Good Tuesday evening, one and all.
You know, you really have to hand it to the bulls... even when they had every reason to be terrified around the middle of the day, they didn't give in. Even though the market logged a loss for Tuesday, it could have been much worse. The S&P 500 still managed to fight its way back above a key line in the sand, and is back within reach of what had been a critical support level at 2160. The market isn't out of the woods yet, but the bulls still made a major point about their resilience on Tuesday.
We'll look at some of the key details below. We've got something more important to get to first.
Did everybody see the news from Biotricity (BTCY) today? It's selected AT&T (T) as the telecom middleman to connect its mobile heart monitors to caregivers interested in remotely monitoring a patient's vital stats.
This actually a big deal, for a couple of reasons. One of those reasons is that it simply indicates Biotricity continues to take the necessary steps to ensure it's got a ready-to-go product once the FDA approves its bioflux device. The second reason it's a big deal is the more obvious one... AT&T is an incredible -- and incredibly reliable -- telecom outfit and there's no doubt the mobile monitoring hardware Biotricity makes will be linked to the caregiver's clinic and monitoring station consistently and reliably. No consumer or doctor is going to have to wonder if the equipment will have connectivity problems.
James Brumley serves up some details about the deal, and quotes from both organizations.
Speaking of Featured Stocks, at first glance it may not seem like a huge deal. The longer one looks at a chart of Sack Lunch Productions (SAKL) though, the more telling it becomes.
Take a look. Specifically, take a look at the shape of today's chart (a long-tailed bar with an open and close above some key moving average lines) and today's volume surge.
What gives? That's an awful lot of volume for a rather uneventful day. We contend there's more to today than meets the eye.
The tall bar is a minor clue, made major by the massive volume. A lot of people were getting out SAKL on Tuesday, but even more people were getting in.
We've seen this proverbial changing-of-the-guard before, usually with a bullish outcome when it's in this particular scenario. A few of the remaining would-be profit-takers from the early July reversal opted to get out with today's early dip, but a whole swath of people who felt they missed out on an early-July entry opportunity jumped on the second chance today. Tipping their hand, odds are good there are more of them out there. They just need a nudge. The stage looks like it's set though.
As for the broad market.... well, let me bring something up real quick just to clear up any confusion.
While we'll still look at the major market indices on a fairly regular basis here in this end-of-day newsletter, just know we're doing so much more with these charts in the Under the Radar Movers service and the Elite Opportunity Pro service, where not only is a market analysis a near-daily thing, it's also a pretty detailed look and outlook. If you're looking for more than a quick chart and a brief comment or two, we recommend you "take it up a notch" and become a member of one of those services as well.
In any case, yes, the lower floor of 2160 finally broke down today, but I wouldn't say it was a decisive blow. The bulls at least made sure the S&P 500 was back to its critical 20-day moving average line before the closing bell rang, and the index is within easy reach of bouncing back into the trading range it had been trapped in for nearly two weeks.
We'll just have to see how it unfurls from here.
Thing is, the broad market's crazy chart isn't the most interesting chart to look at today. That honor belongs to the U.S. Dollar Index, which rekindled Friday's plunge with another steep 0.70% loss today. The pullback brought it down to, though not under, the 100-day moving average line (gray).
This could be a big deal again. I say could be, because if this is the shape of things to come, then the weak dollar will revive the energy sector. The weak dollar will revive U.S. multinational companies that sell goods overseas. Granted, the weak dollar will also bring about inflation and accelerate the Fed's rate-hike schedule. Sometimes, though, good medicine tastes bad. We can't have our cake and eat it too. It's just a question of finding a palatable balance.
I only bring it up today to put it on your radar. This is how a major pullback for the U.S. dollar would start... as a minor one. The 100-day moving average line is a key near-term pivot point. This is going to come up as a key factor for stocks sooner or later.
Last but not least, we'd like to congratulate subscribers to the Under the Radar Movers service, who locked down a 32% gain on their Heat Biologics (HTBX) trade today. The URM newsletter picked it on July 20th, and patiently waited. Smart move. It was up by more than 50% at one point today, which is when James Brumley -- editor and guru of the Under the Radar Movers service -- wisely put a stop loss in place, knowing there was a good chance some profit-taking was in the cards. When HTBX finally started to cool off on Tuesday, URM members were ready, making an exit at a price about 32% better than their entry a couple of weeks ago.
Now, that's not to say all the Under the Radar Movers' trades move that well, that fast. Like we mentioned in yesterday's newsletter though, the service has a way of finding hidden gems. It doesn't take very many trades like Heat Biologics to really pump up a portfolio in a short time.
Here's how you can get the newsletter's next big HEAT-like trade.