Another week is over, I hope you had a nice one. In a sense, the market has not changed is doing exactly what it was doing last week.. Uptrending. The uptrend is still intact and the buyers (Bulls) remain solidly in control of this market. The dips are bought again, and again leaving the shorts (bears) confused, and frustrated. For the past two weeks I have said that it is very difficult to pick market tops and it would be a bad idea to short an uptrend, this advice still remains true and I hope you are adhering to it. I have, of course, had my lessons of shorting uptrends and calling tops and have learned (like everyone must) that is a bad idea. If you pick a strong stock, in a strong trend, it will be hard to buy at the top – unless of course you buy after an exasperated move. Going into next week we must continue to have the montra and the idea of ‘proven until proven innocent’. If we continue to live and trade by this theory then we are much less likely to fail compared to the fellow who is trying to be a hero and call the tops or cost averaging into shorts. There will be a time to short, and that time to will given to us, and will be shown but it will not be until we start a downtrend….
A few specific stocks that I often cover in my Daily Analysis are as follows. I also post about 20-30 charts on an individual post on Sunday afternoon with the stocks and set ups I am looking at. All the charts are annotated and ready to go. But for now, here are my quick thoughts on some of the “hot names” in the trading world –
Apple is bouncing, and there could be an argument made for it is weak bounce. I tend to agree. It bounced up into resistance today and formed a solid “doji”. This is not a good sign. However, if we are able to hold above the low of the day we should be alright for higher prices and a potential gap fill. There is always the risk though that we continue to sell off, and we must continue to remind ourselves is a broken stock and in a solid downtrend. Potentially playing with fire – but at least you are picking your spots wisely.
Google hit ALL TIME highs today and closed with strong volume, continuation into next week is likely and I like this pattern alot. It would be nice to see a high and tight bull flag to form for about two day to then be able play it for momentum. We shall see.
Amazon is weak. Closing with a solid wick down, and hovering at support. Alot of people would like to short this stock as the P/E ratio is through the roof. I do not care about the P/E ratio as I am a technical trader and the price action will tell me how to trade it. That being said, if it does break this support zone it could offer a chance to short but I would wait for a break of support as the major trend is still up and very much in tact.
Facebook is not in favor right now. Basing or potentially bear flagging on the daily is not giving much of a trade. This is the same situation as Amazon. If we are able to break support with some solid volume behind it then we could see a short set up but until we do so.. Just let it do it’s thing and wait for a new set up.
LinkedIn is on fire, soaring 20+% after earnings last night on absolutely killer volume. I think this stock is heading higher but today is not the time to be loading the longs. I would like to see a base form (similar to Netflix) and then another momentum move higher.
Adobe broke out of its BBAT (Ben’s Ascending Triangle) today and is heading higher. The weekly is not extended and it traded higher on strong volume relative to the overall market’s decreased volume.
The SemiConductors ($SMH) are breaking of a long term base and traded on increased volume. They look good for higher prices as money rotates into another sector.
The hotel stocks continue to impress after coming out of a long term base and all look good for higher prices (given the correct entry). Some that look good are $H, $HOT, $WYN and $MAR.
Gold ($GLD) and Silver ($SLV) are out of play and hard to trade. I do not recommend it. I would much rather buy them after they breakout of their triangles and show some strength.
That is all I got for this week-end Daily Analysis. Remember to check back here on Sunday Evening for all my charts/set ups. Have a nice weekend.
If you have any questions/Comments please feel free to Tweet (@BenCBanks) or Email me via the contact page on the this website.
Ben C Banks
(A few of my charts are listed below but these are just the few I have completed so far)