Friday, December 7th Recap
Today's action was tough off the open, but as the day closed we saw very bullish movement. Taking a look at the SPY chart for today, we can see the all-to-familiar gap and fade to start the day. We faded down to support at 141.80 and the bulls proved to show the upper hand from then on. As we said yesterday, we expected a slow grind higher, and that's exactly what we got. Overall today's action was yet again constructive. The close above 142.20 was extremely bullish, and many of our top stocks proved to hold support throughout the day.
The banks continued to show their relative strength, with JPM leading the way. Bank of America held higher and looks to be consolidating nicely, while WFC may want to break through 33.50 next week. Goldman has been lagging as of late, and has been range-bound for the last 4 days. Watch for a breakout above 118 or below 116.
XLU and the utilities are holding higher as well, as the 200-day proves to be significant resistance. Some of the top holdings to watch from this fund are DUK, SO, D, NEE, and EXC. Of this list, EXC is my sleeper! Keep an eye on this one, if we can break 30 get ready for a HUGE move! Don't front-run this, though, as it has been beaten up and it may take some time.
The Homebuilder's couldn't hold the 21-day today, as the next line of support seems to be around 25ish. I will be staying away from this one - as much better setups have come up lately.
GLD and SLV both had a good day today, but still aren't very tradeable in my opinion. Both of them need to base above the 8-day and 21-day for me to regain my bullish sentiment.
Overall, there was still some good action from our market leaders. As we saw earlier, the banks have been outstanding. I expect the leaders to take a small rest early in the week, while some of the ones that haven't moved yet to play a little catch-up (namely GS). Additionally, we are seeing a great setup from in MNST, as it held higher today on below average volume. NFLX is still holding up well from Tuesday's move, but the short interest remains to hold it down. FSLR seems to have reached its short term high, so expect a pull-back here temporarily. LNKD has based at 106, and a move through 110 seems highly probably. My price target is 118 by the end of the year. PCLN is still holding that 657 area, which is great to see. The 200-day and 21-day are slowly but surely catching up, and I expect a bust out move very shortly. GOOG had some trouble holding 685 today, which was the price that I have had my eye on for a while. Watch this area going into next week for further guidance into short term price action.
In conclusion, I think that this week was very hard to keep positions more than one day. You had to be very prudent and tactical, and keep your profits before the market swung on you. The SPX index held 1410 on Friday, as that still proves to be the pivot point for the market. If we look at the move we've made from the 11/16 lows, the market still is very very bullish. The quick jump we made that first week after the reversal is making things confusing for the bulls. However, I think once we settle down, digest, and let the averages catch up, we'll be in great shape. This may take awhile, as trading this late in the year seems to slow down. For now though, I remain bullish.
Lastly, stay tuned for the Weekly Watch! There are so many great set-ups heading into next week I can hardly contain myself!
Have a good weekend, talk to you soon.
The ET Team
The banks continued to show their relative strength, with JPM leading the way. Bank of America held higher and looks to be consolidating nicely, while WFC may want to break through 33.50 next week. Goldman has been lagging as of late, and has been range-bound for the last 4 days. Watch for a breakout above 118 or below 116.
XLU and the utilities are holding higher as well, as the 200-day proves to be significant resistance. Some of the top holdings to watch from this fund are DUK, SO, D, NEE, and EXC. Of this list, EXC is my sleeper! Keep an eye on this one, if we can break 30 get ready for a HUGE move! Don't front-run this, though, as it has been beaten up and it may take some time.
The Homebuilder's couldn't hold the 21-day today, as the next line of support seems to be around 25ish. I will be staying away from this one - as much better setups have come up lately.
GLD and SLV both had a good day today, but still aren't very tradeable in my opinion. Both of them need to base above the 8-day and 21-day for me to regain my bullish sentiment.
Overall, there was still some good action from our market leaders. As we saw earlier, the banks have been outstanding. I expect the leaders to take a small rest early in the week, while some of the ones that haven't moved yet to play a little catch-up (namely GS). Additionally, we are seeing a great setup from in MNST, as it held higher today on below average volume. NFLX is still holding up well from Tuesday's move, but the short interest remains to hold it down. FSLR seems to have reached its short term high, so expect a pull-back here temporarily. LNKD has based at 106, and a move through 110 seems highly probably. My price target is 118 by the end of the year. PCLN is still holding that 657 area, which is great to see. The 200-day and 21-day are slowly but surely catching up, and I expect a bust out move very shortly. GOOG had some trouble holding 685 today, which was the price that I have had my eye on for a while. Watch this area going into next week for further guidance into short term price action.
In conclusion, I think that this week was very hard to keep positions more than one day. You had to be very prudent and tactical, and keep your profits before the market swung on you. The SPX index held 1410 on Friday, as that still proves to be the pivot point for the market. If we look at the move we've made from the 11/16 lows, the market still is very very bullish. The quick jump we made that first week after the reversal is making things confusing for the bulls. However, I think once we settle down, digest, and let the averages catch up, we'll be in great shape. This may take awhile, as trading this late in the year seems to slow down. For now though, I remain bullish.
Lastly, stay tuned for the Weekly Watch! There are so many great set-ups heading into next week I can hardly contain myself!
Have a good weekend, talk to you soon.
The ET Team