Thursday, December 6th Recap
SPY showed its commitment early today as we put the lows in within the first 45 minutes of trading. We had some trouble grinding higher around the 141.80-141.90 level, but with help from the bulls tomorrow I'm hoping we can base above it to end the week above the 8 and 21-day MA. I also do like that the SPX index tested lows of 1405, but didn't even give 1400 a chance. Closing at the highs was very important, and hopefully we see follow-through into tomorrow.
One of the most important things that I can't stop stressing, both on my website as well as my Twitter feed, is that you MUST take notice to how certain sectors are reacting. When the market fell in November, the Homebuilders and Financials led the way. Now, XLU (the Utilities) and Financials are very strong. The XMEs seem to want higher, but not enough buyers to get them through the 42.80 level yet. Paying attention to sector rotation will get you into the higher probability trades, guaranteed.
Overall, I think tomorrow will be a slow grind higher, but nothing too crazy. It's good to see that the market didn't completely fall apart after Monday's massacre, and I still think a bullish trend can continue - but it will take time.
Here's our watch list for Friday. Enjoy!
PCLN
LULU
LNKD
MNST
WFC
FAS
FB
NFLX
SBUX
EBAY
WPRT
SI
X
XOM
One of the most important things that I can't stop stressing, both on my website as well as my Twitter feed, is that you MUST take notice to how certain sectors are reacting. When the market fell in November, the Homebuilders and Financials led the way. Now, XLU (the Utilities) and Financials are very strong. The XMEs seem to want higher, but not enough buyers to get them through the 42.80 level yet. Paying attention to sector rotation will get you into the higher probability trades, guaranteed.
Overall, I think tomorrow will be a slow grind higher, but nothing too crazy. It's good to see that the market didn't completely fall apart after Monday's massacre, and I still think a bullish trend can continue - but it will take time.
Here's our watch list for Friday. Enjoy!
PCLN
LULU
LNKD
MNST
WFC
FAS
FB
NFLX
SBUX
EBAY
WPRT
SI
X
XOM