Good afternoon. Welcome back to the Daily Analysis. There is a little more to talk about today compared to yesterday and then day before. Today we actually have some different action and we closed red (one day does not make a trend obviously). We made a new high and then closed brealey red, not bearish at all but it could signal some rest in the coming days rather than a skyrocket higher like we have seen. There also seems to be a slight lack of set ups in the works as well. Alot of the sectors have already extended and now need some basing. I know that there are some individual names that are still setting up fine ($YY, $LOCK), but as a whole the market seems to be leaving us with a lack of true a+ set ups.
What this lack of set ups means to me is that we are likely going to rest for a few days and after a few days of sideways action we will likely (because the trend is up), continue higher. A few days in alot of sectors will allow us to pick out the relative strength in individual names and then buy them for the next sector rotation and likely continuation.
Gold and Silver bounced today but are still in a macro downtrend though today was mildly potent. For $GLD ad $SLV to build off of today they will need to ‘hold higher’ and break the macro downtrend line.
Oil – We talked about how the oil sector could see some inflows this week. Today was a confirmation of this thesis and it looks as if with some ‘holding higher’ they will likely be a good swing trade. Another oil ETF that is setting up is the $USO – it has a macro (yearly) wedge pattern that is developing and is trying the breakout of. From a micro perspective it is trying to breakout of small downtrend line today after it ‘held higher’. I do like this pattern in $USO and it looks as if it can continue.
Apple ($AAPL) showed some strength today and continues to try to develop the right side to it’s inverse head and shoulders pattern. Still needs some time to confirm this pattern but so far so good. Overall downtrend is obviously still in ract though.
$TSLA is holding higher and a few more days above the 8 EMA will likely set it up to make new highs and hit $100 a share. I think this is a natural target at this point.
Have a great evening.