Yes, technical trade signals always provide the best BUY or SELL trade signals in any market.
What matters is to remember that the technical DNA of each stock moves, wiggles and shakes to it's own factual reality. This is something that the talking heads and cable news "entertainment" shows can not accept. As it show these groups for being the gossip groups, telling you of why you got trapped in a train wreck…..remember 2007 or 1987 ?
Well in order to try and shine some honest and real confirmations of stocks that today that have kicked down the door to high price levels, and dramatic new highs over the next 90 days.
Yes each of the following stocks is kicking out "ear shattering" signals that they will trade against the over all lack of energy for SP500 & Dow. So lets look at what are the strongest opportunities for near term upside and will out perform the stock indexes even on remaining upside in 2014.
There as some surprises….remember this based on waiting for quality technical buy signals.
Also I will offer how to spot bad behavior going forward. Also again we are telling people do not buy options on any stocks.
You buy the physical stock….pay for it. Then if volatility creates concern you sell "calls" against you owned shares !
Remember…if do not book your profit and put it in the bank….you never had a real profit.
Dollar General (DG) NYSE
Has broken the Jan, 2014 high of 62.87 which was the last remaining resistance from the rally that started at the end of 2013 at 42.33. So now after a $20 per share rally and correction in January of 2014 from 62.87…..made a compression bottom in the low 53 level. Today "DG" has broken out on what is a modified "tea cup" formation over the last 8 months.
Now did you hear what I just said….you had to wait 8 months to get this signal !
The first buy signal came from the July 2014 low at 54.59 and then a series of small steps of higher bottoms on the show term charts. Dollar General is up 152% from the Nov 13, 2009 low.
But what is more important is that this new major BUY breakout signals comes as a confirmation of the 2013 breakout of the $54.50 level from the mid 2012 correction high. Which was again a "tea cup" formation on the weekly chart.
So a BUY today at $63 per share….the upside is another $20 per share. This could happen in a very fast time frame. The near term resistance is $75 per share, after that level then $82 is realistic. $10 in the time frame between now and Christmas of 2014.
The major support under the stock is a wide $60 to $55 per share. Actually there should not be any major negative volatility swings after todays close. $56.50 to 55.50 is the meat of that support. But all duration charts are sending this stock higher. Hedge if a daily trade below $55
Google ( GOOGL ) NASDAQ
Google is about to tear up market….all that is remaining for GOOGLE to do is close on a daily basis above the June 23, 2014 at 595.98 on the weekly chart. Day high of 2014 was 610 on a double top in front of the early year correction that created the "W" bottom at 518 in May 2014.
That was the most recent high from what was a near term building of a long term "tea cup" formation. This has been the best and most reliable technical formation for buying GOOGLE. This formation has happened over 7 times in the space in the last 5 years.
GOOGLE stock is up from August of 2009 to present ( 2014)……+150%
So where can we go from a confirmation of a long term breakout ?
I am looking at an upside of $657 in the near term or better into Christmas. But again if there is a real rush to quality by pension, mutual funds or the public in general….then a $714 in the next 12 months. It would not surprise me to see a large rush towards $700 and then volatility swings in front to this years end of trading.
APPLE ( APPL ) NASDAQ
Now early this year I told everyone publicly that there could be major stock split in APPLE's shares and that I was looking for an $850 price by the end of 2014.
Well now that we have had an amazon 7 to 1 split…..today we are trading at $99.20.
That is equal to a pre split price of 694.40 per share, just below the $700 per share ( pre split) price of 2012. So now Apple's stock is in process of a massive long term breakout. The cross over of the $100 per share price now, will produce a new long term historical high.
To reach the original price target of $850 (pre split) share target….we would now need to see only a rally that would go to paltry $121.42 per share !!
Which is not even close to the new expanding price targets for APPLE stock.
Now let me warn you that there will be price volatility swings in Apple and that will create the highest bottom ever seen in APPLE stock. So this will most likely look like a "U" shaped bottom after the initial price breakout. But if the typical trading patterns hold true to previous history.
Then a price target of $125 between now an Christmas is very realistic. or what would have been a pre split price of $875 share price. Longer term Apple will have an even stronger up side. With various resistance levels and APPLE haters trying once again fight the "tape".
It is not unreasonable to look at a $142 to $146 share price in 2015.
TESLA Motors ( TESLA ) NASDAQ
Ok….here is another stock that is staging a major technical rally and kicking off major buy signals. Regardless of how you "feel" about TESLA the stock is stagger a major technical reversal that started March of 2014 when the stock corrected back from a then high of 254.84 and reached a low of $178.59 in early May of 2014. Now again the technical formation that TESLA stock has built is DOLLAR GENERAL's price action a classic "Tea Cup" formation with the "cup" built in March to End of June and the "handle"from July to August 11,2014.
The price action technical that was similar to TESLA's price action from 2013 into early 2014 on the long term charts. Now what this means is that the remaining near term upside for TESLA is still very strong.
I am looking at TESLA as trading as high as $325 to $330 over the next 12 months. I the near term and again specifically towards year end of pushing through the $300 per share price.
SO with today's price of $261…..as I write. That means a realistic upside of about $40 per share. But do not buy options. Buy the stock and own in and hold it. If volatility swings develop you can "Sell" CALL options to protect your profits.
The SP500 and DOW will see a return to favor with investors and portfolio managers over the next few weeks. But there will be volatility swings in the "index" groups. The stock I am suggesting here and now have a pattern that appears to have built patterns that have proven to be reliable paths, which is how these stocks got to where they are now….and have out performed the SP 500, DOW and NASDAQ for all of 2014.
Remember TRADE or DIE.