Wednesday, November 21st Recap
After yesterday's low-volume digestion, today's tape was very bullish. I came in to today planning on another low-volume day and not planning on seeing much. Surprisingly, however, we noticed a few stocks that have been on our watch list that sparked some interest. First off, Facebook came shooting out of the gate with consolidation around $24. For those of you wishing to add, this was your spot to add (with a stop around $23.40). Also, Zillow (Z) and Groupon (GRPN) were on our watch list last night as very strong potential risk/reward plays. I'm still very bullish on Z and can see GRPN in our portfolio here and there depending on volume.
AAPL had a rather slow day, with testing both ends of the broadening formation and closing near the apex. I think a retest of 555 is still bullish, to entice a few new buyers. If 555 doesn't hold however, 545 will be tested - which MUST hold. If 545 fails, a potential gap fill is in order down to 530. Regardless, I am staying out of AAPL for now. A break below 545 would get me short and a break above 570 I'd most likely be getting long with a stop around 562.
The SPYs had a slow day and traded a very tight range today. A high of 139.57 and a low of 139.03 - closing at 139.45. Another day of digestion keeps me bullish, and I still believe that 138.80 is key support. On the SPX chart, I think 1400 remains our target next week, with a retest of the 200day moving average (1380).
A few notes from today:
- FB: Great to see them hold up today on higher volume. This gap has the potential to get filled early next week.
- Z: Closed great and shorts are getting squeezed left and right. Keep on your radar especially around 28, there is a gap to fill from 28 to 31, then 34.
- NFLX: same story, different day. Holding higher on lower volume. It is just going to take a high-volume day to get this one going.
- DIS: We had DIS on here a few days ago to fill its gap, which it did today failed at resistance ($49).
Also, remember that Friday's trading session ends at 1:00 Eastern Time!
More charts below! If you have any questions or comments please feel free to let let me know.
Good luck this week, and check back here every night for more in-depth analysis!
The ET Team
AAPL had a rather slow day, with testing both ends of the broadening formation and closing near the apex. I think a retest of 555 is still bullish, to entice a few new buyers. If 555 doesn't hold however, 545 will be tested - which MUST hold. If 545 fails, a potential gap fill is in order down to 530. Regardless, I am staying out of AAPL for now. A break below 545 would get me short and a break above 570 I'd most likely be getting long with a stop around 562.
The SPYs had a slow day and traded a very tight range today. A high of 139.57 and a low of 139.03 - closing at 139.45. Another day of digestion keeps me bullish, and I still believe that 138.80 is key support. On the SPX chart, I think 1400 remains our target next week, with a retest of the 200day moving average (1380).
A few notes from today:
- FB: Great to see them hold up today on higher volume. This gap has the potential to get filled early next week.
- Z: Closed great and shorts are getting squeezed left and right. Keep on your radar especially around 28, there is a gap to fill from 28 to 31, then 34.
- NFLX: same story, different day. Holding higher on lower volume. It is just going to take a high-volume day to get this one going.
- DIS: We had DIS on here a few days ago to fill its gap, which it did today failed at resistance ($49).
Also, remember that Friday's trading session ends at 1:00 Eastern Time!
More charts below! If you have any questions or comments please feel free to let let me know.
Good luck this week, and check back here every night for more in-depth analysis!
The ET Team