Tuesday, October 22, 2013

iShares MSCI Italy Capped (NYSE: EWI) My No. 1 Ranked International ETF is Signaling 'Buy' Now

Some studies have shown that most of a stock's return is due to the direction of the trend in a bull market. This can be seen in stock market breadth data. Breadth indicators include the advance-decline line and other data series that measure the number of stocks going up or down.

On days when broad market averages like the S&P 500 close higher, we generally see most stocks close up and breadth is positive. When the S&P 500 is down for the day, we usually see a majority of individual stocks fall and breadth is negative. This is true for weekly and monthly data as well as daily time frames.

Bull and bear markets also tend to play out on a global scale, and the indices of most countries will move up and down together. This tendency of global stocks to move together has been increasing in recent years as global economies have become increasingly interconnected.  (more)

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The Home Depot, Inc. (NYSE: HD)

The Home Depot, Inc. operates as a home improvement retailer. Its stores sell building materials, home improvement products, and lawn and garden products, as well as provide installation, home maintenance, and professional service programs to do-it-yourself, do-it-for-me, and professional customers. The company's installation programs include products, such as carpeting, flooring, cabinets, countertops, and water heaters. It serves homeowners, professional remodelers, general contractors, repairmen, small business owners, and tradesmen. As of September 26, 2013, the company operated 2,258 retail stores in 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces, and Mexico. The Home Depot, Inc. was founded in 1978 and is based in Atlanta, Georgia.
To review HD' stock, please take a look at the 1-year chart of HD (The Home Depot, Inc.) below with my added notations:
1-year chart of HD (The Home Depot, Inc.) HD has been trading mostly sideways for the last 5 to 6 months. Over that period of time, the stock has formed a resistance area around $80 (red), In addition, HD has created a strong level of support at $72 (green). At some point the stock will have to break one of those two levels.

The Tale of the Tape: HD has identifiable levels of support and resistance. The possible long positions on the stock would be either on a pullback to $72, or on a breakout above $80. The ideal short opportunities would be on a break below $72.
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5 Stocks Ready to Break Out: AMED, ARTX, EBIX, FXEN, PTIE

Trading stocks that trigger major breakouts can lead to massive profits. Once a stock trends to a new high, or takes out a prior overhead resistance point, then it's free to find new buyers and momentum players that can ultimately push the stock significantly higher.

One example of a successful breakout trade I flagged recently was renewable energy player Hanwha Solarone (HSOL), which I featured in Sept. 26's "5 Stocks Ready to Breakouts" at around $4.10 a share. I mentioned in that piece that shares of HSOL were uptrending strong over last few months, with shares making mostly higher lows and higher highs, which is bullish technical price action. That move was starting to push HSOL within range of triggering a big breakout trade above its 52-week high at $4.28 a share.  (more)

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OIL Elliott Wave Analysis : Corrective Pullback With In Uptrend

OIL Daily
Few weeks back oil reversed sharply from the 112 high when a five wave rally from 91.00 area completed a larger degree of an extended wave 3). As such, the contra-trend reaction is called a corrective retracement that could now be bottoming. We are tracking red wave 4) that may look for a support around 50% Fibonacci retracement level compared to wave 3); that’s one of the most important Fibonacci levels when you are looking a reversal point. As such, be aware of a turning point to the upside.

OIL 4h
On 4h Chart Crude oil reached new low last week around 100 mark which is a strong psychological price that could react as a support. We also see the wave pattern which is pointing for a turning point. The latest count shows idea of an ending diagonal placed in wave C position that is final leg of a corrective retracement from 112. Bullish divergence on the RSI also suggests that lows are near. We however want to see a strong bounce through the upper channel line to confirm a bullish reversal.  (more)
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“The Financial System Was Within Hours Of Absolute Collapse”

kingworldnews.com / October 21, 2013
Today KWN is pleased to share an incredibly powerful piece which exposes the frightening fact that “the financial system was within hours (and a few phone calls) of an absolute collapse.”  This masterpiece from 50-year veteran Art Cashin, who is Director of Floor Operations at UBS ($650 billion under management).  Not only does Cashin write about how close the system was to complete collapse, but he also describes his firsthand experiences from that frightening moment in time.

October 21 (King World News) – “On this day (-2) in 1987 (that’s 26 years ago, if you are burdened with a graduate degree), the NYSE had one of its most dramatic trading days in its 220 year history.
It suffered its largest single day percentage loss (22%) and its largest one day point loss up until that day (508 points).  No one who was on the floor that day will ever forget it.  While it was an unforgettable single day, there were months of events that went into its making.
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