The market broke hard on Tuesday slamming most stocks and taking my short term
trading oscillator down to areas where powerful bounces happen often. And today was
a constructive though somewhat feeble snapback day though we should see more
upside until this snapback ends. Having said that, there are no powerful uptrends in
stocks currently which means mostly cash is best for now. Then again I announced
mostly cash here last Wednesday.
Let's start off with a chart of the S&P-500 that came down to its lower rising channel line
and its Fibonacci 23.6% retracement line. Should this area not hold then look to the
lower area near 1320.
My short term trading oscillator plunged yesterday and closed the day at one of the
lowest points this year and one of the lowest points in the last 5 years. A snapback
to the zero line is usually where this tool will gravitate after such a massive
plunge.
Leading stocks of this move Apple Inc. (AAPL) and Priceline.com (PCLN) seem to be
exhausted and due for a rest at this point. Let's start off with Apple inc. (AAPL) and its
parabolic like move.
Earnings due out after the bell tomorrow night on this next stock which happens to have
a fragmented Cup and Handle pattern that might yield higher prices if earnings are
much better than expected. Buy area would be a move above the Descending Channel
line after earnings if the gap up is not too large. I would not go all in initially as it could
tank the next day.
Retailing stocks stalled out which means there is no need to own them until
they get going again.
Precious metal stocks are not doing much right now either, so I'm avoiding until a trend
develops.
I hope to see you in the chat room Thursday and Friday and then back here Sunday
night.
Daniel J. Zanger
