Support held for the $SPX last week, as both lateral support (white line) and the 20 day simple moving average held. The Nazzy $QQQ, and Russell 2000 $IWM also held 20 day support lines. The DOW ($DJIA) held its 10 day moving average. Was that it? Anyone’s guess, but dip buyers did indeed step up on Thursday and Friday.
Bernanke took the stage and some people said he spoke from both sides of his mouth. What’s a good central planner to do? Tell the truth? Nah. There’s an epic bubble to protect.
Kuroda and the planners in Japan had to cut short their Fendi bag purchase marathon on Rodeo Drive as the Nikkei ($NKY) flopped a cool 7.5% last week in one day. It was up 40% this year alone. It will move higher again and I nibbled more $DXJ and $YCS. If you missed the move, this is probably a good spot to nibble.
Probably one of the best acting stocks last week, considering the tape, was $AAPL. Strictly on a chart basis, it looks interesting here and I still see a potentially bullish inverse head and shoulder pattern. It’s all about this right shoulder and whether it will validate or not. I will most likely give it a shot long for a trade over 448.
Even though last week was bit crazy, there are still some very nice longs AND shorts setting up.
Come by for FREE TRIAL , so you can get a feel for what I’m doing next week.
Subscriber Performance for May.
Have a great long weekend and good luck next week.