Posted by & filed under Thoughts on stock.

Here is the SPDRS sector ETF YTD performance graph. As you can see XLY (consumer discretionary)  and XLV (Health Care) are doing really great, up more than 10% year to date.  I guess XLV is a good option . Stay away from XLE (Energy)  because Oil does not look good throughout the 2nd half of 2015 due to oil gluts and more possible gluts from the Iran Nuclear deal.  Also many stock market analysts foresee market correction at the end of this year between October and December due to the possible interest hike, so be careful out there.

 

sector

Posted by & filed under Uncategorized.

Do you know that there is a stock broker that charges no commission?

While other brokers charge you $7 ~ $10 per order, but they do not charge anything. I did sign up and that is true. This is just amazing.

https://robinhood.com/

 

There are some limitations.

You will need to use iPhone to trade stocks . It is not possible to use web browsers under PC. But they are working to make it available under Android phone , probably this year.  Also I don’t think the margin account is available  at this time.

 

So if you are just getting started with stock trading, I highly recommend Robinhood.

Thank you!

 

Posted by & filed under Thoughts on stock.

One of the indicators I like is the Volume change. I closely monitor the volume change of the stocks closely. If the volume change percentage is greater than 100%, there was some kind of heavy buying or selling occurred that day which possibly means that large institutions were doing the transactions. I strongly believe that those large institutions have better idea and may know something that I do not know about the stock. So if there is large volume change, there could possibly some opportunities.

In the main page end of day stock table, there is Volume% column which is the percentage of daily volume against the past 50 days volume average. If you click on the Volume% column header, you will be able to sort the table by ascending or descending order. So try clicking the column and sort the table in the descending order now.

If you are looking for buy opportunity , searching for “RSI7 buy alert” + “high volume %” + “up price” may be a good way to find possible long position.

Here is the quick result . The top number one entry is Aeropostale Inc (ARO).
aro_20150606
If you check out the graph , it looks pretty good showing RSI 7 and MACD are improving after the BUY alert. The stock has advanced 4% since the buy alert was on. Make sure to check the Google Finance  and search for any clue why there was the sudden volume change.
aro_20150606
I just checked the Google Finance, and saw this news Aeropostale CEO bought quarter million shares today.Maybe the CEO knows something about the inside of the business and he saw positive futures, and that’s why he purchases so many stocks. It is hard to tell if this is a true bullish sign, but I think there is some upside room to grow at least for now. But you should be diligent and closely monitor the price once you buy the stocks.
google_finance_aro_20150606
Disclaimer: I don’t own ARO and I don’t plan to own one.

Posted by & filed under Thoughts on stock.

It seems that people are more interested in the popular bullish stocks rather than looking for any opportunities in the weak bearish stocks. Due to the strong US economy and dollar , the stock market became unstable. And it seems that people tend to make safer bets on the ones with continued bullish strength instead of placing bets on bearish stocks even they show the positive technical signs.

To find the bullish stocks, I recommend to use RS indicator. There is the Relative Strength (RS) technical indicator in my site. It’s located in the last column of the main RSI table. It’s basically about the strength of the stocks compared to S&P 500 for 52 week period. So higher number of RS means that the stock is stronger and more positive compared to S&P 500. If the RS is negative, the stock is performing worse than S&P 500. Naturally, if the RS has been increasing or staying high over long period, you would know that the stock has been doing well over time .

bullish_201505

 

These four stocks are the top 4 entries in terms of RS indicator.  Skyworks Solutions Inc  (SWKS) , Jet Blue (JBLU), Incyte Corporation (INCY), and Avago Technologies (AVGO). I think if you should monitor these closely. They are all good quality with continued bullish trends for long time. It could be a good idea to initiate position when the daily RSI 7 is under 30 and bounce back over 30 for these stocks. For example, SWKS briefly touched 30 level on 4/30 but bounce back right away and up 19% as of 5/30. . And JBLU has touched below 30 and trying to move up according to the graph. This could be a good chance to start a position. But please check out about the company and analyst’s opinions before making any decisions. Also I recommend you to avoid initiating the position near the earnings reports date, because it could be highly volatile sometimes. You can check the earning report schedule on Google Finance website.

jblu_20150530

 

 

So have fun researching and let me know if you have any questions. Thank you for visiting my site!

 

Disclosure: I do not have any position on the stocks mentioned in this article. However, I do plan to initiate position on JBLU next week.

 

 

 

Posted by & filed under Thoughts on stock.

Federal Reserve Chair Woman Yellen said that FOMC will increase the interest rate this year for sure. That had big impact on dollar and so market and commodities (Gold , Oil ,and etc …) are down. They are inversely correlated. When dollar goes up , the market and the commodities go down. And when dollar goes down, the stock market and the commodities are up.

That’s why everybody is so nervous about the interest rate. People are afraid that the interest rate hike will put an end to the bull market. Any little positive news or comments from Chairwoman Yellen directly affect the market these days.

One thing I am bit curious is that the market did not react much last Friday when Yellen mentioned about the interest last week. It’s probably because it was right before the Memorial day holiday and many have already left for the vacation.

I decided to close my few positions today. I wasn’t doing well anyway. I can only think that this trend will stay for few more days at least.

Here is the S&P 500 index technical indicators CCI, Full STO, and RSI. Those technical indicators are running to the bottom.

If you compare now to the period between first two weeks of March, the patter looks similar but then the dollar directly influenced the trend.

sc

Here is the UUP (dollar index fund ) chart. It suddenly spiked during the first two weeks of March directly affected the S&P 500. And it is doing the similar pattern now.

uup

I am not sure how long this bullish Dollar trend will stay but we have several major economic reports coming out next week including the employment report. If those reports are better than the expectation, it’s for sure that the dollar will be strengthened more. Which will negatively impact the financial stock market.

So be careful out there. You can just wait for now until all the technical indicators hit the bottom and bounce back. There are not many opportunities at this time. I strongly recommend you to wait for now.

Thank you for visiting my site.