I am sure if you have even turned on the TV for one second you have heard the dow jones has been up 19 Tuesdays in a row. It truly is an amazing run and goes to show how strong this market truly is.People somehow still think this a shortable rally, why? I do not know why they choose to do this but I would expect that it has something to do with them thinking they are ‘smarter than the market’. No one can outsmart the market, but you can outsmart yourself.
Anyways, let’s get on with some of the action from the day and what I am thinking into tomorrow.
Stocks continue to see rotation which is keeping the indexes afloat very nicely so our job is to notice which stocks and sectors COULD be the next to receive the juice. As this rally has progressed I have found myself focusing more and more on the individual set ups rather than the indexes themselves. I still think that is a good mindset to have, but it takes practice to accomplish (at least for me).
Banks still look a little extended and could use some basing out action, nothing wrong with that at all and this would actually set up the charts alot better for the weeks ahead. A nice basing out pattern or some consolidation would work wonders for the banks in the coming weeks/days.
Apple ($AAPL) Not much to say here. Still in an overall downtrend but trying to form a new pivot low and a higher low as well. Something to note but that is just one step, it still has a lot of work to do to improve to the standard it once was. I feel like if you ignored Apple you would be much better. Forget it.
Google ($GOOG) is trying to consolidate out here and form a nice bull flag or a new channel. No, I do not think it is buyable quite yet. I would give it at least a couple more days.
Amazon ($AMZN) is still having trouble get back over the descending channel. I guess you can keep it on your radar but overall, I think it needs more time and needs to show strength before you really step in – it has not shown strength yet.
Lululemon ($LULU) is setting up nicely for a breakout to all time highs. This stock has a high short interest, it is sitting at all time highs, it is flagging before a breakout. Worth a look if you want to ‘do something’. I am long some.
$USO did not continue it’s breakout from yesterday, I would give it more time to develop a mature pattern. Not out of the game though by any means.
$GLD & $SLV seem to have gone back to their old selves, if this was the bottom (doubt it, but who knows), then they need to hold higher and show strength (bull flag). Until this happens, they are just bounces – that’s all.
With all this said, I hope you had a good day. I hope you are NOT fighting this trend (silly), take your time with new positions. Pick the ones that are basing out and flagging vs the ones extending.