ILMN showing weakness in front of major support Fundamentals:
Illumina made a disappointing start to first-quarter 2016 missing the estimates. Also, rising costs has potential to hamper its growth significantly. This rise in higher operating expenses impacted Ilumina’s cash flow reserve in the reported quarter.
Technicals:
In the mid of summer 2015 the price of stock accelerated with top $242. But big, engulfing, bear candle ended this run to the sky. Then it broke major trend line and deeper correction started. Then, it built sereis of lower highs, which mean that bear are in control. And now, we are sitting in front of major support $130 after dissapointing earnings.
Trade Management:
Break down of major support at $130 and hold below for a few days will trigger Short Entry. Shouldn't go back above $144.50, otherwise it will be break out failure. Respective Target is $92, which make this trade attractive from Risk/Reward point of view.
Market:
$IBB - ETF for bios is underperforming the market. And overall market ($SPY) is building Head&Shoulders pattern (now, we are in right shoulder). That also supports this idea.
Bearsih
EURUSD: BEAR FLAGOn FX:EURUSD , the price formed the bearish Flag on 1H bars. The price dropped significantly on monday and it is making its little correction probably. It is hard to predict who is in control of the price, but after the flag breakout we can predict who get the full control.
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TLT short playMarke is on long term support, Russia is willing to comply with oil production cut, and decent earnings from some of the large powerhouse companies such as facebook. We will see a rally in the markets following the next few weeks. If that is to be true then that means that treasury bonds will drop due to a switch in allocation of money from investors. This is a high risk low reward setup for all traders. It is a 10:1 Risk Reward opportunity which is ridiculous. A potential double top here where there is previous long term resistance. Look on the bottom, volume peaked then lost strength. After we lost strength we had one more wave of buyers (big green volume spike) that failed to breakout and hold above the previous highs which attracted a lot of shorts and sells (big red volume spike after the green one in the circle). This failure to continue trend is a great short play.