Full-time stock trader. Follow me here and on 12631
Joined Apr 1, 2010
8,861 Blog Posts

Welcome to the Lake Show

Kobe-Championship Ring

I took off a piece of my LAKE long, at $10.21 from $8.59, $8.94 entries, the HazMat suit Ebola-related play, inside 12631 this morning.

I discussed this name in recent weeks on the blog as potentially benefitting from a rotation away from the likes of Ebola-related drug firms TKMR towards HazMats.

Also keep an eye on APT, another Ebola play rocking.

As I have been maintaining, these Ebola plays can trade “in their own world, oblivious to the broad market.


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Divergences Even in the Strongest Indices

The following is just a small excerpt from my latest Weekly Strategy Session (please click on that hyperlink for details about trying it out) which I published for members and 12631 subscribers this past Sunday.

If the rally in the market late-last week seemed impressive on paper, but as not impressive individually, it was due to unimpressive participation across the board. As we have been noting, even the stronger indices have been sporting bearish RSI divergences since earlier this year. 

For reference, the RSI is simply the “Relative Strength Index” used to identify changes in technical momentum. Above 50 is generally considered a bullish RSI, with above 70 viewed as overbought. Trending below 50 is considered a bearish RSI pattern, with below 30 considered oversold. 

Here, the RSI is negatively diverging on both the S&P and Nasdaq weekly charts, meaning that upside momentum has clearly slowed in each index’s prior two peaks. 

Given the weakness in the Russell, a cautious stance is maintained unless and until bulls can resolve these divergences in their favor via a powerful move to fresh highs in both price and RSI.

Please click here to continue reading

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Late Night Strategy for Tuesday


Some extended consumer names, such as Marriott, are showing signs of breaking steep trends.

On the daily chart, below, note the potential bear flag consolidation ripe to break lower. Because of the steepness of the prior uptrend, the stock becomes all the more enticing of a short on weakness. Similar comments apply to the likes of CAR HOT WYN.

Drop me your top tickers overnight.



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Stock #Market Recap 10/06/14 {Video}

If you enjoy my blog posts and videos, then I would encourage you to please click on this 12631 hyperlink for more details about joining our great team of traders at a very reasonable price. 12631 is a trading service which @RaginCajun and I direct here at iBankCoin.

In addition, please see the top of this video for details about attending our iBC Investors Conference this November.

Enjoy tonight’s video, and enjoy your evening. 

Direct Vimeo Link Click Here

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Snapback City


Plenty of snapback rallies, finally, in beaten-down commodities, especially the softs like corn, sugar, and wheat, playing catch-up to coffee.

Equities were squishy but have not yet rolled back over.

Ebola plays were extremely volatility today, as expected.

More on my video market recap after the bell.

See you there.

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Looking for the Horns


To be sure, crude bulls have been a weak bunch of late.

However, today’s upside reversal in many commodities to accompany the Dollar weakness sure smacks of at least some relief for a snapback rally.

Keep an eye on the daily chart “hammer” reversal candlestick on the crude oil ETF, below. A close near the highs sets up some more upside this week for a counter-trend bounce.

I suggest keeping stops for any longs below today’s lows, if not tighter.



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