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- SignalWatch – 5.16.17
SignalWatch – 5.16.17
May 16th
Good afternoon folks and welcome back to SignalWatch. We’re glad to see you back. The broad markets closed mixed this afternoon with the Dow and the S&P closing slightly down while the Nasdaq closed slightly in the green as the news cycle was dominated once again by questions surrounding the Trump Administration. This is important to the market because the more doubt that is cast in President Trump’s way, the more skeptical investors will be for all of his business friendly legislation to see the light of day. Particularly the hugely anticipated corporate tax cuts. We’ll see how things play out in the coming days, but truth be told, we’ve been on this roller coaster for awhile now so it’s starting to feel like this wacky reality is the new status quo. If that’s the case, all this hype may already be priced into the market. Time will tell.
As for this evening’s signals, we have two new buy signals complimented by a new sell signal. Let’s get this party started with a new buy signal on American Express.
GroupTrader 3 is looking for a bounce on AXP.
AXP has been on a roll since late October but has recently undergone a new pullback which is now developing into a solid higher low. It is oversold on both the Bollinger Band and the RSI indicator’s and it is testing the 50 SMA, which is acting as resistance. If it can pop through the 50, we could see it back on its way into the low $80’s.
This signal was fired off by GroupTrader 3.0. GroupTrader is all about finding the industry groups that are poised to outpace that market and then find the best stock within the outperforming industry groups. GT3 examines every industry groups and finds those that have highly correlated stocks and then it isolates the stocks that are slightly trailing the group but have a very high level of confirmation. Group rotation is a very popular trading method and has been used the world over for decades. GT3 makes trading group rotations super easy, because it automates the entire process. If you’d like to see all of the ins and outs, check out its PDF here.
Next up is a short signal on BMY.
GroupTrader is looking a price drop coming on BMY.
BMY took a dip today and finished with a loss of 1.29%. It broke through a trendline in the process that was also acting as support at $55.00. Not only that, it has also moved through the 50 SMA, which is a major piece of bearish confirmation. Volume is on the rise and we can also see that BMY is close to being overbought on the RSI, which is an ideal spot if you fancy jumping into short positions. If this signal has the call correct on BMY, we may see a drop into the $52-$53 zone before the move call it quits.
Like out signal on AXP, this one was also fired by the GroupTrader plug-in, but by a different strategy. In this case we are looking at the GT Volatility Breakout Strategy. This particular strategy works the exact same way as the one above except that is measuring for large spikes in volume and highs amounts of volatility. As we see, BMY fits the bill for a great breakout setup. For more info, take a peek here.
To round out the night, let’s take a look a new reversal signal on INTC.
TradeScope is looking for a new reversal move on INTC.
INTC has been in a decline for the entire month but it has now started to pivot higher after finding support at $35.50. It is also forming a new higher low in an extended trading range as well. INTC is oversold and is starting to see increased amounts of volume, both of which are reversal confirmation. If this move plays out, look for a move back into the $36.5-$37 zone.
TradeScope tells us the probability of a move given a specific conditions. It measures historical data, chart indicators, filters and systems and then crunches all of these data sets together and then tells you the overall probability of a move in any time-frame. Not too bad right? There is a ton of nitty-gritty pieces of info on how TS works, and if you’re interested in checking out its ins and outs, take a look at its PDF.
Have a wonderful evening and we will see you back tomorrow!
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.