After a failed head and shoulders pattern, the broader markets broke out and sent our bull picks soaring while deflating our potential shorts. The tech sector remains the strongest and we will continue to watch tech names like the infamous AAPL which has broken out above its prior highs. Keep in mind we are still in the midst of earnings season.
A spinning top candlestick formation on the weekly bar of the S&P500 shows the sideways action we faced last week. As stated in the prior week’s forecast, volume is quite lackluster and we are seeing a strictly news driven market.The weekly chart is quite messy and the price patterns forming are weak as well, with the exception of the head and shoulder formations on the S&P, Dow and Russell. The NASDAQ could be in a H&S formation if you look…
In the week ahead look for these news announcements to act as potential market movers…· Tues: Producer Price Index 8:30 AM ET· Tues: Retail Sales 8:30 AM ET· Weds: Consumer Price Index 8:30 AM ET· Weds: Empire State Manufacturing Survey 8:30 AM ET· Weds: Industrial Production 9:15 AM ET· Thurs: Jobless Claims 8:30 AM ET· Fri: Housing Starts 8:30 AM ET OPTIONS EXPIRY WEEK! News, News, News, and lots of it will be the talk of the media this week.…
Sideways market action yields less momentum in individual stocks. We have not seen very many stocks giving quality entry signals due to this summer slowdown and decrease in volume. Earnings season is here, kicked off by aluminum manufacture Alcoa (AA) which reported its 3rd consecutive quarterly loss. Regardless, these are some of the stocks we are watching in the week ahead. LongICUI – Strong trend, waiting consolidation of the forming bull flag pattern.MMSI – Awaiting retest of last week’s breakout,…
The markets put in a Doji for the month of June, not surprising after one of the largest bear market rallies ever. Small Cap and Tech acted relatively strong this past month. We will keep an eye on the SPY, DIA, QQQQ, and IWM volume as we anticipate a drift sideways or lower from here. If we do breakout, we will look to a spike in volume to confirm this rally. Remember your timeframe; a candle is not formed until…
We saw no follow thru this week as a hammer was put in on week 26 of the S&P500 chart. Until the tail of week 26’s candle is broken to the downside we remain a sideways bias and believe that the bottom has been put in for the year. The summer slowdown is in full force and we should continue to see sideways trading.
In the week ahead look for these news announcements to act as potential market movers…· Weds: EIA Petroleum Status Report 10:30 AM ET· Thurs: Jobless Claims 8:30 AM ET· Thurs: EIA Natural Gas Report 10:30 AM ET· Fri: International Trade 8:30 AM ET· Fri: Consumer Sentiment 9:55 AM ET Timothy Geithner Speaks Friday July 10 at 10:00 AM ET. Not much is happening in the week following the holiday. Often times we find trading following a 3-day weekend to be…
Most of last week’s stocks to watch pulled back nicely to support forming decent entry points, with the exception of RDY which took off and hasn’t looked back. The tech plays of GOOG, AMZN, and AAPL have begun trickling lower along with the NASDAQ. AMZN, while providing a nice 5 point rally, is currently acting relatively weak to the broader market so we will make note and continue watching its price action. It’s important to remember when trading that you…