If you go back and read last night's post I said that I will feel comfortable and be a much "bigger" bull once we have a continuation day off these higher lows. While we continued today, it was with no conviction and right into resistance. Therefore this does not constitute as a follow through day. We also now extended again on the daily time frame and could easily pullback some after forming a doji to close the day. Could be a quick short trade here.
Now to Apple, the one everyone really cares about. We saw a doji today in the weakest high beta stock there is right now. I would not be buying Apple right now. It needs to consolidate some more and give a more comfortable entry. Remember it is the weakest high beta name out there right now, so why not look where the money is actually going? Like $AMZN or $GOOG? I do think we eventually see higher prices though and as for price targets (I was asked today), it is hard to say. All you can really do is measure the levels. No one really knows where it goes, and to guess a specific price (target) where it would turn is silly. Use price targets for exits, right by the resistance and remember - no one knows exactly where we go.
Google was strong again today providing follow through from the past 2 days. I would not buy this long now. You have missed the move. It is time to set up a new level to trade against The worst feeling/idea is to chase price up, get stopped and then watch it go right back up.
Amazon is VERY extended and has not been on my buy list for a long time because of this. You just can't get great entries with stocks like this, the R:R is really not attractive here. Wait for a pullback that will more than likely be buyable.
Finally for IBM, we traded down today and showed continued relative weakness. There really is not alot to be said about this one as it is obvious this is not where the money is and I recommend sticking with the strongest.
Overall, still healthy action. We need more time though. We are now extended again on the indexes and could pullback (as we are trading down about .25% AH now). I will be looking to bid into a pullback because this market still looks healthy and fine but nothing can go straight up.
Now to Apple, the one everyone really cares about. We saw a doji today in the weakest high beta stock there is right now. I would not be buying Apple right now. It needs to consolidate some more and give a more comfortable entry. Remember it is the weakest high beta name out there right now, so why not look where the money is actually going? Like $AMZN or $GOOG? I do think we eventually see higher prices though and as for price targets (I was asked today), it is hard to say. All you can really do is measure the levels. No one really knows where it goes, and to guess a specific price (target) where it would turn is silly. Use price targets for exits, right by the resistance and remember - no one knows exactly where we go.
Google was strong again today providing follow through from the past 2 days. I would not buy this long now. You have missed the move. It is time to set up a new level to trade against The worst feeling/idea is to chase price up, get stopped and then watch it go right back up.
Amazon is VERY extended and has not been on my buy list for a long time because of this. You just can't get great entries with stocks like this, the R:R is really not attractive here. Wait for a pullback that will more than likely be buyable.
Finally for IBM, we traded down today and showed continued relative weakness. There really is not alot to be said about this one as it is obvious this is not where the money is and I recommend sticking with the strongest.
Overall, still healthy action. We need more time though. We are now extended again on the indexes and could pullback (as we are trading down about .25% AH now). I will be looking to bid into a pullback because this market still looks healthy and fine but nothing can go straight up.
