Liberty Tax Swing Long Seasonal Setup

Time to look at publicly traded tax preparation stocks ahead of the end-of-year tax season. A stock that looks like a compelling swing long setup is Liberty tax.

Founded in 1997, Liberty Tax, Inc. is the parent company of Liberty Tax Service. In the U.S. and Canada, last year, Liberty Tax prepared over two million individual income tax returns in more than 4,000 offices and online.

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Large Players Volume Surging Higher In Amazon Stock

The large players volume is surging higher in Amazon stock making for a great swing long entry which is why I am long Amazon in my personal trading account.

UPDATE 9/20/17: Etrade hit me with a margin-call on my position and I had to unwind the trade for a loss. They reduced my margin on the stock from 25% to 45%. That was a massive margin call. That’s the problem with margin. Your brokerage firm can influence your trading decisions via a margin call.

Amazon Stock Chart

Amazon stock chart

That’s a beautiful positive divergence between the large players volume and the price of Amazon stock. Clearly large players are accumulating Amazon when it pulls back. The Twiggs Money Flow supports the thesis that Amazon stock is under accumulation.

There is a resistance zone just above the current price starting at $979.18. Right above this resistance zone may be a good entry point. There is a support zone below the current price at $973.6, a stop order could be placed below this zone. Remember to review the lesson on stop orders here.

November and December are seasonally very strong months of the year for Amazon. This is the market prediction for Amazon stock:

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Watch Out For Headfake In Financials XLF

XLF is back testing its resistance level as we had into trading next week. Looking at the chart, everything looks great with the CMF going positive and giving a buy signal and the PPO rising. The CMF and PPO suggest that a break above resistance is likely, but not so fast.

xlf chart 9 17 17 1100x813 - Watch Out For Headfake In Financials XLF

Often the last week in September is a fairly bad week of trading giving September the classification as “the worst month of the year for the stock market”.

If seasonality plays out this year as expected, XLF could be a wicked headfake. We could have a breakout above $24.81 which would pull in lots of breakout momentum traders. XLF could then reverse and go back to test $24.25 support. Below is this possible prediction path plotted on XLF.

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Semiconductors May Start Putting In A Top

Semiconductors could start putting in a top over the next week. For the week ending September 22, 2017, we could see sideways action next week to about 1% – 2% higher by the end of the week. After that, we could see the seasonal month of September (weakest month of the year for stocks) kick in and take SOXX back down to its long term uptrend line near $151.

business soxx chart 9 17 17 1100x646 - Semiconductors May Start Putting In A Top

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Biotech Prediction On Track For Pull Back At End of September

Biotech stocks are following the market prediction perfectly. It looks like next week we will continue the chop out sideways action and then we will get the pullback at the end of September (week ending September 29).

business ibb chart 9 17 17 1100x813 - Biotech Prediction On Track For Pull Back At End of September

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Russell 2000 Stronger But Pullback Coming

The Russell 2000 had a stronger upward move last week than the predicted path from last Saturday. I predicted the upward move but did not expect the previous $140.89 resistance level to be broke. Here is an updated prediction path for the Russell 2000.

business iwm 9 17 17 1100x813 - Russell 2000 Stronger But Pullback Coming

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