KWN SPECIAL: TRIGGER FOR WORLDWIDE CRASH, MAJOR MARKETS & MORE – John Mauldin:

kingworldnews.com / Sunday, September 14, 2014
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Tesla TSLA Breaks Down From Traditionally Bullish Pennant

Shares of Tesla are down Monday morning after breaking down from what normally is a bullish continuation pattern. This tight consolidation throughout the first half of September is what most technicians would consider a bullish pennant that traditionally resolves itself in the direction of the underlying trend. But in this case, the pattern broke down rather than up.
Here is a daily candlestick chart of $TSLA where you can see this break. The bulls are still in control here from an intermediate perspective as long this resistance from February and August turns into support. Our polarity principles teach us that former resistance should become support:

So far this appears to be the case as shares of TSLA stopped dropping once they hit this 264-265 level. But a break below that could be disastrous for this popular momentum name.
I would also use this uptrend line from the May lows as a key level for risk management. Bulls are fine as long as that 264 holds, otherwise a test of this uptrend line is in the cards. If neither one of those can serve as support, then a test of the 200 day moving average is likely, which is near the 210 level.
Something else worth mentioning is that a breakdown below this former resistance near 264 would confirm that this breakout earlier this month was a failed move, and would suggest a fast move to the downside is coming. So although we do have that uptrend line in the 250s, the former resistance shaded in gray is really my key level.
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Three Charts Every Trader Should See Now

It's one of the biggest disputes in the market...

 

Folks who do fundamental analysis figure folks who do technical analysis might as well use tea leaves to make investing decisions. Folks who do technical analysis point out the fundamental analysts can be right about a company's value... and still lose huge amounts of money.

 

Then there's sentiment analysis: Die-hards in both camps call it too "touchy feely."

 

Me? I don't take sides.

 

I like to say we're "mercenaries" in my trading service, DailyWealth Trader. We go wherever the market will pay us. And when I'm looking for a good trade, I use all three types of analysis. They all have something to offer...(more)

 

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Actavis plc (NYSE: ACT)

Actavis plc, an integrated specialty pharmaceutical company, is engaged in the development, manufacture, marketing, sale, and distribution of pharmaceutical products in the Americas, Europe, the Middle East, Africa, Australia, and the Asia Pacific. It operates in three segments: Actavis Pharma, Actavis Specialty Brands, and Anda Distribution. The company also develops and out-licenses generic pharmaceutical products primarily in Europe through its third-party business; and provides products in women’s health, urology, gastroenterology, and dermatology therapeutic categories.
Take a look at the 1-year chart of Actavis (NYSE: ACT) below with added notations:

ACT started the year off with a bang by running from about $170/share up to $230. However, since that time the stock has traded mostly sideways, while creating a relatively clear level of resistance at that same $230 (blue) mark. That resistance level was also obviously a 52-week high resistance. Earlier this week, ACT broke to a new high, and the $230 level should now provide support on any pullbacks. A break below $230 could signal a false breakout.

The Tale of the Tape: ACT broke out to a new 52-week high. A long trade could be made near $230 with a stop placed below that level. A break back below $230 would negate the forecast for a continued move higher.
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Oil prices falling, but maybe not for long: Jefferies

Oil prices have fallen 15% over the past year, and they could slide further before stabilizing. That's good news for U.S. consumers who are paying an average of $3.41 for a gallon of regular gasoline -- the lowest price in six months, according to AAA.

"There's some downside still on prices, but I think we're near the bottom here," says Andrew Lebow, a senior VP for energy derivatives at Jefferies Bache. "Maybe another dollar or two on WTI and maybe another dollar or two on Brent.... We’re near the lows."

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