Tuesday, November 20th Opening Bell
Today proved to be the gap 'n go that the bulls were absolutely praying for. After many "professionals" have been claiming a bottom is in (I've been hearing this since late October), yet again this question will pop-up. The answer to this question is actually quite simple -- only time will tell. Currently I am pessimistic and do not think that this bounce, and especially the size of it, is constructive to a new trend. Many bulls are just scrounging around trying to reclaim losses they have been taking since the October highs and shorts are covering from the pressing last week. For this trend to change my opinion I will have to see today's gap hold through next week, because currently I have a feeling that the lows are not in for the year. The best thing we can see tomorrow is a gap down, and constructive work to the upside. Too sharp of a move is not great long term.
The SPY's closed up just over 2% on Monday, at 139.13. This was a key range to hold a few weeks back, and proves to be yet again.
The QQQ's closed up 2.3% to 63.78 and would need to see 63 - 63.10 hold this week for a new trend to form to the upside.
Something to note for the rest of the week - After the June 4th lows were put in, we saw a jump up and hold for a few days. The same pattern has came up here for the SPYs and QQQs and, in my opinion, this is the BEST case scenario for the rest of the year. Consolidation here would be a great thing going in to December. So, my advice, is to keep pressing your winners and have defined stops. Days like today happen less than 5 times per year, but have defined exits and don't get too greedy.
A few short notes before we bring in some charts:
- XHB & XLF: Gapped up and held higher (barely). As this has been a leader in the past 2 weeks, watch is closely on Tuesday.
- NFLX: Still can't decide when it wants to break 82, whippy action today.
- YHOO: up 2.8% today and closed at the highs, if you've followed ET for the last week you had a great day today.
- FB: Facebook loves to crap on the market, down 2.7% today - still not ready to fill that gap.
- Z: Zillow has QUICKLY become a favorite stock here at ET. Up 4.5% on Monday, coming off a great day last Friday and a huge short interest, I really like Z long term if we can hold $24 this week.
Good luck this week, and check back here every night for more in-depth analysis!
The ET Team
The SPY's closed up just over 2% on Monday, at 139.13. This was a key range to hold a few weeks back, and proves to be yet again.
The QQQ's closed up 2.3% to 63.78 and would need to see 63 - 63.10 hold this week for a new trend to form to the upside.
Something to note for the rest of the week - After the June 4th lows were put in, we saw a jump up and hold for a few days. The same pattern has came up here for the SPYs and QQQs and, in my opinion, this is the BEST case scenario for the rest of the year. Consolidation here would be a great thing going in to December. So, my advice, is to keep pressing your winners and have defined stops. Days like today happen less than 5 times per year, but have defined exits and don't get too greedy.
A few short notes before we bring in some charts:
- XHB & XLF: Gapped up and held higher (barely). As this has been a leader in the past 2 weeks, watch is closely on Tuesday.
- NFLX: Still can't decide when it wants to break 82, whippy action today.
- YHOO: up 2.8% today and closed at the highs, if you've followed ET for the last week you had a great day today.
- FB: Facebook loves to crap on the market, down 2.7% today - still not ready to fill that gap.
- Z: Zillow has QUICKLY become a favorite stock here at ET. Up 4.5% on Monday, coming off a great day last Friday and a huge short interest, I really like Z long term if we can hold $24 this week.
Good luck this week, and check back here every night for more in-depth analysis!
The ET Team