Signals of the Day – 3.8.17

The indexes tumbled at the end of the day but closed mixed with the S&P dropped .23%, the Dow lost .33% and the Nasdaq closed with a slight gain of .06%. Crude fell to new three-month lows after an unsteady inventory report this morning. Gold and bonds also took a slide. Is this the beginning of the end of the Trump Rally? Things certainly feel overbought across the board, but until we see significant pullbacks begin, it’s premature to start calling for the bears.

Keeping all of this in mind, we are going to continue looking at bullish entry opportunities. That doesn’t mean we aren’t on the lookout for potential pullbacks, but we aren’t ready to jump the gun on this crazy rally. So, let’s check out our Signals of the Day.

MS-16 

MS-16 has identified a new higher low on MET.

Metlife has been singled out by our MS-16 strategy as a nice trending opportunity. MS-16 is looking for stocks that are outperforming the market but have also made pullbacks against their trends, offering up new entries into the dominant trend. And that is precisely what is happening with MET. Not only do we have a higher low, we also have a convergence level with the 50 SMA interacting with support at $53.25. The RSI indicator also shows us that MET is close to the oversold reading of 30.

If MET does take off, it could rally into the $56 zone relatively quickly. MS-16 is one of our newer Advanced Strategies and it has been a top performer. It is designed to identify excellent trends with low risks. From 2012-2016, it made steady gains with only tiny bits of drawdowns. If you’d like to learn more about MS-16, check out its PDF.

Darvas Classic 

A new higher low has presented itself on FDX.

One of our most popular plug-ins, Darvas Box, has identified a new entry opportunity on FDX.  We are looking for a new bullish pivot like the two previous ones we see in the current trend. If the bullish moves follows through, we could be looking at a move into the $197 zone in a hurry.

So, how does the Darvas Classic strategy work? It all starts with the man himself. Nicolas Darvas was not a stock market professional (he was actually a pro dancer), yet he was able to become a multi-millionaire through his unique trading approach, known to most as the Darvas Box.  By establishing a “box” around price, Darvas could not only determine optimum entry and exit points but also assess his risk.  And do so before entering the trade.

So, we went out and automated (because we love automation here) the Darvas Box process. Working within the Darvas Box method, we threw in a set of indicators, Trading Systems and Strategies, which are all valuable additions to OmniTrader.

The Darvas Box Classic Strategy implements the well-known Darvas Box approach to trading, while our Darvas Box Nirvana and Darvas Box Classic Support/Resistance Trading Strategies are variations on Darvas’ original theory.

While each of these Strategies is designed to find breakout opportunities in the short to medium-term time frames, each takes a little bit of a different approach to generating and confirming new trading signals. This gives traders the flexibility to apply the method most appropriate to your style of trading.

Last, but not least, we have an ARM5 RTM-17 signal on AT&T.

ARM5 RTM-17

A brand-new ARM5 RTM-17 signal has fired on T.

T has pulled back and formed a new higher low after testing the 50 SMA at $41.70. The signal was fired by ARM5 RTM-17, our newest strategy. ARM5 RTM-17 uses artificial intelligence to analyze the market and then uses that analysis to create new rules for trending in the current market. It then uses those rules to compare short term price movement to the longer trend, finding new trading opportunities.  ARM5 RTM-17 has identified such a move here on T. If this move follows through, we may see T push back into the $42.50-$43 zone quickly.

Before we call it a day, we wanted to let yall know that we are updating our YouTube library with all kinds of new videos. You’ll find videos on individual strategies as well as videos to help you fine tune your OmniTrader. Check it out now!

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable.