Now that we are consolidating these gains we saw on Friday we must look for relatively strong names that appear to be seeing rotation. Rotation is truly the name of the game. All year we have seen rotation. Recently we have seen some minor rotation OUT of the utilities, healthcare, and biotechs, and rotation IN banks, semiconductors, tech. This is all a very good sign as it shows this rally still has some legs to it and looks like it can continue. Whether or not this is a blow off top, I do not know (no one does). I do know about rotation and holding higher and currently we are doing both very well.
Apple ($AAPL) has turned into a short squeeze machine. Keeps on going higher and higher. I would not chase it here. Let it rest.
Google ($GOOG) similar story as Apple, a squeeze to new highs. Could need some rest up here to digest the gains. I do not think it is a short though, needs time to base out.
Citigroup ($C) is one to have on the watchlist. I know it did not breakout today but overall, as long as it holds the 8 EMA it looks like the breakout is inevitable.
Wendy’s ($WEN) had a very nice day. It’s a shame I did not enter on Friday when I talked about it alot. Nice move. Looks like it can go much higher as well. Check out the monthly chart.
Boeing ($BA) continues to grind higher, exactly what you would like to see out of this name. The trend continues.
With all this said, stick with the trend. It pays, and price does too. I would short the weak names (if you MUST short). Have a good evening and if you have questions shoot me an email via the contact me page or Tweet me (@BENCBANKS).
Charts from this morning (sorry no new updated charts tonight on the blog, check my Twitter for the latest charts though) –