As I have been saying for the past couple of weeks now… I will follow the trend until it stops. Today the micro trend stopped – the one that we have seen over the past week of higher highs. That being said, the macro/intermediate trend is far from broken, and we are still in a bull trend higher. The leaders took a dive today like the industrials ($XLI), Small Caps ($IWN), and finally the tansports ($IYT). The leaders, as the name implies, leads – leads higher, and leads lower. We are extended, have been quite some time, and now with the main leaders are looking like they want at least a break. A break that is well wanted/needed. This is not a time to be looking to short the market, I follow the trend, and I do not trade against it and there fore I will not short this up trending market. I would much rather be on the look out for bullish patterns to jump into when the market does decide it has had enough consolidation. I do not think we will we a huge pullback like some are calling for, who knows, maybe it is only to 1490 (very bullish) and then for a high and tight flag, or maybe we pullback to the 1470 level which is more than likely a very buyable spot given the right conditions are the time.
Apple is showing some very rare commitment to this holding higher move. It is still in the game to fill at least part of it’s gap. Now, I do not by any means think this is a time to call bottoms. It is not that strong and is extremely, extremely weak. Trade with a stop under 452.
Google is holding in there. I do like it for higher prices though I would still like to see a couple more days of consolidation before we really get a momentum trade again.
Amazon’s chart is starting to look a little messy. Sold off the gap this morning with strong volume forming a solid red candle. I do not think this is an actionable chart set up right now. Something to monitor.
OGE is holding tough since I mentioned it over the weekend.
TSO is holding in there and looks like it is forming a bull flag – at least the start of it.
AKR sold off some on very light volume. I think this pattern will be buyable again. Retesting the breakout possibly. Let’s wait for the market to set up again though.
Overall, be a little more cautious out there as we some leaders take a break. Maybe not a time to be doing too much initiating.