The Best News You Never Heard, & a Market Outlook
There's a Reason Stop Signs are Red.
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I'd say good Tuesday to you but that probably wouldn't be appropriate today. If navigating the markets were easy, everyone would be doing it. Unfortunately, stocks and the major averages always usually go down way faster than they go up and today is no exception. Those of you SCN Members who are market professionals or rely on the markets to make a living know exactly what I'm referring to. You can go from hero to zero or from the penthouse to the outhouse in a New York minute so the most important point I want to get across today is making sure you understand the value of protective and trailing stops. More on that in a bit.
Although we've had this market pegged for months now, we got caught yesterday with our pants down in more ways than one. First, we've been relying on the hourly bar chart of the NDX to suggest positioning for what has been consistent and easy short-term profits until today when the market gapped down below that 25x5 level on the hourly chart and appears to be setting up for a volatile next few days. I've included a daily and hourly chart to paint the picture. However, I suggest we stay out of the way and let this market figure out what it wants to do for now. I mentioned yesterday that if the trend was going to reverse, we're likely going to see some significant volatility and today proves my case.
New Idea Revealed - IRYS... A Groupon Killer?
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We're just going to dig into today's new trading idea. As a matter of fact, this particular trading idea may end up being an excellent investing idea for the long haul. Time will tell but for now, timing is of the essence. Most all of our winning trading ideas in recent months have incorporated some sort of timing component for one reason or another. Either we had reason to believe the stock was going to start getting a lot of attention or the chart was setting up perfectly for a trade... or both.
When we brought you Rite Aid (RAD), it was strictly technical with a potential buyout hunch looming. The stock has yielded a 43% return in a few short months. When we brought you VocalTec (CALL) a short while back, the chart was consolidating sideways and appeared to be setting up for another nice leg up. CALL has since yielded roughly a 42% gain. When we issued a trading alert on U.S. Precious Metals (USPR) at $.16 cents, we had reason to believe the stock was going to start getting a lot of attention. Sure enough, volume piled into the stock taking it to $.36 cents providing over 100% return in less than a month for SCN Members who acted. When we pounded the table on Chromadex (CDXC) in early January at $.60 cents because the chart was setting up and again we believed the stock was going to start getting a lot of attention, shares of CDXC doubled in a few short weeks giving our Network Members another 100% return winner. We have had a number of other winners of late and can only think of one or two small losers in the last three or four months so I'd say we're doing well by picking our spots.
I'm convinced today's idea fits the same bill. The chart is reflecting some very positive interest and we believe IRYS is going to start getting a lot of attention. I'll get into what the Company's doing in a bit. The story is very compelling and our long history of working on the Internet tells me their new software as a service technology could be a real winner if they can execute and achieve critical mass in short order. First though, let's take a quick technical look at iTrackr Systems, Inc. (IRYS) because the interest has been increasing of late and I think we've only seen the tip of the iceberg.
Is Gasoline Going Higher? Trading Black Gold.
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I learned a long time ago that those people who hate Mondays simply don’t embrace the thought of looking forward to making money. Why fight it when you can jump in both feet first and make it Money Making Mondays?
The markets started off a bit lazy this morning which is to be expected since Friday was such an impressive day for the bulls. However, as usual the markets shrugged off the early morning selloff only to stage a comeback as I type and is heading higher. Again, the trend is your friend... picking up the pullbacks and selling into the strength continues to provide a very profitable trading pattern but you have to be quick because this market isn't giving anyone much time to position on the pullbacks.
If you missed our edition from Thursday on where we think the market is headed, I suggest you have a read. It points out a target for the NDX which should give us a pretty good window from here to there to continue making money. I think it's imperative we continue to scalp profits in this extremely bullish market because when I went to fill up my gas tank on Friday, it was a whopping $87 and I don't even drive a SUV or truck! Unreal. That evening we ended up in the all-important conversation of why gas prices are so high and it spurred me to take a technical look at crude to see if I could peg where it's headed.
Where This Market Is Headed Short Term
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Since we're not getting much in the way of volatility or news with any of the major indexes today and all of our trading ideas are doing quite well with no major updates right now, I thought it might be an excellent opportunity to take a look at where we think this market is headed in the near-term. Knowing targets and what levels the market is gunning for is extremely important when you're actively looking to scalp profits via short-term options trading or positioning yourself in an idea that's trending with the major indexes.
The trading pattern that has been working for weeks now is to buy the dips and sell the rips so why stop now? There's nothing that has convinced us anything different is on the near horizon so let's continue to go with it. Yesterday, the market sold off some only to rebound this morning thus continuing to prove our analysis correct. Now, with a target number pegged in your head, it gives you a pretty good landscape to navigate your way to some very decent returns if you are willing to strategically pick your spots on any weakness.