The market continued higher today despite all the bears out there that say we must go down now. We do not have to go down now. We are in a slow grind higher and we above all the MAs, until something changes we must assume we continue higher. There is nothing telling us otherwise. Of course tomorrow could bring my short signal.. but until it happens I will continue to remain bullish. I have told you in the past, I will let you know when I turn bearish but there has been no signs of it yet. Going forward I think we see more consolidation or sideways action. We are currently a little extended and could use an extended break. I would not be a buyer here, nor would be a “shorter”, stay put and let the set up develop.
Alright as for Apple. Apple has been a broken stock for a long time now, and nothing has changed today. We did have a wick down today which is good for the bulls and we did close higher. The problem is we are in a massive downtrend and we are sitting right at resistance. With earnings tomorrow there really is not a trade here. If I had to say though… I think we see a pop in Apple similar to what we saw in Google and IBM. I do not usually play earnings though, it is gambling.
Google had it’s earnings after the close today and it popped higher after selling off the week prior. I posted a chart about 15 minuted before the earnings data and said we could see a pop. The chart and the reasoning is listed below. Going forward we need to see if it can hold this gap up. If it can then we could be on our way higher. Do not chase.
Amazon is out of play right now. Not really a chart pattern developing. Needs time. Would like to see a little more consolidation here before heading higher. Something to keep on the watch list.
BIDU and SINA have been in solid uptrends recently. I think SINA needs more time to consolidate as it did have a break out failure today. As for BIDU – I think we need to monitor this situation. I do not like it long yet.. It did wick down but closed below the 8 EMA on volume. I will keep it on my watchlist.
BAC did not get down to my buy point yet. I like it better in the high 10s so I will wait. I think it needs more time but if this does turn out to be the bottom then oh well. We will see another entry coming soon. On watchlist.
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