Alright so today we did what we have been doing all year long, stair stepping higher with little bursts of power. If the trend is going to stay in tact we SHOULD consolidate for a couple days up here and then trade higher again. I do not know if this is going happen but if the trend we have been seeing all year persists, that is what we should do. I am not saying buy up here. I think that is a horrible idea. Managing risk at these levels is your number one goal and you do not want to buy after a large up day in the markets. No, I am not saying short the markets – people have been doing that for months and failing!
All in all, nothing really has changed from a trending market perspective. We have still been trending higher with a stair step approach.
Apple showed some relative weakness today which should be noted. It is still in a macro downtrend with minor bounces every so often. I still think all in all, Apple is broken and needs more time. Maybe it can come down and form a higher low or maybe it falls apart and makes a new low.. who knows. All I know is the macro POV on it is still broken.
Google is still showing immense strength which is quite impressive. I do not think it is a good idea to be buying it up here and I still think a nice consolidation period would be best for it at these levels, a couple days off would be fine.
Amazon is still making it way up in it’s channel and fighting back after it’s earnings report. Still a choppy mess though, I am not looking at it.
Gold ($GLD) closed below some major support and is currently holding lower within a macro downtrend. Worth a look to the short side.
Oracle ($ORCL) set up failed, made sense after it’s relative weakness Monday. Maybe it can set back up again but as of now, it needs more time.
Banks showed alot of strength today which is pretty impressive. I think a couple days of rest like we saw last week would be best for them right now. No, I do not think a top is in or any of that, all I am saying is that they are tad extended right now.
Have a good evening. Here are some charts –