I told you yesterday be hesitate with this market and try not be looking to add to many positions, even look for a cute short. That was right in some aspects, and remains true in others. The cute short was “cute” for a reason – it against the trend, whenever you trade counter- trend you are putting yourself at a much greater risk of losing. I do not recommend it, and that is why I did not short this market yesterday. If you did, well you hopefully got stopped out quickly and did not let your cut turn into a “gusher”. Going forward I think we need to remain cautious as we are in a choppy type of trading environment after coming so far so fast. It is more than likely not a time for a ton of longs with $SPY or shorts either. People will continue to TRY to justify reasons to short, and think they have spotted a topping pattern but until one of these patterns confirms – stay with the trend. That is so simple.
Apple showed us something different today for once. It traded on higher volume, and engulfed a couple days, I know I said yesterday that Apple was dead money and you shouldn’t be in it. That was completely true yesterday but now you must look at slightly different. Here is the way I view it – Apple is extremely weak still and has a lot to prove but it is showing signs of improvement. There is always a greater risk of something getting sold while in a downtrend vs. an uptrend.
Google – I do not like the way Google closed but overall it wasn’t too bad. It is holding the 8 EMA and it would be nice to consolidate more at highs.
Amazon is still relatively weak. Needs to get above these declining MAs next to go anywhere.
CTRX – CTRX looks good going to into tomorrow for a breakout play to all time highs.
C – C remains on the watch list as the BBAT is continuing to take shape.
ADBE – Still in a BBAT and closed strong today. Nice trend.
Have a nice night.
Ben C Banks.