Well the trend continues Nothing has changed for the most part. We are still in a clear and well defined up trend and shorts continue to have to cover. Eventually we will need to consolidate for longer than a day but until that day comes.. I say I you continue to be looking for attractive, non extended longs. This rally is definitely hated, and will continue to be so until we get a pullback or consolidation. We traded higher today on lighter volume and the IWN lagged – make your own conclusions but this could be a sign of a tiring market needing consolidation. Regardless though, the trend is up and until it isn’t – you roll with it. At the point when something changes, you change.
Apple is forming a minor bear flag on the daily chart as it put in a doji today and bounced on lighter volume. This stock is so weak, and hanging by a thread – tread carefully.
Google is holding up VERY well. Google still looking like it wants to go higher.
Amazon had earnings this evening and missed, and then traded higher (alot). This is very common for Amazon. People do not care whether or not they miss earnings – they most likely just think about the potential of the company. Regardless though, the price says higher. Do not chase.
IBM is still holding higher but showing a little signs of weakness. Keep this in mind, maybe not the time to be putting on a position here.
NFLX is so strong, and looking like the next Apple right now. I am scouting it for an entry but it is just so extended right now I will wait for longer consolidation.
The sectors continue to rotate. One’s up, one’s down, and they flip. As long as this keeps up the market will most likely continue too. Today it was the energy stock ($XLE) that picked up today as well as the the oil sector ($OIH). Money is rotating – you have to chase it around until you catch it.
XME – looks like it wants higher. Nice tight bull flag in the hot sector right now. Eyeing highs.
GLD and SLV sill are in a pronounced down trend and I will continue to avoid them until something changes.
XLI – looks like it trying to take a break. Light volume today on the up day. Hard to buy now but it is safe to scope out an entry in this hot sector. If we get a couple more days up here it will likely be ready to go again.
I have come up with a fun name for my favorite set up the “ascending triangle”. I called it the BBAT – “Ben’s Bullish Ascending Triangle”. I am of course open to more ideas though for clever names.
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