Showing posts from March, 2019

March' Longs and Shorts: CREE, CTSH, UBNT, X

1. Cree Inc. CREE, $55.27

Technical analysis is a great weapon for traders when charts are well developed. CREE, as you know, one of my favorite stocks since mid-2018, is likely in a technical correction. The 2-year uptrend channel in its weekly chart, show the stock touching the upper line, and beginning a pullback probably towards the "value zone" (black lines). MACD and Stochastic (not shown) confirm some exhaustion of the rally. And also the Elder's Impulse System changes from green to yellow in the two last candles indicate a pause in the bullish phase. Friday 22th, during the market sell-off, I closed my position and wait for a further long entry, because the stock maintains its good fundamentals, and this good company has road for growth in the long-term.

2. Cognizant Technology Corp. CTSH, $71.09

Since January I'm following this stock in my watchlist, due to its low valuation with nice numbers in growth and earnings in 2018. After a great initial month and …

The Ichimoku indicator: Basics and Strategy

Among the many indicators used for technical analysis, one of my favorites for its versatility, since it brings together 'all in one': levels of support and resistance, trend of movement (trend direction), acceleration (momentum) of the price (that´s volatility), and trading signals (bull or bear), is the 'Cloud of Ichimoku', or simply Ichimoku, dating from 1969, today has become one of the most used by traders for its effectiveness. Its development and operation are detailed in the main trading books, and in many internet sites dedicated to teaching, which is not the intention of this blog, but rather to mention it and use its power to make good trades. I suggest, fervently, study the theory of this indicator to better understand the philosophy of Goichi Hosoda, its creator. One of the best online explanation of the Ichimoku Clouds is in the StockCharts web, it explains calculations, signals and strategies. Briefly, the Ichimoku consists of the use of several lines:

My Stock Watchlist for March 2019

Market Pulse.
Ending February, we have a very overbought market and a bullish sentiment in all Wall Street levels, professional and particular investors. Take note this amazing numbers for this 2019:

- The Dow Jones finished the month with an 11% YTD gain, best two-month start since 1987.
- The SP500 SPX closes February breaking its SMA10 average in its monthly chart, a crucial data watch for smart investors, signaling buy conditions, after three months. Since December lows, the raise is an incredible 19%.
- The Nasdaq COMP with its best week rally (almost 10 weeks) since 1999.
- Also, the VIX returning to "calm" levels in 13.78, signaling more greed in investors.

In news, investors were analyzing recent 4Q GDP, which shows economy growth at its fastest clip since 2015: 2.6% annual rate, more than 2.2% prediction, but short than recent 3.4% and 4.2%, both 3Q and 2Q GDP. After this read, the 10-year Treasury Bond TNX increases to 2.72%, in its steepest climb since early …