Wednesday, October 14, 2015

$BSQR BSquare IoT Software Stock, Bullish ABC Chart Pattern

BSQR – BSquare is a stock I’ve been monitoring since May when it popped up in my above average volume scans. BSQR is an IoT software play that is part of GE – General Electric’s ‘Predix’, a cloud purpose-built for industrial data and analytics. Needless to say, this could be a true ‘Game Changer’ for a small company like BSQR. The market is certainly starting to take note. The volume pattern in the weekly chart tells me all I need to know.

As I’ve stated numerous times in the past, my job as a trader is to base my buy decisions on the charts. They give early signals as to what to expect in the near future. Waiting for too many pieces of good news is often a bad idea. The more confirmation you need in order to pull the trigger, the lower the price appreciation potential after buying into a stock. (more)

Market Minute: Volatility $VIX indexes decline into the "calmer" zone

Following the September 9, 2015 Market Minute titled "Volatility drops ahead of Q4", the main U.S. volatility indexes have all dropped back to their "calmer" zones as the favourable 4th quarter starts to unfold.
After a short-term upward bounce in August and September, the VIX, VXD and the VXN have all declined back into a favourable range.

The S&P 500's VIX has dropped below 22, the Dow's VXD is well under the critical 20 mark and NASDAQ's volatility index (VXN), is now around 19, four points below the key 23 line.

Bottom line: Lower volatility levels are favourable for the U.S. equity indexes as it suggests higher levels are coming for the S&P 500, Dow and NASDAQ in the 4th quarter.

We expect the S&P 500 to reach 2120 to 2130, 17,750 to 18,000 for the Dow and 5,200 for NASDAQ by year-end.

Yelp Inc (NYSE: $YELP)

Yelp Inc. operates a platform that connects people with local businesses in the United States. Its platform covers various local business categories, including restaurants, shopping, beauty and fitness, arts, entertainment and events, home and local services, health, nightlife, travel and hotel, auto, and others categories. The company provides local advertising services, including free and paid business listing services to businesses of various sizes, as well as enable businesses to deliver targeted search advertising to large local audiences through its Website and mobile app.
Take a look at the 1-year chart of Yelp (NYSE: YELP) below with the added notations:
YELP retests $25
YELP has been consistently declining over the course of the past year. Over the most recent 3 months the $35 price level (blue) has become very important to the stock. Not only was $25 a key support back in August, but that level has also been hit as resistance a couple of times once he stock fell below it.

The Tale of the Tape: YELP has a key level at $25. A trader could enter a long position on a break above $25 with a stop placed under the level. However, if traders are bearish on the stock, a short trade could be made instead at the $25 resistance.