Notice: I put two ads on my site, one on the Trading Journal page, and one on the charts page. I chose not to put them on this page because it is my most popular page and I do not want to bother you too much. I do earn money off these ads but it is not much at all and I only get paid when people click on them. The reason why I put them on was that I spend a couple hours doing this every night so it is just a little way to help justify that without going to a subscription based site. I hope you understand. Thanks for commitment and participation in my site. 
On to the Daily Analysis. Today we rallied and sold and rallied and sold. Today was a choppy day and did not provide much for swings, I do not plan on participating in this current market condition from a swing perspective, it is way to indecisive. We have formed two dojis in a row now and that tells me we really do not have much conviction to either side. I am glad we close green but then again, it does not mean much when you look at the scheme of things, we have two dojis and virtually UNCH compared to yesterday.  We will most likely move on any significant news, good or bad and that will be a direction to trade with. I cannot say with great certainty at all which way we will go from here. With Apple selling off hard but the banks and the Dow doing well, I really do not have a clue (which is alright, you do not have to know everything, you can't).

Now to Apple, everyone's favorite? Well I doubt so after today. What a disgusting day. We sold off a ton and engulfed the past two weeks. I do not think anyone was expecting this much of a downside. We were weak yesterday and all last week but holding in there. Now we are not at all. Of course we could get a bounce here and there (and maybe a slight one tomorrow) but overall, until proven otherwise - this one is in the penalty box and should not traded long for a swing or investment. Personally a fall below the 500 level with a close there will more than likely send some investors off the "cliff". Do not play Apple, unless for a trade. 

Google sold off a little again today, we do not want to see too much more of this going on in Google. We need to see a green day soon to confirm a still bullish sentiment. We have been selling on lighter volume which is good sign but still, selling is selling. We need a green day soon.

Amazon is holding tough. It is really amazing how this one is doing. I do not want to buy up here on Amazon because of the rest of tech land selling but it is still holding in there. 

 I feel the same way about Facebook as I do Amazon. Needs to consolidate more and prove itself longer in this tape than it would have if Apple hadn't done what it did. I am not a buyer. Up day with lighter volume.

Netflix sold off a little more than I thought it should today and is not resting at support. In a strong strong tape it could be a bounce buy but this tape is far from that. So me personally, I am not a buyer. Needs to prove itself by consolidating. 

IBM today showed us it is still weak, but that is not a huge surprise. It has been weak for quite some time now. It would need to hold 185 at this point. I would not trade this long. Another tech that is weak....

The good news about today is that the more Apple sells off, the less an effect it has on the market. Which is a good thing at this point. Less is more in Apple right now, literally. I hope everyone had a nice day and I will see you all tomorrow. As always here is my contact info and Twitter/StockTwits handle (where I often post charts). Also, remember to check out the charts page on here, wink wink, nudge nudge ;).

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12/5/2012 08:13:26

Ben: Great thoughts. I need to study your charts for a few days before I understand fully all the details of your analysis. Mr. B.

12/5/2012 10:02:44

thanks for your thoughts as always! do you have any thoughts on restaurant stocks like DRI, YUM, MCD? that industry has been hard lately.

p.s. I clicked through your two ads...every little bit helps! :)

Ben C Banks
12/5/2012 10:19:24

Thanks! You are right, they have been hit heard lately. I would stay away, just cause they are beaten down and have obviously done so for a reason. It is much smart to buy something that is closer to the highs and is going higher than trying to pick a solid bottom. Though, if you must trade them -- $WEN and $BKW are you go-to's in that sectors. Seem to be the ones that are holding up well. $WEN is a bit ertactic though and $BKW hasn't got a whole lot of history but is going higher on good volume.

P.S. Just so you know, I only got .02 for you clicking, I wasn't lying when I said I didn't get much :)

Ben C Banks
12/5/2012 10:32:56

I actually just posted a chart of $BKW on my charts page, go look at it. It looks good for higher prices but can easily become extended.


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