inthemoneystocks

Just yesterday, Apple Inc (AAPL) tagged a major support level at $215.00. Apple has already started to bounce sharply, now trading near $240.00. Based on a technical Fibonacci retrace, Apple has continued upside to $256.00. This is a Fibonacci 38.2% retrace as well as technical resistance. Thus, likely where it will meet significant resistance. I own it at $221 with members of Verified Investing Alerts.

Check out the chart below... https://inthemoneystocks.com/bounce-target-price-on-apple-inc-aapl/

Gareth Soloway
InTheMoneyStocks
Chief Market Strategist

Market crashes have occurred throughout history. What is happening now has happened before. As written in the book of Ecclesiastes, there is nothing new under the sun. Every market crash at some point will also experience a bounce. This current market crash has seen the Dow Jones Industrial Average (DJIA) fall by as much as 34% in just six weeks. So when a bounce does actually arrive it can be fast and sharp.

While most investors will talk in terms of points when a bounce begins, I prefer to look at retraces. A simple 0.382 retrace will take the DJIA back up to 22,550 level. So this is a very good target for traders to watch. More conservative traders should note that a simple 0.25 retrace takes the DJIA to 21,000. Either way, these are some short term targets that I’m watching for right now. Note the chart below and trade accordingly…

See the chart here: https://inthemoneystocks.com/what-kind-of-bounce-can-we-expect/

Nick Santiago
InTheMoneyStocks
Chief Market Strategist

Shares of RH tagged major technical support today at $75. The company formerly known as Restoration Hardware has fallen from over $255 to under $75. This whopping collapse breeds opportunity for investors and near-term swing traders looking for opportunity. The Federal Reserve announced a huge backstop in MBS and treasury purchases, the government is about to announce a $2 trillion stimulus. This amount of money being thrown at the collapsing economy will create a near-term bounce and a long-term epic upswing in stocks. Once the COVID-19 threat has passed, investors may be looking at new all-time highs due to low interest rates and a huge liquidity surge.

The major technical support on RH gives investors and swing traders a good spot to start accumulating shares. In the near-term, a bounce back to $100 is likely, longer-term perhaps $255 will be seen again.

See the chart here: https://inthemoneystocks.com/major-technical-chart-support-tagged-on-rh/

Gareth Soloway
InTheMoneyStocks
Chief Market Strategist

At this time, the markets are looking for a TARP deal out of the Congress. Over the weekend, the U.S. Senate was unable to agree on a stimulus deal. This news caused the S&P 500 futures to trade limit down in overnight trading. Another procedural vote on a stimulus package in the Senate will take place at noon today. A failed vote could send the markets sharply lower again.

Earlier today, the Federal Reserve announced an open-ended quantitative easing program. They will buy corporate bonds in the primary and secondary markets. They will also buy Agency Commercial Mortgage Backed Securities. This news helped the markets to stabilize and actually rally before the opening bell. Now the markets seem to be waiting on the politicians once again. Watch the charts and be ready for the action!

See the chart here: https://inthemoneystocks.com/markets-are-hoping-for-a-stimulus-deal/

Nick Santiago
InTheMoneyStocks
Chief Market Strategist

Shares of the semiconductor ETF (SMH) tagged a long-term trend line yesterday when it breached $96. This can be seen on the technical chart below. While the panic continues over Covid-19, the semiconductor ETF signals a near-term bounce at least. This likely means the markets could see near-term relief as well, as the semi’s are a leading market indicator. In terms of S&P ETF (SPY) upside, look for a bounce at least back to $271.00. There is a key gap fill at that point that will be big resistance.

See the chart here: https://inthemoneystocks.com/semi-etf-smh-hits-long-term-support-level/

Gareth Soloway
InTheMoneyStocks
Chief Market Strategist
 

Individual Stock Target Prices: TSLA, AAPL, X...

Shares of Tesla Inc (TSLA) have fallen from nearly $1,000 to $350. This collapse is coming on the back of Covid-19 which is devastating the global economy. While panic is palpable, investors who have cash sitting on the sidelines may want to check out the Tesla chart. In fact, Tesla Inc is a buy based on a trend line support dating back to 2017, 2018 and 2019. This $350 level was the level it saw for years before finally breaking out. The thought process goes, former major resistance levels become major supports. While I would never recommend putting a lot of capital in Tesla during the global panic, a little bit of money now may turn into a lot in the future when things settle down.

See the chart here: https://inthemoneystocks.com/tesla-inc-is-a-buy-because-of-this-technical-level/

Gareth Soloway
InTheMoneyStocks
Chief Market Strategist

From recent all-time highs to the lows, the stock market fell over 25% in three weeks. This is the quickest drop in history. Thursday, March 12th saw the biggest decline (over 2000 points on the Dow) since the crash of 1987. Investors are panicking and running for cover, but many are also wondering if the stock market has bottomed. There are key factors every investor needs to look for. If done correctly, the profits can be insane. 

1. Investors and stock traders need to monitor fear. The higher the VIX goes, the more likely the market is nearing a bottom. In 2008, the VIX traded between 70-95. On Thursday, when the stock market had its biggest drop since the crash of ’87, the VIX went over 75.

2. Control your own emotions and recognize the more fearful you feel, the more likely is the time to buy. Fear was palpable over the last few trading days. In fact, it was full out panic. Talking heads on TV were panicking, people were mobbing the the stores for hand sanitizer and food/toilet paper.

3. Look at technical levels. This is insanely important. Find a major pivot on the chart, look for a bottoming tail and isolate a huge volume day. When three things like this happen on the same day and the markets are down 25% in three weeks, you likely have at least a near-term bottom.

4. Start small. Markets in full panic can pierce key technical levels. The smartest investors know they won't nail the bottom to the penny so they start buying small. They know they want to accumulate a total of XX position. But they start with buying 1/3 of that or 1/2 of that. This keeps stress down and often will give the investor an overall better average.

5. Go with quality names, not non profitable small caps. Stocks like American Express and Disney are down 30%+ in just weeks, these are quality stocks that should be considered versus high risk small caps that make no money. Same thing applies with Apple, Microsoft, Alphabet…ect.

The bottom line is, while $137 billion was pulled out of the stock market last week by small investors, the right signal may have been to buy the markets. Think about it like this. Three weeks ago the stock market was at all-time highs. Investors were praying for a 3% pullback to buy. Now they have a 25% pull back and are afraid to buy. Smart money looks for quality stocks and inches into them at key technical levels. That is how a fortune is built.

Gareth Soloway

Chief Market Strategist

InTheMoneyStocks

Oil is bouncing off the $40 per barrel level again. This is the third time it has hit this level and bounced. In terms of technical support, this would be known as major support level. One interesting factor that should be noted as well, in August 2015, oil saw the high thirties briefly. This low remains intact and has not yet been violated. As long as oil holds the $38.25 pivot low, oil stocks should be looked at as long term bargain investments.

Many oil names are trading at levels not seen in years. For example, Chesapeake Energy Corporation (NYSE:CHK) and Southwestern Energy Company (NYSE:SWN). Looking at the charts alone will make you shudder. That is usually a good reaction as it shows panic from investors. If logic prevails and the thought is that eventually, oil will grind up to the $75-$100 level again, these plays could literally double, triple and quadruple in value. It is almost wise to view them as an options trade. Sure, in a catastrophic event CHK or SWN could drop 50% or more, but the upside potential is epic with patience. In addition, we are not seeing investors like Carl Icahn dump his investment in CHK either. That is something to pay attention to.

Gareth Soloway

InTheMoneyStocks

Just when you thought it was safe to start the car again, gasoline prices are once again heading higher. The average price of gasoline in the United States is around $3.31 a gallon. Obviously, states such as California, Hawaii, New York, and Connecticut are higher due to taxes and environmental regulations. Either way, cheap gasoline at the pump seems to be over for now.

Higher gasoline prices act as a direct tax on the U.S. consumer. Light sweet crude, which is the type of oil that we use in the United States is now trading back over $101.00 a barrel. The winter season in the United States has been exceptionally cold this winter. Cold weather and higher gasoline prices are a one-two punch to the U.S. consumer. After all, it is the U.S. consumer that accounts for 70.0 percent of the GDP (gross domestic product) in the United States. While the U.S. consumer has been resilient for the most part higher energy prices are certainly going to take its toll on their spending habits.

Traders and investors that want to track the price of gasoline should follow the U.S. Gasoline Fund (NYSEARCA:UGA). Recently, the UGA has surged higher by $4.00 since February 3rd, 2014. Today, the UGA is trading around $59.70 a share. There should be near term daily chart resistance around the $61.40 area, so further upside cannot be ruled out. Some other energy ETF's that traders and investors may want to follow include United States Oil Fund (NYSEARCA:USO), United States Natural Gas (NYSEARCA:UNG), and the iPath S&P GSCI Crude Oil TR Index ETN (OIL).

Nicholas Santiago