As we said in last night’s Daily Analysis it looked as if we were setting up for higher prices. We saw some of that today with a lot of names making highs. There is NO reason to call tops, or short strong names. This is the by far the number one rule in trading – buy the relative strength, and short the relatively weak (if you must). There is no reason to be be hero in this tape. The people that are just picking their strong stocks, and riding them have been the winners in this tape.
When we examine Apple we can easily determine NOTHING has changed. It is still in a downtrend, and it does not matter what timeframe you one. Investing, trading, day trading, etc – there is not a ton of money to be made long here and for investors.. There are stocks making ALL TIME highs… Why stick around in dead money?
Google has been strong and there has been NO reason to sell this name. I would not call tops, or short it either. Stay with it. Raise stops, and peel some off – that’s it.
Amazon is trying to come back to life. We will wait to see if shows some more strength though.
Facebook is still not giving you a reason to be long. I like it better once it shows some strength. Be in the strong, this is not strong.
Healthcare stocks are strong, and continue to be where some money is rotating. Look at those for some trades.
Overall guys, do not try to guess stops and do not counter trend trade when the situations are not there. Last week there were some shorts to be made but it was because we were not trending. Now that we are back above the MAs we need to give the benefit of the doubt into the bulls favor.
Here are all my charts from this afternoon. As always, if you would like to contact me please use Twitter/StockTwits – @BenCBanks or the Contact Page here on the website.
I also often post more charts in the evening/afternoon on my Twitter/StockTwits account so I recommend following me on there if you would like the full experience.