What a day and I must admit… quite impressive. Volume wasn’t great, but not too bad either. We have earnings to thank for this rally as optimism grew and the market shrugged off employment and housing numbers.. will we continue to ignore the generally unimpressive American economic reports (while China continues to show strength)? Or, will we continue to lean on earnings and, more importantly, guidance?
It’s really hard to say at this point – the market didn’t seem to care about the NFLX numbers, but are starting to feel the AMZN pressure a little more. My feeling is that we’ll struggle to continue today’s momentum through tomorrow. Short-term traders are ruling the market right now and I would expect some profit taking after today’s SPX move up over 2%.
The $SPX daily chart…
- RSI14 is north of 50 (good news)
- We broke through trendline resistance and held above (good news)
- We broke through SMA50 and held above (good news)
- We tested horizontal resistance at the 1098 range and failed (cautious)
- Volume didn’t imply a breakout (cautious)
- Big one day moves often consolidate or are followed by a day of profit taking.. Especially on Fridays (cautious)
USU – looking for move through top trendline resistance for possible long play. The volume action and strength of move will determine whether this is a likely scalp or swing. Also looking for MACD positive cross and RSI14 push through 50 to support swing.
ACAS – Nice coiling action with a good-looking rounding Full Sto. There is a lot of potential here for a breakout, so keep this one close to your watch list. Needs to get above SMA100 before I’ll consider long.
CIGX – I freaking love this chart. Breakout above this trendline and we have a great looking swing opportunity with trailing stop. I actually played it today for a nice little return on a scalp, but I want more J
LXRX – I like the volume interest today and strong RSI14 move through 50. I might consider a buy if it holds above SMA50.. more confirmation above 1.40.
UTSI – Keep an eye on a move above trendline resistance. Needs to hold SMA50 to confirm strength. I like the improved volume over the last 4 trading days.
VG stuck in a descending wedge and desperately needs to hold horizontal support. Possible entry on support or on breakout above descending trendline resistance.
LTXC – Possible support play here on over sold indicators.. risky and you’ll need a stop just below trendline, but it could drift back up for a nice swing.
MPG – Hasn’t been the best mover, but I have to keep an eye on these consolidating patterns and watch for possible breakouts. Long above top trendline.
As always, check out the news on all of these – earnings, etc. – and minimize holding too much at one time and holding stocks into earnings.. it’s a good way to make money, but also a great way to lose it.
See you in the boom factory tomorrow.
