September 2017 - Page 2 of 7 - INO.com Trader's Blog

Tech Drags Down NASDAQ

Posted on September 25, 2017 by The INO.com Team

Hello Traders everywhere. A drastic selloff in tech stocks has dragged the NASDAQ by more than 1% on today countering the gains made in the energy sector. North Korea's latest warnings are adding to the downbeat mood on Wall Street and in Washington as well.

Crude oil is up over 3% on the day and trading above $52 a barrel for the first time is several months. This rise is due in part to news that The Permian Basin of Texas and New Mexico holds 60 billion to 70 billion barrels of yet-to-be pumped crude oil, according to a study by IHS Markit Ltd. That's enough oil to supply every refinery in the U.S. for 12 years and have a market value of about $3.3 trillion at current prices.

Key levels to watch this week: Continue reading "Tech Drags Down NASDAQ" →

Fed Takes On Gold Unintentionally

Posted on September 25, 2017September 25, 2017 by Aibek Burabayev

In my previous Gold & Silver post published earlier this month, I promised to update a long-term chart of Gold as I observed some interesting price behavior in a related instrument. But before I do that, let me speak about the Fed’s decision last Wednesday and that “related to gold” instrument first.

The positive dynamics of the US economy underpinned the Fed’s decision to finally start to trim its huge balance sheet next month, besides that there is a big chance of another rate hike this December. It wasn’t a shock to the market, and some big players already started their game weeks before the Fed moved from rhetoric to action.

The Fed’s decision could have a double impact on US interest rates as falling US Treasury notes increase the yields, and the impending rate hike could secure that situation. I was writing about the high possibility of this almost a month ago and last Wednesday we received a first-hand confirmation from the Fed. Continue reading "Fed Takes On Gold Unintentionally" →

Weekly Futures Recap With Mike Seery

Posted on September 24, 2017September 22, 2017 by The INO.com Team

We've asked Michael Seery of SEERYFUTURES.COM to give our INO readers a weekly recap of the Futures market. He has been Senior Analyst for close to 20 years and has extensive knowledge of all of the commodity and option markets.

Michael frequently appears on multiple business networks including Bloomberg news, Fox Business, CNBC Worldwide, CNN Business, and Bloomberg TV. He is also a guest on First Business, which is a national and internationally syndicated business show.

Crude Oil Futures

Crude oil futures in the November contract settled last Friday in New York at 50.44 a barrel while currently trading at 50.50 primarily unchanged for the trading week which is a rare occurrence as this is a very volatile commodity. I will be recommending a bullish position if prices close above 50.88 while then placing the stop loss under the 10-day low standing at 48.28 risking around $1,300 per mini contract plus slippage and commission. Oil prices are right at a 15-week high trading above their 20 and 100-day moving average telling you that the short-term trend is higher with heating oil hitting another contract high in today's trade while unleaded gasoline continues to remain firm. I am bullish the entire sector across the board. The chart structure in crude oil is excellent due to low volatility, and we could be involved in a bullish position at Friday's close so keep a close eye on this market as I think the commodities, in general, are moving higher as the bearish trends have finally come to an end in my opinion.
TREND: HIGHER
CHART STRUCTURE: EXCELLENT
Continue reading "Weekly Futures Recap With Mike Seery" →

HealthEquity Strikes Again

Posted on September 23, 2017September 22, 2017 by Noah Kiedrowski

HealthEquity – Delivering Robust Numbers

I highlighted HealthEquity Inc. (NASDAQ:HQY) earlier this year as a great growth play in the ever-expanding Health Savings Accounts (HSAs) space. HealthEquity just reported big beats on both the top and bottom line, posting 28.8% year-over-year growth in revenue. HealthEquity’s IPO was in 2014, and since then the stock has returned 160% moving from ~$17 to currently ~$43 and touching $55 earlier this year. HealthEquity has been riding this secular growth market since its IPO and based on its recent string of earnings; the company is continuing this performance. Over the four quarters including the most recent earnings announcement, HealthEquity has beaten on both EPS and revenue while posting double-digit growth. HealthEquity posted annual revenue growth of 44% when comparing FY2016 to FY2017. The company has already posted robust revenue growth of 56% when comparing 1H2017 to 1H2018 (Figure 1). The sustainability of this growth will likely move in lock-step with the growth in the HSA market while optimizing revenues extracted from the investments within these accounts via offering investment advising, collecting fees from the investment line-up and its newly announced 401k with paired HSA offerings. I feel that HealthEquity will continue to post strong growth as it services the double-digit HSA growth market and manages more assets and investments within these accounts. As HealthEquity rolls out additional products such as the launch of its own 401k offerings paired with HSA accounts, revenue will continue to accelerate.

HQY Quarterly Revenue Growth
Figure 1 – Previous quarterly earnings for HealthEquity, posting double-digit growth

HealthEquity’s Q2 Earnings and Future Growth

HealthEquity reported another great quarter and the stock responded by appreciating by 12% after opening the next morning, jumping from $42 to $47. HealthEquity reported EPS of $0.21 and revenue of $56.9 million compared to last quarter with EPS of $0.23 and revenue of $55.4 million. These EPS and revenue figures beat estimates by $0.06 per share and $1.24 million with the latter revenue figure posting 28.8% year-over-year growth. Continue reading "HealthEquity Strikes Again" →

Stock Market Slips On Threats From North Korea

Posted on September 22, 2017September 22, 2017 by The INO.com Team

Hello Traders everywhere. North Korean Minister of Foreign Affairs Ri Yong Ho said Thursday that the country may consider testing a hydrogen bomb in the Pacific Ocean. If Korea does indeed conduct the test, it would be North Korea's first nuclear test beyond its borders. That statement has left traders with an uneasy feeling heading into the weekend.

Apple Inc. (NASDAQ:AAPL) continues to be a drag on the DOW as it looks to close out the 3rd straight week of declines with a -5.5% loss on the week. This is by far their worst weekly performance ahead of a major product launch since the original iPhone was released back in 2007.

Crude oil can't make up its mind and is trading in a tight range right above the $50 mark for the week. This sidelines action comes after an OPEC gathering concluded with no decision on an extension or deepening of supply cuts.

Key levels to watch next week: Continue reading "Stock Market Slips On Threats From North Korea" →

Month: September 2017