Bryan Leighton's Blog (35)

Almost everyone in the trading business is talking about an oversold market at this stage of the game. Stocks are now entering correction territory and there could still be more selling down the road. Generally, some of the best rallies come during a bear market and this makes many traders such as myself willing to take a shot at the long side when stocks are so low. Unfortunately, the stock bounces that we have seen lately have been met with heavy selling pressure. Often, traders will…

The NASDAQ 100 is surging today following the Democrats retaking the House. The reason for the rally? Just days ago, President Trump threatened to file anti-trust cases against the big tech companies and claim they were monopolies. Investors believe that the Democrats will neutralize that threat in the near-term. As tech surges higher, investors should be ready to pull the trigger on the short side when price hits $178.00. This is a major technical resistance and all technical chart…

Shares of GoDaddy Inc (GDDY) were collapsing for the third day in a row before a strong bounce took place at $72.18. The reason for this bounce was easily predicted by pro traders. If you connect the lows of the stock over the last 6 months, the lows all line up perfectly. Today's lows went right to the trend line (as seen in the chart below). Overall, pro traders expect only a day or two bounce, then a massive break lower on GoDaddy. They are looking for a $65.00 target on the stock…

Shares of Sprint (S) have been under a ton of pressure since early 2017, once word leaked out that the T-Mobile deal was unlikely to happen. The stock fell from nearly $10 to its current $5 range. However, even with the tough market conditions, Sprint is showing signs of life. Just in the last week, Sprint jumped from its 52 week low of $4.81 to $5.22. This $5.22 level represents the daily 50 moving average and a major trend line resistance point (as seen on the chart below). Show it…

Shares of Micron Technology, Inc. (NASDAQ:MU) surged again today, hitting a new all-time high of $54.64. This surge tagged a massive trend line that stretches back to the top in 2009 and the top in 2014. When connecting those pivot highs, the trend line extends all the way out to $54.50, the level tagged today. After each pivot high in 2009 and 2014, Micron Technology, Inc. corrected 50%. That means another monster correction is likely at hand. Look for the stock to collapse as low as…

Lockheed Martin Corporation (NYSE:LMT) is a leading defense and aerospace company. The stock has been one of the best performing equities over the past four years. Finally, LMT stock is pulling back over the past four trading sessions. The stock is now close to testing its 20-day moving average. Traders should note that this 20-day moving average is minor support so there is a good chance that the stock could move lower. The daily chart is signaling very solid support around the…

Shares of Universal Display Corporation (NASDAQ:OLED) have one of the tightest, nastiest bear flag formations I have seen. There are high odds of this stock taking a major leg lower in the coming weeks. The first target is $108 and the second target is $90. The key here is the recent news from just days ago that many Asian companies are over-producing OLED displays. Asia and specifically China have a history of overproducing things and dumping them on the overall market, killing…

Shares of CSX Corporation (NASDAQ:CSX) fell after the transport stock reported earnings that beat Wall Street expectations. Does it sound weird, it is falling on an earnings beat? Upon a closer look, some accounting maneuvers allowed for that beat. If you back out those shady dealings, CSX Corporation actually missed earnings. This explains why it is falling. Being a technical chart trader, I have been bearish on CSX Corporation. I just cannot make sense of a railroad stock trading at…

Shares of Boeing Co (NYSE:BA) surged in early trading, hitting new all-time highs at $208.61. However, the rally faded as the day dragged on with the stock giving back all the gains and closing flat at $206.44. This reversal from all-time highs increases the odds exponentially that a top is in on the aerospace company. Boeing Co has an official topping tail in place and should now start selling lower. The next wave of selling will take the stock to the daily 50 moving average, which also…

The markets took a wild ride last week. The S&P 500 surged early in the week on hopes of a business friendly, Romney victory only to get dashed when President Obama won his second term. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) lost $3.40 on the week to close at $138.16. The key this week is to realize it is options expiration. This is where institutions will push the market in the opposite direction from the crowds. After the drop last week, many more…