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Well I believe it is now pretty safe to say we have the fiscal cliff fiasco out of the way, the new year has come. Happy New years to everyone! Washington finally got their act together and cam up with a plan, granted it has not been pasted yet but more than likely it will. I had Tweeted and actually posted on this website (last Friday) about how I would feel most comfortable being cash, long, and finally short going into the start of the week. If you are interested in why I said these things please visit the blog post (Daily Analysis) from last Friday, the link to it is here - http://thebagelshop.weebly.com/3/post/2012/12/yuck-2013-comes-soon-fiscal-cliff-looms-daily-analysis.html - Not so much to brag that I was right when I said that last Friday but moreover, it is a learning opportunity for those that did not exactly know how to view this crisis from a charts POV. I am a sole believer that the charts always tell the story, you didn't have to know that their was a "fiscal cliff" to make money and know how to react come Monday morning.
Now that we have that rant taken care of we can move onto the future. Today we saw a powerful bounce off the lows and closed at the highs with great volume engulfing at least four days. This is all very bullish and in my opinion will likely lead to more upside before we hit major resistance around the 1445 level in $SPX. The longs can celebrate and the shorts should have covered last Friday going into the weekend or at least some Pre market. It is still hard to chase such a candle like this one if you are not already in it so be careful, and MANAGE RISK.
Apple broke out of a downtrend and actually led the market higher for once. This occurred after what people saw as a triple bottom and some slight mirco bullish reversals. Right now you measure the commitment it has and see if it can consolidate or continue, it is hard to chase this candle though as you would have to risk A LOT from a swing trading POV. From a more macro, or long term view however, this would be your buyback time in my opinion There is now very clear support and a powerful move off the lows. The stops for both the long term guy and the short term fellow should be just below 500 - or that is where I would put mine.
Google was not near as strong as Apple today but over the course of the whole month Google would have been a better place to store your money. Going forward I could see Google trading higher (or over Today's highs) as you now have a decent reversal signal and a place to place stops with a clear line. Google is not however my favorite chart pattern and here is why - Did not close at the highs, did not close with AMAZING volume, closed under resistance (the MAs), unlike the index. Still though, Google looks fine and looks like it can build higher. Stops should be at the lows of the day.
Amazon has actually been one of the weaker tech/high beta names lately after the recent sell off which concerned many people. Now however Amazon has bounced but still looks to be one of the weaker ones and here is why - closed under resistance, closed without great volume, MAs are curling down right after price hit highs. For me to really start to like this name more it would have to get over the high of today, it is not a screaming buy right now for me - could still trade higher as it did form a nice potent candle but I do not like the odds COMPARED to some other patterns I am seeing or have seen.
General Motors had yet another explosive day today and quite frankly, I would be taking at LEAST partial profits now as it is ripening for a pullback now that it has traveled so far. This does not mean however it is a short, it is actually still a good long but depending on your timeframe, you may want to take some profits come Wednesday's close. The one thing you should not be doing is buying right here and now, the ship has sailed.
Bank of America has formed another high level base and looks good for the first part of 2013 but keep in mind, you have missed the majority of the move for now, there has been no major correction or any dip under the 8 EMA therefore you must be aware that it will not move as much as it would have down at the 10 now that it is at 11.60ish.
NOTICE: My 2013 predictions/picks will be coming out January 2nd right here on this blog, please, if you would - "share" it with your friends, "tweet" it to followers, and everything else you would like to do to help me out because I spent a lot of time doing this for y'all and I wold like as many people to see it as possible. Thank you.
That's it for now, check back here later for charts with notes going into Wednesday.
Now that we have that rant taken care of we can move onto the future. Today we saw a powerful bounce off the lows and closed at the highs with great volume engulfing at least four days. This is all very bullish and in my opinion will likely lead to more upside before we hit major resistance around the 1445 level in $SPX. The longs can celebrate and the shorts should have covered last Friday going into the weekend or at least some Pre market. It is still hard to chase such a candle like this one if you are not already in it so be careful, and MANAGE RISK.
Apple broke out of a downtrend and actually led the market higher for once. This occurred after what people saw as a triple bottom and some slight mirco bullish reversals. Right now you measure the commitment it has and see if it can consolidate or continue, it is hard to chase this candle though as you would have to risk A LOT from a swing trading POV. From a more macro, or long term view however, this would be your buyback time in my opinion There is now very clear support and a powerful move off the lows. The stops for both the long term guy and the short term fellow should be just below 500 - or that is where I would put mine.
Google was not near as strong as Apple today but over the course of the whole month Google would have been a better place to store your money. Going forward I could see Google trading higher (or over Today's highs) as you now have a decent reversal signal and a place to place stops with a clear line. Google is not however my favorite chart pattern and here is why - Did not close at the highs, did not close with AMAZING volume, closed under resistance (the MAs), unlike the index. Still though, Google looks fine and looks like it can build higher. Stops should be at the lows of the day.
Amazon has actually been one of the weaker tech/high beta names lately after the recent sell off which concerned many people. Now however Amazon has bounced but still looks to be one of the weaker ones and here is why - closed under resistance, closed without great volume, MAs are curling down right after price hit highs. For me to really start to like this name more it would have to get over the high of today, it is not a screaming buy right now for me - could still trade higher as it did form a nice potent candle but I do not like the odds COMPARED to some other patterns I am seeing or have seen.
General Motors had yet another explosive day today and quite frankly, I would be taking at LEAST partial profits now as it is ripening for a pullback now that it has traveled so far. This does not mean however it is a short, it is actually still a good long but depending on your timeframe, you may want to take some profits come Wednesday's close. The one thing you should not be doing is buying right here and now, the ship has sailed.
Bank of America has formed another high level base and looks good for the first part of 2013 but keep in mind, you have missed the majority of the move for now, there has been no major correction or any dip under the 8 EMA therefore you must be aware that it will not move as much as it would have down at the 10 now that it is at 11.60ish.
NOTICE: My 2013 predictions/picks will be coming out January 2nd right here on this blog, please, if you would - "share" it with your friends, "tweet" it to followers, and everything else you would like to do to help me out because I spent a lot of time doing this for y'all and I wold like as many people to see it as possible. Thank you.
That's it for now, check back here later for charts with notes going into Wednesday.
