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- SignalWatch – 4.12.17
SignalWatch – 4.12.17
April 12th
Howdy folks. The indexes slid once again today with the S&P finishing -.38%, the Dow -.35% and the Nasdaq -.52%. Crude also slid, losing .90% while gold finished higher, picking up .78%. Gold continues to see more investors coming into play as the Syria-Russia-U.S. situation continues to darken. Russia warned the U.S. today not to strike back at the Syrian regime no matter what today, while Secretary Tillerson publicly informed Putin that the U.S.-Russia relations are at the lowest point since the Cold War. Those are both huge statements. If things hit the fan and Assad tests the chemical warfare waters once again, things could get really nasty, really fast.
As far as signals go, let’s dive in and take a look at tonight’s Big Three.
A new potential reversion move could be ready to go on ABBV.
ABBV has been pulling back for almost a month after a strong run from December to early March. The 50 period moving average has recently moved through the 200 moving average, which is a solid bullish indicator. It is also oversold on both the RSI and Bollinger Band indicators, and it is testing support at $64. All of these factors combined to make this setup look very appetizing.
ABBV’s signal was fired by the MS-16 strategy. The MS-16 strategy uses two different momentum systems and filters based on a major trend direction. It also uses a scan that identifies the stocks that are outperforming the market but have made a significant pullback against the overarching trend. ABBV has met all of MS-16’s stringent rules and qualifications to generate tonight’s signal. If MS-16 gets this call right, we could see a push into the $66 zone before it reports its earnings later this month.
Next up, BIP.
BIP is on the verge of breaking out.
What a ride BIP has been on since December. Talk about a long, steady trend. Good glory this thing looks hot. Higher highs aplenty, all followed by amazing higher low opportunities. In the words of Luke Cage, “sweet Christmas.” Indeed. BIP is still rising after recently pivoting off of another higher low and is approaching resistance at $39.00. If it can muster enough strength, we may see it pop into a new all-time high territory.
The signal was fired by the WT Trending signal which is part of the WaveTrader 3 plug-in. WaveTrader looks to identify the new “waves” in the market before they occur, allowing you to get in position before the move begins. This strategy also uses what we call fractal wave theory. Fractal wave theory finds the most highly confirmed Wave Trading candidates throughout the market. What in tarnation is a fractal? Thanks for asking! A fractal is a repeating pattern that is self-similar across different scales. Using fractal wave theory allows us to find the “waves within waves”, which provides us with the advantage of the precision of smaller waves while benefiting from the stabilizing effect of the larger waves. For more info on WaveTrader, check out its own site at wavetrader.omnitrader.com.
The last signal of the day is on MO.
MO could be setting itself up for a new short position.
No, there is no typo or mistake in the chart above. Altria’s symbol really is MO. And speaking of MO, it has been moving lower steadily and has set itself up with a new lower high entry opportunity. One of the major fundamental issues that have been kicking MO in the pants is the simple decline in volumes of cigarette sales, more anti-smoking laws across the globe, and the cost of smokes. They have leaned heavily on their e-cigs for future business, but so far that strategy hasn’t paid off. If things continue, we may see MO head towards the $70 zone.
This signal was fired by one of my favorite strategies and plug-ins, the Darvas Classic Strategy from the Darvas Box plug-in. The Darvas Box is based on the work of Nicolas Darvas. Darvas was not a pro trader, in fact, he was a pro dancer, but he was full of gumption and was able to become a self-made millionaire through his unique investment approach, known in popular trading circles as the Darvas Box. Signals are fired in the Darvas Box when stocks close above former highs, or in this below former lows. It’s a method that has been around for a long time, but it’s time-tested and it works.
That’s it for this evening. Have a wonderful night and we’ll see you back tomorrow!
Also, don’t forget to check out SqueezeTrader. There is only one day left to score your copy at a huge discount! Check it out here.
The products and demonstrations listed on this website are not recommendations to buy or sell, but rather guidelines to interpreting their respective analysis methods. This information should only be used by investors who are aware of the risks inherent in trading. Nirvana Systems shall have no liability for any investment decisions based on the use of their software, any trading strategies or any information provided through other services such as seminars, webinars, or content included in the SignalWatch website.
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.