Signals of the Day – Sunday – April 2nd

Happy Sunday evening folks. I do apologize for getting this post up this late in the evening. Full disclosure, my wife and I got picked up our eight-week-old Golden Retriever this weekend and I have had my hand’s full, to say the least. But, having picked her up made me slow down and take a moment to reflect on why we do the things we do. We all work hard to enjoy our lives to the fullest and provide for our loved ones. And for us at Nirvana, that means bringing the best trading tools to the market to help empower our customers to succeed. It was a neat full circle idea that ran through my head as a sat down to prep for the week. Worth a share.

Anyways, market wise it should be a productive week. With Q1 coming to a close last week, we look forward to all that Q2 will have to offer. The week will kick off with the MarkitManufacturing PMI (53.5 expected); ISM manufacturing PMI (57.2 expected); Construction Spending (+1% expected); Auto Sales (17.3 million expected).  Let’s dive into the signals.

MVX-15

Southern could be ready for a reversion move back into the low $50’s.

SO spent the back half of last month pulling back and we start the new quarter testing support at the 50 SMA. It is very oversold on the RSI and the Bollinger Bands which puts it in a perfect spot to begin a reversal. Volume is also on the rise. If this reversion move kicks in, we could see it back up in the $51 zone before long.

The strategy that fired this signal is one of our more advanced strategies, MVX-15. Essentially, MVX is built to only find reversion moves. It has several of our artificial intelligence systems scouring for reversion moves while also avoiding stocks with extreme volatility, thereby reducing your risk. It’s really a fantastic strategy, and no BS, it’s one of my top five favorite strategies. If you’re interested in learning more, feel free to peruse the PDF here.

Next up, Morgan Stanley.

WT3 Short Term

WaveTrader is looking at MS to continue what it started last month and decline further in the near term future.

I know, I know, starting off the week with a sell signal might seem a little pessimistic, but hey, it’s a good signal. And honestly, unless you’re already in a long position on MS, you can make money going either direction. So, what do we know? First, we know that the decline that we saw late last quarter got a kick in the butt from the financial sector, as those were the first to sustain large losses. Also, MS fell all the way to support at $40 before rebounding but has just recently run smack-dab into resistance at $43.50, which it failed to break and in fact, retreated -1.36% after the failed test. It also has created one heck of a good looking lower high, which is crucial for good short position entries. If MS decides to follows the bears to start the month and the quarter, look for it to decline back down to the $41-$40 zone before hitting the breaks.

The strategy responsible for MS’s signal is WT3 Short Term which can be found in WaveTrader 3. WT3 was designed to find the best higher low and lower high pivots while they are forming so that we can get into the most reliable positions before they have begun. And I think we can all agree, being able to identify a higher low or a lower high before we see the right sid of the chart would be amazing. That what WT3 does. But, WT3 also controls risk amazingly well. WT places stop orders just below or above the turn, so if it has identified and incorrect pivot, you and your account won’t get blown up. If you’re interested and would like to peruse some literature you may do so here, or check out WT3 on the web here.

Last, but not least, Target.

Volume Power

Volume Power is looking to add to TGT’s gains from last week with a new bullish signal.

We called TGT out last week as a potential reversal candidate and it has followed through thus far. But, now we have a brand new signal firing on TGT, this time a Volume Power signal. Volume Power is part of out Volume Systems 2.0 plug-in and it specifically looks for stocks that are in breakout or reversion territory and that are also seeing increasing amounts of volume. So, basically, stocks that are poised to move right here, right now. Beautiful. We can see that volume is picking up at the moment but is not coming in huge amounts so the main move hasn’t passed us yet. It is also still oversold and still looks like a great potential reversion move. It will test a bit of resistance here at $55.65. If that level is not broken, look elsewhere, but if resistance falls, look for a push into the $57-$58 zone. If you’d like to know more about Volume Systems 2, check out its PDF.

That’s all for tonight. Best of luck in Q2 and have a great start to your week.

“My favorite things in life don’t cost any money. It’s really clear that the most precious resource we all have is time.” – Steve Jobs

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