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- Signals of the Day – 4.4.17
Signals of the Day – 4.4.17
Signals of the Day
Good afternoon folks. It was a calm day in the market as all three of the major indexes closes with small gains for the day. The Dow clocked in with a gain of +.19%, the Nasdaq +.15% and the S&P 500 +.05%. Tomorrow should be more interesting as far as movement is concerned because we will not only receive the weekly oil numbers but also the FOMC Minutes from their previous meeting. So stay tuned for those releases as both will trigger some movement around the market.
Without further ado, let’s go ahead and get into today’s signals.
The Guppy Method is calling for a breakout move on CI.
Today we are going to kick off by taking a look at a new Guppy signal on Cigna (CI). As we can see, like much of the market, it has been in a predominantly bullish mood so far this year and just recently began to rebound after testing the trendline pivot point and support. Since CI made its pivot, it has moved through the 50 SMA and is now testing resistance at $150.75. It is still oversold on the RSI and the MACD indicator bullish crossover is about to occur giving us even more, confirmation that this move could be primed and ready to run up to $154ish.
This signal is brought to you by the Guppy CBL Classic Strategy, which in turn is brought to you by the GMMA 2.0 plug-in. The plug-in is based on the work of Daryl Guppy and has been one of our more popular plug-ins for years. What it essentially does is examine several of any stock’s moving averages and then makes a composite average out of all of those that it examined. It is also designed to show the strength of the trend. The GMMA concept is based on 12 different Moving Averages. Also, the GMMA’s Guppy Multiple Moving Average indicator understands the behavior of traders vs. investors. This behavior is not related to the price behavior, but it is derived from it. What the strategy is finding now on CI is that most traders and investors are in sync with CI, therefore a bullish signal has been generated. Pretty neat. There is a ton of analysis that goes into the GMMA, so if you’d like to know more, check this out.
Next up, Cardinal Health.
CAH has been in a solid trend and appears to be forming a new higher low.
CAH has been trending higher for months with each pullback resulting in further gains. This is one smooth moving trend, which is by far the easiest thing to trade. It is now forming a new higher low pivot along support at $80.40, which is also along its trend line and the 50 SMA. It is also in the oversold level on the RSI indicator, which makes this a very attractive spot for a price improved entry. If CAH treats us all to an additional bullish move, it could be back in the $80’s before long.
The last signal of the day has United Continental in the spotlight.
UAL could be offering up a new solid short signal on UAL. Watch for the crude report to get UAL and the other airlines moving tomorrow.
So the final signal of the day is a sell signal, and it is on UAL. UAL posted a loss over 2% today after failing its test of the 50 SMA yesterday. It has now formed a lower high and is overbought, making it a picture perfect short entry. If things continue to go south for UAL, look for a push down to support at $65.
Keep in mind that the airlines do move in lockstep with the crude industry for the most part. If the crude report favors the oil industry, look for the airlines to decline and vice-versa. The strategy responsible for this signal is the GT Momentum strategy which has made a few appearances here on SignalWatch. The strategy is part of out GroupTrader 2.0 plug-in. The strategy identifies industry groups that are highly correlated and then finds the laggard of the group for the freshest entries. So keep an eye out on the entire airlines industry group tomorrow, especially UAL.
That’s all for tonight. Good afternoon, good evening and goodnight.
“Whatever you are, be a good one.” – Abraham Lincoln
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About the Author Ryan Belknap
Ryan has been with Nirvana since 2012 and has been manning the trading desk since Day 1. He was one of the founding members of Nirvana's Trading Lab and also TraderSource.com along with Ryan Olson and Russell Casperson. Ryan logged more than 3,500 hours trading and educating live in the Lab. He is also the lead author of SignalWatch.com. Ryan is a seasoned educator and has conducted numerous educational webinars and is an OmniTrader University instructor. Ryan prefers swing trading and position trading. Outside of the market, Ryan has passions for the outdoors, baseball, exercise, coffee, pop-culture and spending time with his family.