Now that we are basically here, we need to reassess our gameplan, and see what we could do next. The $SPY hit a new all-time high today, and the $SPX is just a couple handles away. With this type of action.. you do NOT want to be short, or even be thinking about it. Rather, you should be looking for quality longs that would be setting up after we form a new base or pullback. As I said in my post last night.. I specialize in when the market pulls in, holds higher, and then goes. Simple as that. As we extended we do not want to buying as much. And if we do, they better be long-term swings inside bases, or just tactical trades. This being said, there is one thing that we do not want to do EVER in a bull market… SHORT. There are people all over Twitter right now saying they are short, and loading up. They must be smart, or at least smarter than the market (haha), because everyone who has called a top up to this point has been dead wrong.
We need to take a look at step back and look at where we are and say wow… This is amazing, history in the making almost. If we break this level we could be heading much higher. However, to break this level with any type of force we need to BASE and allow some accumulation to occur If we are able to hold higher next to the all-time highs in $SPX for the next couple weeks I will be all over a long trade to bust through the highs. Right now though that is not what is happening. With the $INDU up every single day, it is not giving us an opportunity to buy into bases. We need bases to start swings. I do not start swings from a mid move play. Bases are golden. When the market is basing, and a stock is basing, and they look like they are ready to break out – you know you have the right trade on your hands.
I know I am writing a lot today.. Oh well. You will just have to deal with it. On to Apple….
Apple is trying to hold a lower-level base (see there is that word “BASE”). If we can hold this base a couple more days, we are likely to see a move through the dreaded downtrend line which could offer some strong opportunities. This being said, it takes a lot of energy to deal with Apple. I would not become enamored with it. It is still relatively weak, and the BELOW The 50 SMA, and there I say “NEXT”.
Google is not really doing much. I still think it go higher, but there is no reason to sit through the mess. Wait for some more momentum, and hop on it. I would wait for a new base to form.
Amazon is is not showing any strength at all any more after gapping down on some news this morning (no, I do not know what the news is, I do NOT care either – it is irrelevant). Right now just forget about Amazon from a swing trading point of view, there is nothing there. From a investment standpoint, stick with it – the long term trend is still higher.
IBM hit another all-time high today. Looks god for more. But, as with everything right now, there needs to be a new base before I get to excited about buying. The monthly chart on $IBM looks AMAZING though.
Starbucks had a down day on an up day in the market (RED FLAG). I am not saying game over (far from it). I am just saying, give it some time. It had a big move. A longer term base would help with this name.
Sprint is still inside a large pattern (I am long). I am not going to cover this stock everyday because there really is not much to talk about. There are TINY movements each day and I am in it for a macro pattern to take place. We shall see.
I hope you enjoyed this extended post today (if you read it all). Remember, you can always email me (see contact page), or Tweet me on StockTwits or Twitter (@BenCBanks). Have a nice evening.