Welcome back to the Week Ahead post! I know last week’s post was not that great but that was because I had exams and I did not have time to do the full Week Ahead post. Just so you would know, my time studying paid off. I got all A’s for Junior year which is a huge accomplishment for me. I am very proud of that, and it has never happened to me before. Anyways, enough of that… I will stop bragging now.
In this post, if you have never been here before, I go through all the sectors and then a lot of different securities that I believe are setting up for higher/lower prices that have actionable set ups. In this post you will find two videos, one sector analysis video, and one security analysis video. Following the two videos you will find 20+ annotated charts with a lot of set ups and thoughts on them as well.
I hope you enjoy, and by the way, I have an announcement to make about the future of this website so read on or watch the Sector Analysis video and I will talk about it. Have a good one. Let’s get into it.
So this week had a wild ride. Up, down and then up again. Really a change in market character this week as volatility dramatically increased. When this happens, you will have quick moves and some very nice intraday moves as well. Intraday moves are not usually where I specialize but occasionally I will see something extremely intriguing that I must take on an intraday basis. When this happens, the breakout patterns will have a higher tendency to fail and give back the gains sooner relative to slow, low volatile environments. I still believe going into next week we are in a volatile environment with some potential to get back to a grind higher. The reasoning behind this is that we have bounced nicely from the 50 SMA (not on charts), but more importantly the 1600 key level on the SP 500. The true test for the market and most stocks heading into next Monday and specifically Monday is going to be if they are able to ‘hold higher’ and then continue and breakout to new highs. In my opinion (price has not confirmed this thesis yet), we will see a grind higher and a continued trend sooner than later – I remind you though, this is just an opinion. Not an actual call or guarantee. Price still needs to confirm the thesis. With an inside day on Monday alot of charts will set up for higher prices and the stocks that have shown relative strength (banks) will likely outperform.
If however, we do not see an inside day to hold higher on Monday we will likely continue to chop around in a volatile environment until further notice. Let’s hope the later does not happen but we will see.
At this point in the post I usually share a video (usually a song) that I enjoyed. I do this to take to represent taking a break from the stock market and relaxing a little. So, here is this week’s video. It is a country song, but that is more than likely what you will always get from me.
Alright, now that we have had our fun for a little while we can get back to some stocks. I am sorry if you do not like Country music, I think it is awesome. Before we really get back into stocks though I want to tell you the announcement I have been talking about for a few days now.
As you all know, I do something called the Daily Analysis after the close each and everyday and I have done this EVERYDAY the market has been open since mid October of last year. So, it hurts a little to say this but this summer I am transitioning to only doing two posts a week. I am doing this because I will be gone a lot of summer anyway and it will be a nice break for me also. So, until September at the earliest I will now be doing the ‘Week Ahead’ post like this one that will come out on Sunday morning and a Mid-Week Update which will come out on Wednesday evening, every week. Both of these posts will be longer than the regular Daily Analysis posts so you do not have to worry about that. Also, I will still be on Twitter and on StockTwits on more than likely, a daily basis posting charts and thoughts. So, if you have not already followed me on one of those, this would be a good time to do so.
Now that we got that out of the way we can go onto the videos that I made this week. The first one is a trade review video. I do not always have one of these on here but every so often I will throw one on here. This one is of the short $XLE trade I had this past week. Enjoy.
Now that you have read all of this we can let you relax a little by watching the Sector and Security Analysis videos. Enjoy. The two videos are followed by 20+ annotated charts. One more reminder, if you have not already followed me on Twitter and StockTwits please do so as I will not be doing the Daily Analysis as of Friday 6/7/13. Have a good week!