Not a whole lot of movement today as the VIX is really low right now, and we ave already moved a lot so the volatility is expected to be less. We closed green, but barely. I would NOT look to be buying right now… I think you can buy on a pullback but buying at these levels is not a good idea. A gap down on Monday will likely lead to some buying though because the bullish trend does continue. If we get down to the 8 EMA I think it will be bought and we can go higher but until then I remain bullish, but not buying. Until we really form a topping tail or break some key trend lines or MAs I think you have to remain bullish on the market. I have learned this week that is a bad idea to try to pick tops. I was hurt more than once doing so. Therefore, going forward, I would recommend everyone, including me to follow the trend and not try to short something that is strong.
So bullish, yes. Cautious, oh yes.
Apple is a NON event. I honestly do not know why I cover everyday. Would yall mind if I did not? I will if everyone wants me to; leave a comment with your preference. We are still in the daily wedge pattern with 500 support. To really get anywhere we need to break the down trend line.
Google seems ok, and the bullish bias remains but I do not see an actionable set up or a strong buy right now. It still looks good though.
Amazon I really like, and I said that recently. I think it goes HIGHER. Nice bull flag, and a OK volume pattern. Overall, bullish. Stop should be in the gap.
Wells Fargo reported today pre-market open. Sold off some and then rallied back. I think we can and should expect some selling from the banks coming up. With the amount of distance they have traveled.. I would not be surprised to see it a “sell the news” type of play.
I am long TWO things right, same as yesterday and for my benefit let me tell you why:
$X – sold off hard today which I did not like at all but I am still in it. It sold off on lighter volume and is still inside the consolidation box/bull flag. I have a loose stop on it because the weekly looks good and it is more of a swing trade. I have patience.
$FWLT – I am long with one because of the volume yesterday. I am down in this one as well but then again. it still is looking strong. Overall, the trend is UP and I think it can continue. Stop is also loose on this one as I want to follow the trend, and not the day to day action.
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Have a nice weekend.