Well with the market making new highs almost everyday we automatically start looking for longs… So, I did. I have looked over the charts a decent amount this evening and I have been left with a mixed bag, and alot of mixed signals. Some charts look GREAT (Ex. $DIS, $PG, $PFE, and more). Some charts also look quite BAD (Ex. $CAT, $IWM, $NFLX, $LNKD, $MOS). With this being said, I think we are in a tough place in the market. Obviously some things are working from the long side, and some are working on the short side. Almost like the market is in “limbo”, trying to figure out which way we really want to go. My personal opinion is that the market is running out of gas and slowly the market is taking out stocks one by one. The banks ($XLF) is still holding up pretty well, but this just adds to the confusion and mixed signals as it has showed it’s weakness lately. I think less is more right now. Might as well wait for more info. I think the momentum will continue on the downside in $IYT and $IWN, and eventually it may spread to the other indexes. Until then, be patient on the short side. The time will come. And most importantly of all, have a process, and a strategy so you know how to deal with this situation and whether or not (according to your process) you should be in the market, or waiting, or shorting. If you would like to read about MY process you may do so by clicking here.
I will quickly talk about $AAPL and $GOOG here —
$AAPL is still VERY weak. Had a small reversal today but overall, I do not think it is something to spend time on. Move on. Please.
$GOOG woke back up again (adding to the confusion as it was weak) and I guess if it can hold higher it would be constructive for higher prices. Just be careful.