The market fell below the 61.8% retracement and then closed well above it. I warned this morning about buying on strength when we were up in pre market instead of down like I would have liked to see. It proved prudent early in the day when all we did was fade the gap again. It felt like just another bear day until around mid day when John Boehnor and Obama met and spoke. This changed the market sentiment, and we ended up closing close to highs. I believe we are at a short term bottom. We have a lot of solid resistance levels to go through if we want to really turn things around. I am not long or short anything right now. I do not feel comfortable with the amount of risk I would have to take to take this one home long. If you own it long, I congratulate you, if you do not -- to me this is not the time to chase, there is some solid resistance right above us and the R:R would not be in your favour right now. There will be another opportunity, don't worry.
As for Apple, I think we are also at a short term bottom. We formed another nice reversal here. But then again, the amount of risk you must take to buy into this one is way to much if you are not already long.
Google probably also formed a short term bottom but it was not as potent as Apple, this is because Google was not nearly over extended as Apple. Google could still be considered the stronger of the two though because it is still above it's 200 SMA.
Banks, same deal with them - fell to a perfect support I mentioned yesterday then rocketed off. I would be careful again buying now though, because you would have to gut a pretty big risk in a not so strong market.
Overall, we look a lot better now. A short term bottom may have been put in place today. As a reminder I would like to say, you do not have to trade, learning when to trade is just as difficult as learning how to trade.
As for Apple, I think we are also at a short term bottom. We formed another nice reversal here. But then again, the amount of risk you must take to buy into this one is way to much if you are not already long.
Google probably also formed a short term bottom but it was not as potent as Apple, this is because Google was not nearly over extended as Apple. Google could still be considered the stronger of the two though because it is still above it's 200 SMA.
Banks, same deal with them - fell to a perfect support I mentioned yesterday then rocketed off. I would be careful again buying now though, because you would have to gut a pretty big risk in a not so strong market.
Overall, we look a lot better now. A short term bottom may have been put in place today. As a reminder I would like to say, you do not have to trade, learning when to trade is just as difficult as learning how to trade.
