Trading Signals of the Day – 3.9.17

The market hit the brakes on the slight pullback we’ve seen this week, with all three of the major indexes picking up small gains. The S&P 500 snagged .08%, the Dow tacked on .01%, and the Nasdaq netted a .02% gain. Crude oil and gold continued their slides, though, with the former losing 1.31% and the later losing .70%. The prevailing market mode is still very bullish, so we are using our trading strategies to locate new bullish signals.

 OmniTrader Breakout (Stocks)

Celgene has moved through resistance and has put itself in a great position to breakout.

What was once a really nice double bottom reversal has turned into a fantastic breakout opportunity. CELG snagged a healthy 1.71% gain on the day after moving through resistance at $125.00. Volume is on the rise and all of the major indicators are squarely in bullish territory. If this breakout move takes hold, we could see CELG testing resistance from summer of 2015 at $128.00 in a hurry.

Breakout opportunities, like the one on CELG, occur as a stock suddenly moves away from its normal price pattern. These setups usually happen as a stock’s price moves through its recent highs like CELG has done here. This type of setup can yield large returns because this price pattern tends to set off a buying frenzy that can lead to long, extended moves.

We have built tons of great strategies throughout the years, but some of our oldest strategies still find great opportunities on the regular. That’s the case here with this signal being fired by the OmniTrader Breakout (Stocks) Strategy. OmniTrader generates buy and sell signals based on the “personality” of each security in a given list. We call this powerful technique the Adaptive Reasoning Model (ARM).  OmniTrader uses the ARM to test all of its default systems (120 of them) on every stock on any list to find the best setups and then OT applies the appropriate methods to generate new signals.

Next up, Berkshire Hathaway.

MVX-15

A new higher low is available on BRK.B.

The Oracle of Omaha’s company has been soaring as of late, rising from the $150’s in January, all the way to nearly $180 earlier this month. BRK.B has pulled back a bit though and is now offering up a new higher low opportunity. Volume has been relatively steady and heavy, but if another volume surge happens, that could trigger the next wave of buying. If resistance is broken at $177, we could see BRK.B in the $180’s very quickly.

One of our more advanced strategies, MVX-15, fired off this signal. MVX-15 works by looking at volatility in two different ways by using the MVX Signal Filter. It improves RTM strategy performance by making sure that there is enough market movement to capture quick profits. The filter also measures the movement of the VIX Index, which is widely known as the “Fear Index”. The VIX is a good indicator of market uncertainty which usually leads to volatility.  When MVX-15 finds excessive volatility, the filter will kill all false signals. This helps the performance of MVX-15, and it increases the profitability and accuracy of all Reversion to Mean Strategies. To learn more check out the PDF.

To round out the evening, we’ve got a Guppy on the line.

Guppy CBL Classic

BMY is poised to make a break for the 200 SMA at $60.

BMY makes the list tonight via the GMMA 2.0 plug-in. BMY has moved through resistance at $57.20 and is heading north towards the 200 SMA at $60. This Guppy signal is a riff off of the work of Daryl Guppy and the Guppy Method. The GMMA concept is based on 12 different Moving Averages. It is the composite picture of these averages that provides a powerful view of the trend in any given stock.  The expansion and contraction of the lines indicate what stage trend is in, and also how stable the trend is. The Guppy Multiple Moving Average

The Guppy Multiple Moving Average indicator understands the behavior of traders vs. investors. The GMMA structure captures the different behaviors in the market and the way the behavior repeats. The GMMA analysis rests on the relationships between each of the Moving Averages and also between individual groups. Compression represents agreement while expansion shows disagreement. When the long-term group is widely separated it displays strong investor commitment to the current trend. When the two groups of averages are consistently separated it shows trend consistency because traders are prepared to defend their positions and not to prices retreat too far before they become buyers again. The relationship in each group of averages and the relationships between the groups of people provides the main analysis of the GMMA.

Compression represents agreement while expansion shows disagreement. When the long-term group is widely separated it displays strong investor commitment to the current trend. When the two groups of averages are consistently separated it shows trend consistency because traders are prepared to defend their positions and not to prices retreat too far before they become buyers again. The relationship in each group of averages and the relationships between the groups of people provides the main analysis of the GMMA.

That’s it for tonight, have a wonderful evening and happy trading!

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.