Welcome back to the best post on the web pertaining to stocks (or at least I would like to think that, I know it is not true though). Anyway, if you have never been on this post before I will take a minute and explain it to you. Essentially what this post is designed to do is provide you with a launching pad to do your own due diligence from regarding your preparation for the week ahead. I am not here to do all the work for you, just to help. If you plan on learning this business you better be doing your own hard work because to make it as a trader you need to have your on unique formula that you have developed over the course of your hard work. We can now move on to matter you all came here for… Stocks.
A quick review of lat week –
$SPY – we said we were in an interesting juncture as we held below the 8 EMA and below the bottom half of the large candle but still above the 21 EMA. We went on to say stay that a long trade back over the candle from last Friday and we could see a nice little move back to all time highs. We ended up gapping on Monday pretty large so that trade never developed. We also had a few set ups that looked good going into this week but a good many of them failed as the week progressed. Some of the set ups were: $EA $ATVI – we alos discussed how their was a chance $GLD would would bounce up and out of it’s wedge pattern but remain in an overall downtrend. That exact thing happened this week and now $GLD looks lower again.
Now that we have done our review of last week we can talk about this upcoming week an the markets, which is what you really likely really care about since you are here.
There was talk all week about the wedge pattern. If you are on StockTwits or Twitter you more than likely saw posts and talk about this. Why? Because this pattern was a major inflection point for the market – the resolution of this pattern would like send the market in that direction for at least a few days. Well long story short, the market broke the wedge to the downside and in a pretty potent way on Friday afternoon. Basically we had more than a 1.5% in the $SPY on Friday and it does appear that we will make our way down to the 1600 level, which is the next major support level and breakout level from last month.
As for set ups, I am not seeing much from long the side. I feel like the consensus is that most traders are looking to short a gap up on Monday to eventually reach a target of 1610 to 1600. I would not be heavy long into this week ,and if I were it better be for a day trade or a very very awesome set up. If you are not comfortable shorting, just do not do it – take some time off and come back when the charts are set up again from the long side.
At this point in the post I will share a little video I found entertaining this week.
Alright. Now by this point you are likely wondering where the rest of the post is.. Well, I am sorry to inform you that this is the end of the Week Ahead post for this week. I have finals next week and this weekend has been spent (for the most part) studying for those and therefore the charts and the videos will have to wait for another day. I promise I will be back next weekend with a better than ever Week Ahead post, school took priority this week. Below are the couple charts I posted on Friday. Have a great rest of the weekend. Will see you tomorrow. It’s summer!
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