High Alert From The Rest Of The Market

After the Memorial Holiday, the U.S. market resume trading and it opened strongly with the DJIA up more than 200 points at one time, then the market started to retreat and the DJI gave back half of its gain to close at another all time high at 15409.40, +106.30 for the day. The SP500, Nasdaq 100, Russell 2000, and the DJT closed with a gain for the day as well, but they failed to close at a new high.

MOMO Stock Review - 5/27/2013

Here is a look at where the price of AAPL, GOOG, AMZN, NFLX, BBRY and GS might be headed.

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Natural Gas Could Be Burning Bright

The natural gas ETF, UNG appears to be setting up to break the recent high of 24.09 level. If it does breakout, then the upside price target is between 28-30 using the measured move from the developing cup & handle pattern started in October of 2012.

(click on the chart to get an enlarge view)

Stock Market Review - 5/25/2013

The market did a reversal last Wednesday and gave the market participants a spook. Before one conclude that the market has topped out, let's remind ourselves that the market top out is a process and it is not an event. From the various indices and the market breadth indicators, they have not indicate the market has topped out. Until the market has show sign that the dip buyers are back in and the current pullback has ended, be cautious and be patient.

Deja Vu

Really! This time is different?

Check these past post, "How Long Can This Last?" and "Here's When It Got Started ... SP500 1250" then ask yourself is this time any different than the past...Deja vu!

Possible Trend Change For AAPL

If one compare the current AAPL price chart to the chart posted in "Chronicle Of A Trend Change", one can see many similarities. If AAPL breaks above 445 and move to test the resistance near 470, then it will have complete the higher-high, higher low pattern that define an uptrend.

AAPL Daily Price Chart
(click on the chart to get an enlarge view)

Levels To Watch For AAPL

AAPL has displayed some bullish price action and could be setting up to reverse to an uptrend. The near term key resistance level for AAPL is 445. If it can break above the 445 level, then look for it to possibly move up to 465/470 level. An inverted head & shoulder price pattern will be formed if AAPL move above the 470 level, and the projected measure move price target from this price pattern is near the 555.

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Disclosure: Long AAPL

Stock Watch - 5/19/2013

In this video, a review on some stocks that could have upside price action in the coming week.



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Disclosure: No position.

Are We There Yet?

As the market continue to climb higher, many market participants are preoccupied on waiting for the correction to appear. While these participants wait and ponder on when will this market will correct, they are missing the opportunity to long this market. Those that are focused on riding this market up are not asking "When will the overdue market correction appear?". Instead, they are asking "Are we there yet? Has the market reached the top?"

Here are some observations to help those that are wonder whether the market has reached the top. From the chart below, one can easily see the SP500, DJ Industrial 30, Dow Jones Transportation, Nasdaq 100,

Where Will They Go?

Here is a video reviewing the price action for AAPL GOOG AMZN NFLX BBRY & ANGI, and where they might go. GS is also being covered in this video.

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Here is a weekly chart using the measured move to project a possible price target of 177 for GS.



Disclosure: Long NFLX & BBRY call spread.

MOMO Stocks Review - 5/12/2013

Here is a video reviewing the price actions and potential price levels for AAPL, GOOG, AMZN, NFLX, BBRY, and ANGI.

Click here to view the video if you do not see a video player on your screen.



To find out what price levels the market might be targeted, check out Until The Market Change Course.

Disclosure: Long NFLX & ANGI, long BBRY call spread.

Until The Market Change Course

The market continues its upward march. After showing sign of a possible non-confirmed high might be in the making, it reaffirms its desire to move to higher level. The small caps Russell 2000 index is once again making new high along with the SP500 and the DJIA, even the DJT participated with the recent new high party until the last trading session, May 11, 2013. On May 11, the DJT failed to make a new high while all other major market indices made new high. This failure could be simply another temporary divergence between the DJIA and the DJT or it could be the final warning from the Dow Theory to alert us to prepare for the imminent market top.

As the market has displayed time and time again, those that try to call the market top will be reminded who is the boss and will get punished, and those that exercise diligence and patience on listening to what the market has to say will be rewarded. At the present time, the market continues to punish those going against the prevalent trend. Let’s remind ourselves, the market topping out is a process and not an event, and it does not just reverse itself on a dime. The market has to complete the process of money transfer and risk transfer before it changes course. This transfer process takes time and as this process progress, the attuned students of the market will see this process play out. Until the market start showing signs that it is in the final stage of this transfer process, one should continue to ride the trend cautiously or head to the sideline and observe.

Here is a video that review the recent market price action and highlight some of the intermediate key levels the market might be targeted.

Click here to view the video if you do not see a video player on your screen.

Has AAPL Made A Bottom?

From the recent Apple stock price action, it appears an intermediate bottom for its stock price might have been made. This bottom might be due to Apple’s recent stock repurchase announcement.

After Apple announced its earnings for the second quarter of fiscal 2013, it announced an increase to its stock repurchasing program from $10 billion to $60 billion.

Apple reported record revenue for the quarter, but the quarterly net profit of $9.5 billion ($10.09 per diluted share) was below a year-ago same quarter result of $11.6 billion ($12.30 per diluted share). In addition, the gross margin was 37.5 percent compared to 47.4 percent in the year-ago quarter. Apple’s stock price would have reacted in an adversely negative fashion with these financial results. Instead, the stock price held above the recent low of $385.10 made on April 19, 2013. More importantly, Apple stock price has increased more than 10% since the reporting of second quarter financial results. Its stock price went from $406.13 at the 4/23/13 close to 5/2/13 closing price of $449.92. The reason Apple stock price did not reacted negatively could due to the possible price support from its $60 billion stock repurchase program.

From a technical perspective, the monthly stock price chart show a dragonfly doji candle formed for the month of April. This type of candle typically signify a near term price reversal, and an intermediate low for the stock price.

Click chart to enlarge

Usually, a dragonfly doji candle is accompanied by capitulation selling. But for AAPL, there was no increase in trading volume for the month of April. The absence of increasing volume associated with the dragonfly doji could mislead some of the AAPL bears to remain short while they wait for the capitulation to occur. This misread from those AAPL bears could turn out to be very painful and costly if the April dragonfly doji candle reflects the true price action.

Click here to see possible trading price levels for AAPL.

Disclosure: Long AAPL

Post Earnings Review - 5/4/2013

Here is a video reviewing the price actions for the following stocks that have recently posted their quarterly earnings.

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