimately, I am interested in buying if either of these two conditions are met. The first is if the stock sells into gap fill at $27.25. The second is, regardless of price on the first trading day of 2017.

 

TWLO12.15.16.png

 

Gareth Soloway

InTheMoneyStocks

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Big Trouble Coming For JPMorgan Chase & Co. (JPM)

 

The stock chart on JPMorgan Chase & Co. (NYSE:JPM) is hanging on by a thread to support. Investors should be very wary about being long the bank stock as big money continues to exit quietly.

 

Based on countless technical signals, JPMorgan Chase appears to be getting ready to break lower. What is so interesting about this is that JPMorgan is set to report earnings later this week. This may strongly indicate they will miss earnings and/or talk about the less likely chance of Dodd-Frank being undone. Either way, when the trend line shown on the chart below breaks, the stock has major downside to $77.00. Based on calculations, it is just a matter of days until the stock breaks lower. Be ready!

 

 

JPM%2004.10.2017.PNG

 

 

Gareth Soloway

InTheMoneyStocks

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I am short Home Depot Inc (NYSE:HD) based on multiple indicators showing an extreme overbought condition. The fact that Home Depot Inc (NYSE:HD) has chopped sideways over the last few months, shows institutional selling as funds and small investors buy. This is a passing off of the hot potato before the fall.

 

Ultimately, when the trend line below breaks (seen in the chart below), Home Depot $HD will collapse quickly. The downside target I have near-term is $135.00. In addition, investors should be very concerned with the recent jobs data and lack of mortgage loans being taken out. This may show signs of a weakening economy. If that is the case, Home Depot $HD will see the brunt of the slowdown in sales and revenues.

 

 

HD%2004.12.2017.PNG

 

Gareth Soloway

InTheMoneyStocks

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Shares of Dicks Sporting Goods Inc (NYSE:DKS) fell sharply on Tuesday after reporting poor earnings and guidance. The stock is trading down over 13%. As it collapses and long investors who held into earnings are in pain, swing traders are beginning to scope out major buy levels. After extensive analysis, I am seeing a buy support level on the stock chart at $38.00. This is the first level I would consider buying for a swing trade long trade. Off this level, assuming the stock falls directly into $38, investors should see a solid bounce back above $40. Perhaps even a 10% bounce over multiple days to a week or two.

 

 

DKS%2005.16.2017.PNG

 

Gareth Soloway

InTheMoneyStocks

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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.

 

 

TEVA%2005.24.2017.PNG

 

Gareth Soloway

InTheMoneyStocks

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Last week, most of the leading food processing stocks sold off after Amazon.com (NASDAQ:AMZN) announced that they were acquiring Whole Foods Market Inc (NASDAQ:WFM) for $13.7 billion. Many of these leading food processing stocks are still coming under pressure since that news was released. At some point some of these leading food processing stocks will look attractive.

 

General Mills, Inc. (NYSE:GIS) is a leading is a manufacturer and marketer of branded consumer foods. This stock peaked out in July 2016 at $72.95 a share. Since that high pivot the stock has plunged lower and is currently trading at $56.85 a share. Many traders are now wondering if the stock is on sale, but the chart pattern indicates that the shares are headed lower. At this time, the stock has major support around the $52.50 area. This is a level where GIS stock based for roughly two years before breaking out. Very often, prior base patterns will serve as major support when retested. It should also be noted that General Mills, Inc. (NYSE:GIS) will report earnings on June 28th, 2017 before the opening bell.

 

GIS%206.20.17.png

 

Nicholas Santiago

InTheMoneyStocks

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Shares of Goldman Sachs Group Inc (NYSE:GS) broke above key resistance and are likely headed to a double top high of $255.00. That would be a 10% upside move, expected in the coming weeks. The reasoning is simple. Interest rates have started to spike higher, good for any bank. In addition, volatility in the stock market is starting to inch back up, another key way Goldman Sachs makes money. Lastly, the chart technical setup is beautifully bullish. Goldman Sachs has broken out above key resistance and is above all three major moving averages on the daily chart (20, 50, 200). This puts it in an exceptionally strong position to roar higher. I am bullish on Goldman Sachs Group.

 

GS%20chart07.17.2017.PNG

 

Gareth Soloway

InTheMoneyStocks

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Crude oil continues to climb higher as global economic optimism increases and instability in the Middle East continues. Anti-government protests in Iran have helped push oil above $60 per barrel. Considering economic optimism is likely at/near a high and U.S. production is increasing with the price of oil, the pivot high from 2015 at $62.00 is likely a good short opportunity. I expect a pull back off $62.00 back to the $55.00 level of support.

 

 

OIL12.30.2017.PNG

 

 

Gareth Soloway

InTheMoneyStocks

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Tesla Inc (NASDAQ:TSLA) has been trading in a bearish consolidation pattern for the last few months. Every time the stock tags the upper band of the consolidation pattern it is a dead on short. In addition, eventually this bearish pattern will collapse. This puts it in a ripe spot for a short as a near-term trade and a long-term trade. The trigger would be a tag of $355.00. Keep a stop at any close above the all-time high of $389.61 and a downside target price of $240.00.

 

 

TSLA01.11.2018.PNG

 

 

Gareth Soloway

 

InTheMoneyStocks

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The U.S. Dollar collapsed sharply today after Secretary of the Treasury Steven Mnuchin said the United States wanted a weaker currency. This statement comes after the U.S. Dollar has already fallen sharply since President Trump took office. While a weaker Dollar inflates asset prices which is likely the reason for the comment, it hurts lower and middle income Americans as buying power degrades and inflation jumps higher. Anyone who is not invested heavily in the stock market is seeing their real buying power drop with oil prices surging and other prices jumping in response. Investors on the other hand are loving it. Those with millions and billions invested in the stock market are noticing that every time the Dollar drops, the stock market jumps higher. In fact, it can be argued that there is a bubble in the stock market because of the weaker Dollar. The bottom line is, we should all be careful of this uber weak Dollar policy. There will be repercussions in the future for all Americans.

 

In looking at the stock chart, it clearly shows the exact spot it will fall to. Using the Dollar ETF $UUP, the U.S. Dollar will hit major pivot highs from 2012 and 2013 at $23.00. That means there is still some near-term downside because a technical support is tagged.

 

Lastly, please be aware that just like with Federal Reserve policy on massive money printing and how global central banks followed suit, other governments will start to devalue their currency in response. This ultimately is a long-term positive for gold, silver and Bitcoin.

 

 

UUP01.24.2018.PNG

 

Gareth Soloway

InTheMoneyStocks

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Could Get Nasty: What This Trend Line On Boeing Co $BA

 

Shares of Boeing Co (BA) have been hovering just off of all-time highs for the last 8 months. Trade war fears have kept it from making new highs as apparent distribution continues. Distribution is where big money sells to smaller investors or dumb funds. As of now, Boeing is safe. However, if it breaks the trend line shown on the chart below, watch out below. The stock could fall quickly to $300 or below. This trend line is a major technical support that has been holding. If it gives way, there is nothing below until $295.00.

 

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Gareth Soloway

InTheMoneyStocks

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    • "without bearing any loss?"  That's a really tough question n meat.  Are you serious?! "without bearing any loss" - hm?  Can you think of any trade or investment that is completely risk free?  Can you think of any trade or investment that is completely loss free? I've seen even routine, highly reliable ( at the time ) arb's lose money try this - go to japan , borrow 10 billion yen, leave 'japan', go to _________, never make the first payment on principle or interest ... whoops- that has risks too.  try this - start your own bank... whoops that has risks too.  try this - start your own digital cash.  If you play it right, all you risk is your time on the computer and your connectivity costs   ... if you really need to avoid loss, stay away from trading - period! ... bcse you are going to have 'ANY' loss in trading. Better to embrace loss.  Both intra personally and in terms of your capital, make each loss the best, minimum/optimum, loss it can be ...     PS Stick around some helpful soul will tell n meat to get on sim and practice until ... I'll take bets right now it won't work for n meat   PS when is the next Lab meeting?  I have an agenda item to add... TL needs to order new GM mice from a different vendor
    • https://www.wakingtimes.com/2018/08/14/8-things-you-need-to-know-but-probably-dont/ these are not really things traders should know... just sayin'
    • Benjamin A. Rogge
       
    • Date : 16th August 2018.

      MACRO EVENTS & NEWS OF 16th August 2018.



      FX News Today

      Asian Market Wrap: 10-year Treasury yields are up 1.8 bp at 2.880%, 10-year JGBs up 0.7 bp at 0.094% as of 05:35GMT, as stocks move up from early lows on trade talk hopes. Asian sold off early in the session amid concerns over global growth and particularly China, after a Sino-related tech slump saw Wall Street heading south yesterday. Reports that China and the US are preparing a low level round helped to put a floor under markets, however, and mainland China bourses managed to move higher, while other indices are up from early lows. Topix and Nikkei are down -0.78% and -0.21% respectively. The Hang Seng is still down -0.395, but CSI 300 and Shanghai Comp are now up 0.61% and -0.20% respectively. The Kospi slumped -0.87% after returning from holiday and the ASX 200 is down -0.035. Meanwhile, US futures are moving higher with Chinese markets. Oil prices are slightly up from lows and the September US oil future is trading at USD 65.10 per barrel.

      FX Update: The Dollar and the Yen have both weakened, giving back recent gains amid an improvement in risk appetite. The US and China have agreed on a new round of trade talks, while Turkey has managed to halt the rout of the Lira and secure major investments from Qatar and China’s Alibaba. The USDIndex (DXY) is showing a 0.3% decline, at 96.44, heading into the London interbank open, while EURUSD is concurrently showing a 0.3% gain, earlier printing a two-session high of 1.1397, putting in some space from yesterday’s 13-month low at 1.1316. USDJPY has settled in the upper 110.00s after printing a low in Tokyo at 110.46. AUDJPY, viewed as a forex market proxy on risk appetite in global markets, is showing the biggest move with just over a 0.5% gain. Over the near-term, the Dollar and the Yen will likely remain apt to weaken before settling as developments on the latest phase of Sino-US negotiations are awaited.

      Charts of the Day



      Main Macro Events Today

      UK Retail Sales – expected to grow by 3% YoY in July.

      US Housing Starts – expected to increase to 1.26 mln in July, compared to 1.17 mln in June, with building permits also expected to increase breaking the 1.3 mln barrier.

      US Initial Jobless Claims – stabilisation to approximately 215,000 slightly up from 213,000 from last week. Continued jobless claims are expected to decrease slightly to 1.75 mln from 1.755 mln last week.

      Support and Resistance Levels



      Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

      Please note that times displayed based on local time zone and are from time of writing this report.

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      Click HERE to READ more Market news.

      Dr Nektarios Michail
      Market Analyst
      HotForex

      Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
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