Today we confirmed the break higher of the 8 EMA from yesterday. Basically the head and shoulders pattern people have been talking about has been negated, for now. I am not saying it won’t happen because to truly completely negate it we will need to trade over the all time highs. The plan I on trading is to most likely buy a gap down tomorrow for a gap fill but if we see a flat open or a gap up, I will likely do nothing because we have come a long way in the past three days. In perspective we are channelling in a long term uptrend – that won’ t change in a day.
Apple ($AAPL) had a very interesting day today, mostly due to the earnings being this evening. If you did not already know, Apple traded higher (about 6%) to then give it all back later on after hours to end up negative (as of now). The long term trend has not changed in Apple – it is still in a nasty downtrend. Horrible. Have not even considered touching it in MONTHS.
Google ($GOOG) had a strong day as it feeds off the earnings momentum. It closed above the 50 SMA today but formed a wick down. I would give it another day or two, maybe it can regain some momentum and power then. Another close above the 50 SMA is key as well.
Amazon ($AMZN) is not quite ready to launch higher yet (in my opinion), it looks as if earnings will be the catalyst for it to really move out of this wedge pattern it has been forming over the past few weeks.
BANKS ($XLF) had a solid day and a hold above 18.20 tomorrow should be buyable for a swing long position.
With all this said, try not to just have short on the brain – it is obvious that is not working. Your cover zone was when we traded above the 8 and 21 EMA. Look at the price action, not your opinions. As always, if you have any questions/comments please contact me via Twitter or StockTwits, or by the Contact Me page on this website.
Sorry no CHARTS today, I am currently on the road…