We had a nice consolidation day after a potent move up, this is very constructive for higher prices. We like to see tight price action near the top end of a move. I will enter long after another day or two of consolidation, and then enter short near the top of this trendline (see chart). You could try to buy today but I suspect there to be a bit more consolidation.
As for Apple, we had an OK day. The problem I see with it is that it opened high and closed way low. It closed at it's lows unlike what the market did. This shows you it has "relative weakness" still. So, if I owned Apple, I would still be long. If I wanted to enter, I would wait for another day consolidation so that you do not have to worry about the minor outside day.
Same thing with Google, we had a minor outside day again, telling us it is still weak. Just because it is weak does not mean we have to dump it automatically, we just need to keep a close eye on it. It would have been better if it just a small inside consolidation day.
The banks ($XLF) and the homebuilders ($XHB) both held higher today, meaning we could see higher prices in the near term future, this is likely because of the fact they are already leaders and will MOST LIKELY continue.
That's it. Let me know if you have any questions, and I hope you had a profitable day.
As for Apple, we had an OK day. The problem I see with it is that it opened high and closed way low. It closed at it's lows unlike what the market did. This shows you it has "relative weakness" still. So, if I owned Apple, I would still be long. If I wanted to enter, I would wait for another day consolidation so that you do not have to worry about the minor outside day.
Same thing with Google, we had a minor outside day again, telling us it is still weak. Just because it is weak does not mean we have to dump it automatically, we just need to keep a close eye on it. It would have been better if it just a small inside consolidation day.
The banks ($XLF) and the homebuilders ($XHB) both held higher today, meaning we could see higher prices in the near term future, this is likely because of the fact they are already leaders and will MOST LIKELY continue.
That's it. Let me know if you have any questions, and I hope you had a profitable day.
