USANA Health Sciences Positive Divergence On Large Players Volume

USANA Health Sciences’ stock has formed a positive divergence on large players volume. The price action has faded over the last couple of weeks into what could be a bullish flag channel. I bought some USANA Health Sciences in my personal trading account this morning.

The 3 month change in institutional ownership is +8.02% which suggests institutional traders are accumulating this stock.

Creative Planning increased its stake in USANA Health Sciences by a whopping 528% in Q2. Victory Capital increased its stake in USANA by 124.7% in Q1. Eqis Capital acquired a new position in USANA in the Q2 worth $210,000. Nine Chapters Capital acquired a new position in USANA in Q1 worth $207,000. KCG Holdings Inc. acquired a new position in USANA in Q1 worth $248,000. Institutional investors and hedge funds own 46.3% of the company’s stock.

On August 18, 2017, USANA announced that it would expand in four European countries beginning mid-year 2018. These four new markets constitute of Romania, Germany, Italy, and Spain.

USANA Health Sciences was recently honored by inclusion in Utah Business Magazine’s Fast 50 list. This year marks the 10th consecutive time the company has made the list of fastest growing companies in Utah. USANA finished ranked number 49 on the list.

Continue reading “USANA Health Sciences Positive Divergence On Large Players Volume”

S&P 500 Watch Out For Headfake Going Into End of September!

The S&P 500 did a breakout today but I’m thinking it will turn into a headfake as the market goes down the week of September 25 – 29th. Be careful buying the S&P 500 because it did a breakout today. I’m thinking we get a sideways chop out for the rest of the week and then next week we get a sell off.

S&P 500 chart setting up for possible headfake.

The main reason I think this will happen is that September is the worst month of the year for the stock market. Specifically, it’s the last week or so in September that gives the month its bad reputation. But it’s more than seasonality.

Notice the big negative divergence on the CMF. We should have stronger buying pressure with the S&P 500 doing a breakout and hitting a record high. That’s really pathetic buying pressure as evidenced by the CMF which means we have an elevated risk of a headfake move.

S&P 100 Index Put/Call Ratio

The S&P 100 Index looks like a possible exhaustion gap up. Notice how the Equity Put/Call ratio chart looks like a coiled spring ready to pop to the upside:

Equity Put Call Ratio chart

If the gap up on the S&P 500 is an exhaustion gap, then tomorrow we would expect the gap to fill. If it’s a more bullish breakaway gap up, then tomorrow could gap up again as the S&P 500 hits new all-time highs.

What is the catalyst for driving the market higher? President Trump’s corporate tax cut may not happen as Mnuchin admits here. Here is a stock trading lesson on catalysts for your review.

The market exists to screw the greatest number of amateur traders at any given time. The S&P 500 hitting all-time highs during the weakest month of the year smells foul. What a great way for professional traders to really screw a lot of amateur traders! Buyer beware.

Facebook Stock Swing Long On Rising Twiggs Money Flow

Facebook stock looks like a compelling swing long trade on a rising Twiggs Money Flow. Large players volume is also rising.

Facebook will likely spend over a billion dollars on content production. The company has recently launched ‘Watch’ a new subsection on its website for viewing videos. Facebook is moving to capitalize on shifting ad dollars as ad dollars shift away from TV. For the first time, ad spending on digital surpassed TV ad spending last year. You can see Facebook Watch in action here.

Facebook Stock

Facebook stock swing long entry on rising Twiggs Money Flow and large players volume.

The chart of Facebook shows a good setup pattern on rising Twiggs Money Flow and large players volume. Recently a Pocket Pivot signal was observed. Prices have been consolidating lately setting up a momentum squeeze play:

Momentum squeeze in Facebook stock.

Facebook stock has a resistance zone just above the current price starting at $173.52. Right above this resistance zone may be a good entry point. There is a support zone below the current price at $171.03, a stop order could be placed below this zone.

Dow Jones Transportation Chart Fires Buy Signal On AROON Spike Up

The Dow Jones Transportation Index fired off a buy signal on the AROON indicator today. The chart shows a breakaway gap up candlestick with a shaven top and bottom.

D L Carlson Investment Group increased its stake in shares of the iShares Dow Jones Transportation Average (IYT) by 19.9% in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The Ledger Gazette also reports other large investors buying up Dow Transports in the second quarter when it dipped.

Dow Jones Transportation

Dow Jones Transports AROON spike up.

September is the worst month of the year for the stock market and the last week is often bad. I’m thinking we could be setting up for a headfake move to the upside this week, but then a sharp move down the week of September 25th – 29th:

Dow Jones Transports Index prediction chart.

Amazon Stock Twiggs Money Flow Breaks Positive

The Twiggs Money Flow on Amazon stock has broken above the zero line and has gone positive for the first time since August 7, 2017.

Amazon just rolled out Amazon Fresh in my area of Fresno, California. I signed up for the 14-day trial for Amazon Fresh and immediately canceled it because of the poor delivery times. On Saturday, I ordered 4 peaches, and a bag of shredded mild cheddar cheese. Amazon Fresh said they could not deliver it until Tuesday, LOL. I cancelled and told them I’ll just go to the grocery store myself and pick up these items in like a hour. If Amazon Fresh is going to be successful, they have to get delivery times down to same-day and at most, one day later. If they can’t do that they might as well close down their Amazon Fresh website because only the elderly and disabled are going to be willing to wait 3 or more days for their groceries to be delivered.

I think Amazon is poorly executing on their Amazon Fresh division. Amazon Fresh wasted about an hour of my time when you include the time it took me to order and then to cancel my order as well as my Amazon Fresh trial. I won’t try Amazon Fresh again for a long time. Maybe I’ll never try it again. That’s the cold hard reality of retail: first impressions are everything. Amazon has blown it in their roll out of Amazon Fresh by promising too much and then not delivering. Still, if any company can turn this around it’s Amazon.

MKM Partners recently gave Amazon a target price of $3,330 which you can read about here.

I’ve been trading in and out of Amazon stock for about a month now and it’s been a great stock to swing trade.

Amazon Stock

Amazon stock looks strong.

That’s a good basing pattern and perhaps even an inverted Head and Shoulders pattern. The 50 day moving average (blue line) is setting up a possible breakout play. Here is a swing trading lesson on breakout chart patterns.

In addition to the Twiggs Money Flow going positive, the Effective Volume study shows large players volume is still in an uptrend.

Prices have been consolidating lately forming a momentum squeeze on the chart:

stocks-to-watch amzn chart 1100x823 - Amazon Stock Twiggs Money Flow Breaks Positive

The TSI is holding its buy signal cross from August 30, 2017.

There is very little resistance above the current price. There is a support zone below the current price at $972.24, a stop order could be placed below this zone.

Rand Paul Fund Hurricane Disaster Relief With Foreign Aid Money

Senator Rand Paul makes a lot of sense when he calls on his colleagues to use foreign aid money to fund our own disaster relief from Hurricanes Harvey and Irma.

Senator Rand Paul said:

“My amendment, the ‘America First’ amendment, would take the money from money that we were going to send to foreign countries. We send billions and billions of dollars to countries who hate us. We send billions and billions of dollars to countries who burn our flag. I think it’s a very simple choice that when we’re looking at those in need in our country, we quit sending money to other countries.”

Corrupt Congress always puts Americans’ interests last. Few senators agree with Rand Paul’s common-sense logic. Republican Senate Majority Leader Mitch McConnell made a motion last week to kill Rand Paul’s reasonable proposal and that motion passed 87-10 thanks to both Democrats and Republicans in the Senate.

There’s only one reason why Republicans and Democrats are not supporting Rand Paul’s proposal: corruption. Special interest groups that got these Democrats and Republicans elected do not want a reduction in foreign aid spending and so it’s not going to happen even though it’s the right thing to do.

Here is Rand Paul in his own words explaining his brilliant proposal:

Source: Rand Paul YouTube

PowerShares DB Crude Oil Double Short Play As Summer Ends

Large players volume is surging higher in the PowerShares DB Crude Oil Double Short ETN DTO. This is the seasonally weak time of the year for oil as the summer driving season comes to an end and demand for oil drops. Short sellers often target oil at this time of year.

PowerShares DB Crude Oil Double Short ETN

PowerShares DB Crude Oil Double Short ETN

The surge in large players volume and the positive Twiggs Money Flow suggests the seasonal short oil trade is on for 2017. Playing the seasonally weak time of year by shorting oil is a bit more risky this year due to the increased probability that hurricanes will disrupt oil production in the Gulf of Mexico.