November 16th Recap
As we all well an know, the market had a very keen liking to Boehner's word's on Friday. "I believe we can do this and avert the fiscal cliff," Boehner told reporters on Friday. This appears to have eased Wall Street's worries, at least in the short term. The S&P index closed at 1359.88 on Friday, with the SPY's jumping over 1% right after Boehner's announcement. The bulls have been looking for this reversal since the beginning of October, and the question everyone is thinking over the weekend is, "Is this day 1 of the reversal?"
The answer to this, in my opinion, is let time decide if it is or not. As active traders we are trading price levels, not media releases. Let price tell you if we are out of this "correction." That being said, I believe it is a good idea to test some longs next week. Know your levels (as always) and I think this may be the first week in a long time where I'll be able to hold longs overnight. If the SPY's can't hold on to 135.90, however, we need to re-adjust and go back to our tactical approach.
The biggest talk of the day was Apple, yet again. Those of us that trade Apple on a daily basis saw an INCREDIBLE first 2 hours of trading. The high within the first minute was 526.48 and within the next 2 hours we saw the biggest dip I have seen since I have been trading - down to 505.75 at 10:30AM CST (crazy how it works like that, isn't it). Then, within one hour and 12 minutes, at 11:42AM, we see 530.00 printed. For the bulls that have been begging for a reversal, this was it. Apple ended up closing higher than expected - at 527.68. Many thought a 520 or 525 pin was a sure thing. Keep an eye on the 520-525 area as that will be major support come Monday; if it holds I would consider today day 1 of the reversal. Keep in mind the 8-day SMA is at 539.84 - which will be its first test of resistance. Apple has officially had 8 red weeks in a row, will next week be the first green one?
Other notable stocks that we were watching last week were NFLX, YHOO, LNKD, FSLR, and the XME's and DJT's. Netflix and Yahoo are still bull flagging and waiting to pop out of their respective resistance levels. While LinkedIn has proved for the last 4 days to be "best in breed." First Solar has been great for day-trades, but hoping it can hold support into next week. The XME's were destroyed under $42, and the ET team had that spot on as it rested at $40 toward the end of the week. The transports are also a HUGE play next week, and can be very telling of where the market wants to go. For now, the transports are at support, hopefully the bulls can push it back through 15,000.
We will be doing a bunch of research over the weekend for a few more stocks to put on our watch list. Most notably, Facebook has been on everyone's buy list and is about to fill a gap. Check back on Sunday for more charts!
Have a good weekend,
The ET Team
The answer to this, in my opinion, is let time decide if it is or not. As active traders we are trading price levels, not media releases. Let price tell you if we are out of this "correction." That being said, I believe it is a good idea to test some longs next week. Know your levels (as always) and I think this may be the first week in a long time where I'll be able to hold longs overnight. If the SPY's can't hold on to 135.90, however, we need to re-adjust and go back to our tactical approach.
The biggest talk of the day was Apple, yet again. Those of us that trade Apple on a daily basis saw an INCREDIBLE first 2 hours of trading. The high within the first minute was 526.48 and within the next 2 hours we saw the biggest dip I have seen since I have been trading - down to 505.75 at 10:30AM CST (crazy how it works like that, isn't it). Then, within one hour and 12 minutes, at 11:42AM, we see 530.00 printed. For the bulls that have been begging for a reversal, this was it. Apple ended up closing higher than expected - at 527.68. Many thought a 520 or 525 pin was a sure thing. Keep an eye on the 520-525 area as that will be major support come Monday; if it holds I would consider today day 1 of the reversal. Keep in mind the 8-day SMA is at 539.84 - which will be its first test of resistance. Apple has officially had 8 red weeks in a row, will next week be the first green one?
Other notable stocks that we were watching last week were NFLX, YHOO, LNKD, FSLR, and the XME's and DJT's. Netflix and Yahoo are still bull flagging and waiting to pop out of their respective resistance levels. While LinkedIn has proved for the last 4 days to be "best in breed." First Solar has been great for day-trades, but hoping it can hold support into next week. The XME's were destroyed under $42, and the ET team had that spot on as it rested at $40 toward the end of the week. The transports are also a HUGE play next week, and can be very telling of where the market wants to go. For now, the transports are at support, hopefully the bulls can push it back through 15,000.
We will be doing a bunch of research over the weekend for a few more stocks to put on our watch list. Most notably, Facebook has been on everyone's buy list and is about to fill a gap. Check back on Sunday for more charts!
Have a good weekend,
The ET Team