Losing Averages

The S&P 500 is trading right at the 50 day moving average, a level where the average investor looks to gauge the current trend. Most sophisticated traders claim that the moving averages are all balderdash, but it is a psychological level worth noting in my experience. The Russell 2000, the small cap index– a measure of risk, lost both the 200 & 50 day moving average today and does not look healthy. The Nasdaq, $COMP, lost the 50 day MA and appears to be gunning for the 200 day moving average. See charts below:

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What does this all mean? It could mean nothing. We could get some positive news over the weekend which at these levels could provide a great entry point for stocks. The opposite could be true, and bad news happens, leaving levels & moving averages far far behind. You could say we are at a make or break point for the market here. I sold a bunch of longs earlier in the week and am comfortable sitting on the sidelines until I get a better gauge on further direction.

No need to make stupid bets here, let’s see what Monday brings. Enjoy the weekend all and make sure to join us on the other side of iBankCoin, inside Exodus.

The last few days for momentum names have been a lot more violent than the indices show. Today, we are seeing a damn near perfect touch of the 50 day moving average in in the S&P 500. We can use this morning’s low to manage risk going forward, 2952.   Should today’s low fail, we could have a lot more pain in store with the next line of defense around 2870. Have a look at the daily chart below:

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One name that we have been heavily watching as of late is Twitter. The stock pulled all the way back to support after a failed move to take out some recent highs. Dip buyers are eager this morning, defending yesterday’s low, $41.06. $41 needs to hold or we could be in for some more pain in Twitter.

I’m not in a rush to do much here as many charts have some technical damage to work through. We are now in show me mode, and the bulls need to show me that new highs are still in play.

Here are some tickers from our momentum screen worth an eye today:

$SNAP was upgraded this morning by Guggenheim analyst Michael Morris to Buy from Neutral with a price target of $22. Morris states, “the company is well positioned to outperform the Internet and Media space through year end and provide an investor return of nearly 30% over the next 12 months, Morris tells investors in a research note. He believes the combination of “strong” usage trends, “industry-leading” access to 18-34 year-old users, and platform improvements should drive growth in Snap’s advertiser demand. Further, the analyst says Snap’s long-term revenue potential is the most underappreciated in his coverage universe. This should support a sustained premium valuation multiple, argues Morris.”

We’ve successfully traded this stock all year playing dips and selling rips. From nominating this as my stock of the year when the stock was trading near $5, we caught a quick double to start the year. The stock probably sees $20 before year end, but I am out with profits once again with today’s action. I will be on the lookout for another dip to buy.

$SNAP has been a great trading vehicle this year!

There was a story over the weekend on why Disney’s CEO, Bob Iger, passed on the idea of buying $TWTR. In short, he basically said Twitter is a very nasty place, you can read the story HERE.

$TWTR opened up basically flat after the story, but has since made a turn higher, breaking through Friday’s high, $43.84 as I type. Let’s see if the stock can grow legs here, the technicals are in favor of a move higher.

Disclaimer: I am long $TWTR, and it continues to be one of my favorite ideas here.

At one point today we were 6 points away from making all-time highs today in the S&P 500. Could tomorrow be the day for new highs? Anything is possible, but judging from our hybrid screen, 200+ names, there was definitely some buying pressure today from the bulls. In the event we see the market get loose to the upside as we end the week, here is what they were buying today: CLICK HERE FOR SCREEN

I’ll be watching the following Hybrid Movers from said screen tomorrow, see below:

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For those of you unsure just what a hybrid mover is, get up to speed with our Exodus service. CLICK HERE to find out just what a hybrid mover is.

Facebook’s Vice President for Augmented and Virtual Reality, Andrew Bossworth, explains the new portal device rolling out from the company. Facebooks wants to be the device that connects you to your loved ones always, and are emphasizing more privacy, as they should. I can only imagine what life will be like, 20 years from now, with your very own portal device. We are living in interesting times.

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Let’s watch the price action here for $FB as we are near an action point. I’m not sure if this portal news has enough to catapult the stock higher, but it could be more fuel for the move. Over $189 and $FB takes aim for $200+. Keep it on watch here:

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More about the Portal from Engadget HERE.