We sold off from extended levels today on heavier volume and closing below the 8 EMA for the first time in all of 2013. This is NOT a bad thing, and it does NOT mean game over for all longs. It is a time to maybe short some for a quick trade but to be calling a definitive top is unnecessary. We have a strong uptrend and until that breaks people should be looking to buy the dip and get in the strongest stocks. I know everyone is much more bearish out there, and I will most likely be called a “perma-bull” but the facts are the facts. Here is what we know:
1. Closed below the 8 EMA
2. Heavier volume sell off
3. 21 EMA is below, and not even close to testing (yet)
4. 2 MASSIVE up trend supports come into play that have been supporting this move
5. All the other MAs are all moving higher and in the right direction.
People will always try to call the tops, and the bears will come out today and say they were “right” but when you put in perspective, it really is not that big of a deal. Until we break major support levels we can remain cautious but bullish.
My timeframes tell me:
Long Term: Bullish
Do NOT over analyze things.
Apple is DEAD money, something really needs to change here. I would NOT play this stock at all – there is not money rotation into it and it VERY out-of-play.
Google gapped down along with the rest of the market today after reaching all-time highs. This is not a bullish sign but it is not too bearish yet. Just keep an eye on it.
Amazon is very weak right here, and looks like it is forming a bearish flag. Be careful, if you are long. It is a No trade for me.
NFLX continued it’s rally today after a bull flag last week. It did so on lighter volume however so you need to keep that in mind if long or wanting to be long.
ADBE is looking strong and is on my watchlist as long as it holds this upper level base. Weekly looks good too.
That is it for me today, please let me know if you have any questions/comments. Remember, trade the trend, and be cautious when the market starts to pullback. Buy the LEADERS.