Alright guys, sorry for the delay on the post. I was at $SBUX (Starbucks) studying for an exam this evening.
Let's get started. The $spy fell at the start of the day to a new low and then really showed some strength near the end of the day thus forming somewhat of an "outside day" and a minor hammer. A bounce to around 144.40 is definitely probable but is it a great long? Well, depends on your style. If you are in front of your computer and a day trader then yeah, maybe you can nimble some. But for the swing trader -- this may not be the best play for you. I also think the Risk to Reward is too little. You risky at a minimum .50 for a 1.00 return -- that isn't AMAZING. That being said, if you got long at the LOD (Low of the day) today then yeah, I would stick with it and maybe trim some around the 144.40 area. Any continuation over the 144.40 area would put us back in the running to the top of the channel we are trading in. If you are asking if I am long anything right now... Well, no. I am not. I usually buy after hours so I can see how the market closes but today I didn't think the R:R is the best, it went up too much after hours (I don't chase) and the volume is lacking.
Apple, $aapl, WOW! Apple had an amazing day today gaining over 4%! It basically totally negated the huge red bar we saw on Friday. This being said, with the iPad Mini coming out tomorrow and given how weak it has been, I am not buying it. Also, at this point I feel like you would chasing the price up -- DON'T chase -- it WILL kill you. Apple is also sitting at some minor resistance. So can it continue? Of course it can, and probably will (at least gap higher) but is it a good buy right now? Probably not.
Google, $goog, Google showed continued relative weakness - it is trying to find a bottom but it hasn't quite yet. I'll be keeping a close eye on this one.
Banks -- The banks continued to show some strength today but it wasn't great. It dropped a pretty good amount in the morning before coming back to close even for the day forming a hammer. So, it could be an alright small swing entry here but it isn't awesome. $bac, Bank of America however did hold well and is still forming a place to break out of. I will be watching $bac closely -- this one will break out and go soon.
HomeBuilders -- The homebuilders showed continued strength today, and it is very impressive. These can definitely continue on but it looks like they could still use a little more time of consolidation.
Let's get started. The $spy fell at the start of the day to a new low and then really showed some strength near the end of the day thus forming somewhat of an "outside day" and a minor hammer. A bounce to around 144.40 is definitely probable but is it a great long? Well, depends on your style. If you are in front of your computer and a day trader then yeah, maybe you can nimble some. But for the swing trader -- this may not be the best play for you. I also think the Risk to Reward is too little. You risky at a minimum .50 for a 1.00 return -- that isn't AMAZING. That being said, if you got long at the LOD (Low of the day) today then yeah, I would stick with it and maybe trim some around the 144.40 area. Any continuation over the 144.40 area would put us back in the running to the top of the channel we are trading in. If you are asking if I am long anything right now... Well, no. I am not. I usually buy after hours so I can see how the market closes but today I didn't think the R:R is the best, it went up too much after hours (I don't chase) and the volume is lacking.
Apple, $aapl, WOW! Apple had an amazing day today gaining over 4%! It basically totally negated the huge red bar we saw on Friday. This being said, with the iPad Mini coming out tomorrow and given how weak it has been, I am not buying it. Also, at this point I feel like you would chasing the price up -- DON'T chase -- it WILL kill you. Apple is also sitting at some minor resistance. So can it continue? Of course it can, and probably will (at least gap higher) but is it a good buy right now? Probably not.
Google, $goog, Google showed continued relative weakness - it is trying to find a bottom but it hasn't quite yet. I'll be keeping a close eye on this one.
Banks -- The banks continued to show some strength today but it wasn't great. It dropped a pretty good amount in the morning before coming back to close even for the day forming a hammer. So, it could be an alright small swing entry here but it isn't awesome. $bac, Bank of America however did hold well and is still forming a place to break out of. I will be watching $bac closely -- this one will break out and go soon.
HomeBuilders -- The homebuilders showed continued strength today, and it is very impressive. These can definitely continue on but it looks like they could still use a little more time of consolidation.
