We are currently in a channel, that’s all. We need to hold higher or lower on the daily chart for more than a day to really bring conviction back into the market on either side. The shorts are being burnt, and so are the longs at this point. Less is likely more at this point. Obviously there are some specific stocks that look really well but as a whole, the market is just chopping around. High short interest stocks continue to outperform (trade those if that is what is working) the broader markets. 

The banks are not showing that much strength yet but really are not falling apart (thus less is more). Wait for more info on them.

Apple ($AAPL) has earnings soon and some will take some options into it (not me). I think you take it day by day with it – I do not like the trend but earnings can all change that.

Google ($GOOG) had earnings last week and poppe nicely. Now it is consolidating those gains, really does need over the 50 SMA for it to start to show more strength. 

Amazon ($AMZN) is bouncing off the lower support line but not setting up a buy pattern yet. Just something to keep tabs on. 

Russell ($IWM) bounced today but is still below the 50 SMA and the longer it stays below it the more likely we are to see a further decline, hard to short it though as it keeps are getting a bid.

Relative Strength names – 

Some of the relative strength names I am seeing are: $TSLA, $TWX, $CBS, $VIAB, almost all biotechs. Use this to your advantage and trade (buy) those when the time is right. Have a nice evening.

 

4-22-2013 SPY

Channeling/Choppy – Daily Analysis