WOW! There is not much else you can say after a day like today, today was crazy, I would have never expected such a move. We now closed at the HIGHS, and above the 200 SMA, this tells me the bulls really have control right now. Saying all this, the longs were really paid today, and I congratulate you on your play. I did not play this move because I would have had to risk way too much for me to be comfortable with the trade (that is why I did not take the Apple trade too) and quite frankly, I like to the trending markets, not the choppy indecisive ones. I would not be buying anything, and I definitely would not be shorting such a potent move.
As for Apple, we saw the bounce everyone was talking about. What a move! Same goes for Apple though, it closed right on resistance, and I would not be chasing the price, and I definitely would not be shorting here.
Google also had a powerful day, not as strong as Apple but Apple was more extended that Google was so that is reasonable to expect. Google is still in it though, I like it and is with everything, it is not your best short candidate nor your best long.
As for the banks, they gapped up but then stalled. I wouldn't get too nervous of this but it is something to consider, they are/were the market leaders and when they aren't leading that is not good. Apple (a weak stock) was leading the market.
A final thought:
We had a nice move off the lows. I would take caution though entering longs. As I said Friday, it could have been your day if you could "gut" the risk (I did not think it was worth it) and today you were paid. If you did not enter Friday, do not worry. There will be another chance. The one thing you really have to not let yourself do is to place an "emotional" buy tomorrow because you missed today's move. Do NOT, those have hurt me alot in the past. Going forward I would say that there needs to be some sort of consolidation then a continuation higher, that would be the ideal situation. A couple points of concern I have is that the homebuilders ($XHB) did not have a strong day today compared to the overall market, they had an inverted hammer, this makes me more weary of the market. I say this because the market leaders LEAD, the weak ones DO NOT (Apple for example). Overall, do not buy long now, you missed the move. Watch for a tight consolidation, and buy into that. There is never a time is OK to "chase" the price. Also, you really do not have to trade, I am not. I haven't in over a weak, I just want a more "predictable" market to trade in.
That's it. Hope y'all had a nice day.
As for Apple, we saw the bounce everyone was talking about. What a move! Same goes for Apple though, it closed right on resistance, and I would not be chasing the price, and I definitely would not be shorting here.
Google also had a powerful day, not as strong as Apple but Apple was more extended that Google was so that is reasonable to expect. Google is still in it though, I like it and is with everything, it is not your best short candidate nor your best long.
As for the banks, they gapped up but then stalled. I wouldn't get too nervous of this but it is something to consider, they are/were the market leaders and when they aren't leading that is not good. Apple (a weak stock) was leading the market.
A final thought:
We had a nice move off the lows. I would take caution though entering longs. As I said Friday, it could have been your day if you could "gut" the risk (I did not think it was worth it) and today you were paid. If you did not enter Friday, do not worry. There will be another chance. The one thing you really have to not let yourself do is to place an "emotional" buy tomorrow because you missed today's move. Do NOT, those have hurt me alot in the past. Going forward I would say that there needs to be some sort of consolidation then a continuation higher, that would be the ideal situation. A couple points of concern I have is that the homebuilders ($XHB) did not have a strong day today compared to the overall market, they had an inverted hammer, this makes me more weary of the market. I say this because the market leaders LEAD, the weak ones DO NOT (Apple for example). Overall, do not buy long now, you missed the move. Watch for a tight consolidation, and buy into that. There is never a time is OK to "chase" the price. Also, you really do not have to trade, I am not. I haven't in over a weak, I just want a more "predictable" market to trade in.
That's it. Hope y'all had a nice day.
