For the past couple months (for the most part), I have been saying how the bulls have been in control and the trend is up. Nothing has truly changed so I feel like I am a bit repetitive when I say this but the trend is still up and the bulls are obviously still in control. It is apparent there were a lot of top callers in $IYT recently (judging from the short squeeze type of rally).
While the market is extended (of course it is), the likelihood of a sharp drop is unlikely. An inside day or two would be best for $SPY and would truly set up alot of good charts for higher prices. Everyday I look for reasons to sell and everyday I must fight the temptation to sell a stock just because it is “up alot”. The trend is up, remind yourself that every so often throughout the day – it will help. As long as $SPY continues to hold the gap up from last Friday, the more likely we are to see higher prices and another grind higher, like we saw at the start of the year. This is just some thoughts and ideas, not anything is set in stone yet, I am just simply explaining how I am approaching this market.
$AAPL could use some rest up here. It is extended but I do NOT think it is a short. Yes, the macro picture is still pretty bearish but overall on the daily point of the view, it is looking ok. Would not chase here but if it can hold higher it will look pretty good again.
$GOOG is a similar story to $AAPL on a small micro timeframe. $GOOG is showing strength and took the day off today (all fine and wanted). Looks good for higher prices if it can hold higher now. Would not chase until a high and tight flag is formed.
$AMZN is still not showing a ton of strength but then again, we are in a bull market and therefore some of the laggards are likely to see some rotation into them. Nevertheless, I think there are better places for money – not in the laggards like $AMZN at this point.
$C is breaking higher to 2013 highs and looking good. It held higher yesterday and broke today. Would really like to see the breakout hold the next couple days. A nice high and tight bull flag would be good as well.
$MON is looking nice as it bull flags near the upper end of it’s range. I like the name but be aware of how extended the $SPY is. Maybe wait for $SPY to put in an inside day before stepping into $MON.
$UA is also setting up nicely for a breakout over it’s bull flag. Same story here though, it is a small laggard and I would wait for $SPY to put in a bull flag before stepping into it.
Charts below – enjoy your evening. If you have questions/comments feel free to email or Tweet me.