Wow, I am tired today. I went to bed at 11;45 last night, and got up at 5:30 this morning. Never the less, let’s do the daily analysis. so basically ($SPY $SPX) today we reclaimed the 8 EMA, and now are trying to hold it. We will see if it sticks. If we can hold above the 8 EMA tomorrow, we are likely going to see all-time highs in the SPX very soon. Unlike in early in March where we were holding higher and it is very obvious we would be going higher, this time is a bit more vague. We are not getting large body candle, and not really holding anywhere. Basically, once we hold under or above the MAs for more than a day – I think we are liking going to resolve in that direction. As I have said all week, I need more information. I have a gameplan, I know how I will act once “X” happens, now all I need is for “X” to happen. You must always have a plan, and a way you are going to act if “X” happens. Anyways, let’s get onto what really matters at this point – the stocks y’all follow.
Apple ($AAPL) is holding in there fine, and it is looking pretty good for higher prices as long as Monday’s lows hold. If we see a breach of Monday’s lows – the momentum is likely not there and you must reevaluate it at a later time. I will likely wait for a break and hold above the 50 SMA before I touch it.
Google ($GOOG) as I said yesterday feels out of play. Not a leader anymore, and now it is just sitting around, I would not be spending to much time or effort with it.
Amazon ($AMZN) looks much more like a short set up with a bounce back into the declining MAs. I would wait for more strength in $AMZN before taking a long position.
Facebook ($FB) has been weak for many weeks now and is now selling off more. Sitting right near it’s newly made 200 SMA – I would not be looking to short, I also would not be looking for the long trade. As with $AMZN – $FB needs to show some more strength first.
$XHB ($LEN, ETC) the hombuilder’s today really took the lead and look good for higher prices. I do think it is hard to chase here, but look for a pullback to the rising MAs, and see how the price reacts there.
$WAB looks pretty good for higher prices, breaking higher before the marker (meaning relative strength), and if the market ants to break higher.. This one will likely go farther and faster.
Home Dept ($HD) looks like short with a stop at the high of today and a potential target of around 67 (only if you are looking for shorts).
Overall, as I have said all week – giving things a bit more time to let the dust settle is not a bad thing. That is what I am doing, and as I said, we need to hold higher, or lower for more than one day and then we can look to trade.
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