5/22/2018 Markets close a bit lower, MU spikes on Intel deal and 10 billion dollar buyback news. Watch out for Fed meeting tomorrow!

Fun Fact #53

MU announced a buyback along with an Intel deal day.  As a result, MU surged despite the entire market being down!  Read more here


Market Stocks 5_22_2018.PNG

Note that the above price changes are for the last 2 days.  I am still bullish.  


QQQ 5_22_2018.PNG

I think QQQ has made a bull flag pattern.  This pattern is formed when the price goes up vertically and then consolidates.  I’ve drawn the flag on the chart above.  The target if QQQ breaks out above 170 is the length of the flag pole, which is about 8-10 dollars depending on how you draw the flag.  That means QQQ could reach 178-180 within a few weeks after breaking out over 170.   The only concern is that the move upwards wasn’t on significant volume.  


DIA analysis 5_22_2018.PNG

DIA, like QQQ, also looks quite strong.   Since DIA broke out above the resistance level near 247.5, I think there’s a good chance DIA will bounce upwards from the 245-247.5 support zone.  I’ve highlighted that support zone in the chart above.  Also, please note that the volume on down days is significantly lower than on up days, signaling that buyers are still in control of the price action. 


SPY 5_22_2018.PNG

The SPY is doing the same thing as the QQQ and DIA.  It is currently taking a break after a strong upwards move.  I think the odds favor a breakout upwards, but if SPY closes below 270, I think we move significantly lower.  


BABA 5_22_2018.PNG

Speaking of bull flags, here’s the chart of BABA.  Notice how BABA had a vertical move up on huge volume, and is now consolidating.  The volume has decreased significantly as well which is a great sign.  A break above 200 signals a lot more upside.  The length of the flag pole is 30, so if BABA breaks out above 200, the measured move up would be to a price of 230.  I analyzed the weekly chart of BABA in a previous blog post, and the chart also hints that a break above the 200-205 resistance level signals a lot more upside.  

Thanks for reading, and I will see you Thursday!


5/14/2018 The US markets close mostly flat. BABA hits 200 on the penny as Chinese ADRs rally. MU and other semiconductor stocks close quite a bit higher as well.

Fun Fact #48 

Samsung did a 50 to 1 stock split recently, and shares soared as much as 8.7% as a result.  Read about that here


Market Stocks 5_14_2018


BABA daily 5_14_2018.PNG

BABA hit 200 on the penny this morning, but dropped a little bit to close the day.  The daily chart looks so bullish that I’m thinking it’s a trap!  Either way, I’m holding BABA for the long term (at least a year), so small fluctuations don’t matter much to me. 

The key levels I’m watching for on the longer term perspective are a break above the all time highs at 206.2, and a break and close below 165.  

Take a look at the monthly chart of BABA below.

BABA Monthly 5_14_2018.PNG

Please note that this month is only half over, meaning the monthly candle you see on the chart now will certainly change.  Either way, we’ve got something that looks like the rising three methods candlestick pattern.  

5/10/2018 The S&P500 breaks through a key resistance level as Apple continues to climb. BABA reaches a quarter shy of 200 and reverses sharply lower. NVDA smashes earnings but drops over 3% anyways.

Fun Fact #46

Since a stock price drops the same amount as the dividend declared, you may be wondering why companies even give out dividends at all.  I recently learned in my accounting class that dividends are a “signal” that the company is financially healthy. 

Growing dividends = healthy company.  It’s as simple as that! 


Market Stocks 5_10_2018.PNG


SPY 5_10_2018.PNG

If SPY can sustain the breakout above 271, we will likely see a test of the resistance zone from 275-280.  

BABA 5_10_2018.PNG

BABA continues to have trouble pushing through the resistance zone from 197.5-200.  An upward break above 200 might send the stock soaring above 205.  I expect some profit taking soon.  

5/9/2018 Markets rally led by FAANG stocks. QQQ breaks through key 167 resistance level. MU jumps 5% on positive outlook from Morgan Stanley.

Fun Fact #45

Companies do stock splits to “signal” to shareholders that their company is doing well.  A secondary reason for a stock split is to increase liquidity (more easily converted to cash) by allowing people to purchase shares at lower prices.  Let’s say you had $1,000 and wanted to invest in Amazon, but since the share price is currently near $1,600, you wouldn’t be able to buy any Amazon.  If Amazon did a 10 to 1 stock split, making the share price $160, you would be able to buy 6 shares with your $1,000! 


 Market Stocks 5_9_2018.PNG


Although yesterday I was quite bearish because the price action was hinting that we would close red today, since we closed green, I maintain my bullish bias from 5/7.  Google hit my “if wrong” target after jumping nearly 3% today.  

I’m still skeptical on Apple’s current price action and think it will pullback to 180 soon, but the markets don’t care about what I think.  


QQQ 5_9_2018.PNG

QQQ broke above a key resistance level at 167 today.  This is very bullish, but beware that since everyone looks at the same chart, this could be a classic “bull trap.”  Bull traps occur when bulls get baited into buying right as price reverses sharply lower.  


BABA 5_9_2018.PNG

Generally, I’ve found that if BABA drops when the market goes up, this is a sign that BABA will drop further.  We will likely find out if this is true after tomorrow’s close.  


CMG 5_9_2018.PNG

Chipotle (CMG) has been trading in a very tight range in the last 2 weeks.  Look for a breakout in either direction either above or below the rectangle that I’ve highlighted in the chart above.  You can buy CMG on a break above 430, and short it on a break below 415.  Or you can be aggressive and just short it when it hits 430 with a tight stop.  I favor a downward breakout with a target of 390.  

5/7/2018 Technology stocks lead the way higher. Time to take profits on Apple (AAPL)?

Fun Fact #43

Warren Buffett still plays Ping-Pong!  He played against Bill Gates at Berkshire’s annual shareholder meeting today. Source. 


QQQ daily 5_7_2018.PNG

QQQ is running into overhead resistance. We will have to see if QQQ can push through this level tomorrow or if we pullback from here.

AAPL 5_7_2018

Apple is the largest component of QQQ, and it looks like it has found a temporary top.  It looks good to buy in the 177.5-182.5 zone, although I favor the high 170s since it offers a better risk to reward. 

BABA 5_7_2018.PNG

One more push, and BABA will be at 200 again! Unless you think we break out over 205, it’s probably a good idea to take partial or full profits near this price. 

5/6/2018 Weekly Analysis and Stocks to Watch!

QQQ Weekly 5_6_2018.PNG

The weekly chart of QQQ is above.  I’ve circled the lower tails displaying buying pressure, as well as highlighting a divergent high.  A divergent high means that the index/stock made a higher high, but the RSI indicator made a lower low.  That is bearish.  However, we are still in an uptrend, so it’s generally a better idea to buy on dips instead of short selling high points. 

SPY weekly analysis 5_6_2018.PNG

The weekly chart of SPY is currently stuck between the support and resistance area.  That makes the direction unclear, although currently, there’s more evidence supporting a move up. 

BABA weekly chart 5_6_2018.PNG

Look at the weekly chart of BABA above.  I’ve mentioned in multiple posts that BABA was a good buy in the 165-175 zone, and a good sell in the 190-200 zone.  BABA is now approaching the 190 area, which represents a good price to sell at.  However, I believe BABA can hit 200 on this move up before pulling back because BABA had good earnings last Thursday.  Note that a break and close above 205 on the weekly chart would be very bullish.  

MU weekly 5_6_2018.PNG

Here’s the weekly chart of MU.  I think MU is a good long term hold and represents a good swing trading opportunity here.  As long as MU holds 45 on the weekly chart, I think we retest the highs near 60.  Do note that we’ve made a divergent high.  Like I described in the QQQ chart near the top of the page, this is bearish.  As you can see in the chart, prices fell from the recent high. 

AAPL 5_6_2018 Weekly Chart.PNG

Apple broke out to an all time high (ATH) after selling off hard in the last few months. Although Apple is up 13.25% in just one week, the chart hints that Apple has enough juice for another move up before pulling back.  If we move up, I suspect a test of 190 since it’s a nice round number. 

CMG weekly 5_6_2018.PNG

Chipotle (CMG) recently broke out upwards after releasing a very strong earnings report.  Judging from the price action and moving averages, I think CMG will pullback to at least the 380-400 area from a weekly perspective, which is another 5-10% down.  Of course, the upward momentum could easily carry the stock higher too, but my bet is down. 

Thanks for reading!


5/4/2018 Markets rocket higher, with Apple leading the way and reaching a new all time high. BABA had a wild swing today, but closed significantly higher.

Fun Fact #42

A deer market is a flat/neutral market, being neither a bull nor bear market.


Market Stocks 5_4_2018.PNG

Apple hit my target 3 weeks ahead of schedule… Interesting. I’ve put in a target for BABA now that earnings are out of the way.

From the current look of things, it looks like the markets won’t drop unless some unexpected event happens. Perhaps most of the above stocks will reach my “If wrong” targets instead.

This morning, I woke up to see BABA in the premarket hovering near 191 due to an earnings beat. By 8:30 AM, BABA was red (dropped 4% from where I was watching it), which was quite uncomfortable. After checking back on it at the end of the day, I was pleasantly surprised 🙂

Warren Buffett announced a purchase of 75 million additional shares of Apple (AAPL) in Q1 this year. That sent the stock flying today, carrying the entire market up with it. Job payroll numbers came in much lower than expected, which I guess was “good news.”

BABA 5_4_2018.PNG

Notice the extremely high volume today. Although the target is set for 5/25, I could see BABA hitting that 200 target within 5-7 trading days. If I’m wrong, I expect BABA to retest 175, which is the bottom black horizontal line in the chart above.

AAPL 5_4_2018.PNG

Apple has hit my 183 target 3 weeks ahead of schedule. Although I could see it moving higher in the coming weeks (perhaps to the 188-190 level), taking partial or full profits here seems appropriate. After glancing at the last few times when Apple made a new all time high, it seems to either rocket higher, or have a significant correction.

I look forward to updating my blog with weekly charts this weekend! Thanks for reading, and have a great weekend.

5/3/2018 The major indexes recover from large morning losses and most close slightly down. The Dow Jones bounces off the support zone near the 200 day moving average.

Fun Fact #41

During yesterday’s earnings call (5/2/2018), Elon Musk cut off the analyst that was asking him questions and said: “Excuse me. Next. Boring, bonehead questions are not cool. Next?”

Immediately after the next question, Elon Musk irritatingly replies: “We’re going to go to YouTube. Sorry. These questions are so dry. They’re killing me.”



Market stocks 5_3_2018.PNG

DIA 5_3_2018.PNG

Dow Jones was down nearly 400 points today. As you can see in the chart of DIA, the ETF representing the Dow Jones was down 4 points in the morning. 

I’ve circled each time the index has bounced off at or near the 235 level. If DIA closes below that level, we could see another 5-10% more downside. 

Tomorrow, Alibaba (BABA) is reporting earnings at 6:30 AM eastern time before market open. Since there are low expectations going into earnings, I think there’s a good chance BABA will move upwards and test 190 tomorrow. Anything can happen though. 

4/23/2018 Markets mostly steady. Looking like we will have a nice move upwards tomorrow. Google earnings were ‘average.’

Fun Fact #33

Did you know that Elon Musk (CEO of Tesla) has recently been sleeping on the Tesla factory floor to save time? And yes, Elon Musk is a god. Here’s the CNBC story


Market Stocks 4_23_2018.PNG

Sorry for the late post today. Life decided to slap me in the face, but I decided to get back up and slap it right back. I figured as long as I update my blog before midnight Eastern Time, we are still good to go. I still have 30 minutes to go as of this writing. 

Without further ado, let’s discuss some stocks! 😀

Although the major indexes didn’t drop much today, the smaller cap stocks like MU and SQ didn’t perform very well. Chinese stocks also didn’t do too well either as you can see from BABA’s stock price. 

I think MU is looking good to buy in the 46-49 range. You would place your stop loss 3-4 dollars below the entry, and a profit exit in the 57-62 dollar range. Note that “SL” in the chart below stands for “stop loss.”

MU analysis 4_23_2018.PNG

The daily chart of QQQ is below. Read the text below the chart for details.

QQQ 4_23_2018.PNG

As long as QQQ stays near or above 162, I think we see higher prices ahead. We are currently right at that level which is quite scary. Another significant red close tomorrow will probably make me bearish in the short term. Otherwise, I stay cautiously bullish. 

On a final note, let’s look at Apple (AAPL). 

AAPL 4_23_2018.PNG

Apple broke through a key support level of 165 today, but closed back above that level. Notice how the 165 level also corresponds with the 200 day moving average (the red, upward sloping line above). 

4/6/2018 A Look at Next Week. QQQ, BABA, HLF, TSLA, AAPL.

Fun Fact #21

Did you know that Bill Ackman, the famous manager of the hedge fund “Pershing Square,” had a one billion dollar short position on Herbalife (HLF)? His reasoning for the massive short position was because he claimed Herbalife was running an illegal pyramid scheme. Thus, he mentioned that he would take his Herbalife short position “to the ends of the earth.” Unfortunately, he had lost so much money for his hedge fund that recently he announced that he no longer has a position in Herbalife. There’s a movie about his story regarding Herbalife called “Betting on Zero.” I found the movie quite entertaining. 


4_6_2018 Market Stocks

I’ve modified my two week targets (for April 20th) down a little bit, but I’m now short term (2 weeks) bullish. I’ve also added Tesla (TSLA) to the watchlist because I think there’s a good chance it will resume the downward trend. Unfortunately there are no shares available to short (at least for me), but you could always buy puts. 

Today we had another sell-off that accelerated into the afternoon. I had an intra-day update where I predicted that as long as QQQ held above 158, we would see a 160-161 close. Unfortunately, we blew down below 158 and closed well below that level at 156.63. 

Although today’s leg down puts QQQ slightly below the weekly trend channel at 160, I’m still bullish for the next two weeks. I’m bullish because the current sentiment is extremely bearish, which means everyone already sold. If there’s no sellers left, the price can only move up. For the intermediate to longer term (1-3 months), I’m neutral or slightly bearish due to political uncertainty and mid term elections. Until the 200 day moving average starts curving downwards, I think the uptrend continues. I don’t think it makes much sense to short the indexes since they are near support levels and could see a big bounce.

Being too heavy on the long side also doesn’t make much sense with all the political uncertainty. The best approach would be to be net neutral or slightly long. This means you short sell stocks and go long on stocks such that your overall exposure to the market is approximately 0. Hence, even if the market goes down a lot, your short positions would realistically make you money while you would lose money on your long positions. If done properly, this net neutral strategy could maximize returns and reduce a lot of risk. 

I really like the trade of going long on BABA right now. As long as we don’t break down below the 160-165 level, I think we are going to bounce back to the 180 – 190 level. 

BABA weekly 4_6_2018

Above is the weekly chart of BABA. Notice how buyers get aggressive near this price level. The short term momentum is still down meaning you could wait for confirmation and then buy in. However, if you wait for a confirmation that buyers are present, you won’t have as good of a risk reward ratio. The entire market could have another sell-off next week due to more trade war issues as well as Russia retaliating against the Russian sanctions. This would almost certainly drag BABA down below the low 160s. 

QQQ analysis 4_6_2018.PNG

The daily chart of QQQ is above. I’ve drawn in a rectangle to show visually where buyers start stepping in. Although we could see another whipsaw like on February 9th (when QQQ hit 150 briefly), I think the index will hold the 154 level here.

One thing to note is that if AAPL falls below 165, I expect QQQ to also break below 154. 

Good luck trading next week, and thanks for reading like always! 😀