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Well, we got out post triple witching Monday out of the way today. It was choppy with some false moves and some fits and starts.
It could have been much worse, as Mondays of late have been ugly. The financials acted well, but AAPL got hit because of a few issues; A strike at Foxcon, the announcement that “only” five million iPhones were sold over the weekend, and maybe some doubts about how their new maps and GPS isn’t working properly. GOOG got a big bounce today, and it may have been attributed to the Apple maps issue. AAPL has 20 day moving average support around 680.
There still does seem to be a bid underneath this tape and dips are still being bought.
We saw triggers today in the following: FET, CTRX, TPLM, RVBD and BHI. I added FAS during trading hours today at 109 for a swing trade. I like the pullback in the financials lately and think they may go higher if the market improves this week.
The coal stocks acted poorly, as a few of the names we follow got some downgrades to neutral today. I like downgrades in a beaten group, as the conventional wisdom of practically all analysts is to downgrade at the bottom and issue strong buys near tops. We”‘ll see how this all pans out, but it will be a marathon not a sprint unless you are short term trading these names which is fine, because they have all evolved into great day trading stocks. I am still bullish although I do have less hair lately.
If we do rally hard I will be looking at the four horseman of the apocalypse to get long: FAS, TNA, TQQQ and ERX as a compliment to some of our longs. These may just be chat room calls as these move very fast.
On the currency front, the dollar is working on a bearish flag on its daily, so if that breaks down we could see a rally in the euro, which will be good for socks. The euro’s daily chart is flagging bullishly right now.
Everyone has an opinion on where things will go short term, but I still think we edge higher.
See you guys in the chat room tomorrow. It was slow on the chat today because the setups were hard to find.
Have a great night and I’ll see you in the morning.