The Anticipated New High For DJI

The game the market play is a very simple game of money transfer, transferring money from one pocket to another pocket. The process it uses to play this game is similar to the wholesale/retail business, buy the stocks at wholesale prices and sell it at retail prices.

Today, the DJI closed at another new 52 weeks/multi-years high. Just as I have stated in my 2/20/23 posting that another new high for the DJI is expected. The difference between today’s new 52 weeks high from the previous high is a lack of confirmation from the other market indices. Be cautious and don’t get trapped by this market topping process.

Here is a video reviewing today's market price actions.



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

Disclosure: Long SPY PUT

Stock Watch For Week Of 2/25/2013

Here are the charts for some stocks/ETF to watch for the week of 2/25/2013.

(click on the chart to get an enlarged view)

AAPL



GOOG



FB



BBRY



DDD



GLD




UNG

A Reminder From The Market - Featuring AAPL

It has been a while since the market has experienced a down day of more than 1%. Today, lot of stocks reversed with big losses. This bring out all those talking heads that been proclaiming the market is overdue for a correction. Whether or not today's price action is the beginning of a correction, it should at least serve as a reminder to all the market participants that it can get ugly when this market reverse direction.

Based on the Dow Theory and the recent confirmed 52 weeks high for the DJI, the DJI could make at least one more new high before it tops out. How deep and how long this pullback will last? No one know. Just watch the price action and those resistance turned support levels, and trade what you see.

Here is a brief video reviewing the latest price action for AAPL.



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

Another New High For The Market – Featuring FB

Today, the market made another confirmed high with the DJI and the SP500 closed at a new 52 weeks high, while the DJT and the Russell 2000 closed at another new all time high. The only index that is still lagging behind is the Nasdaq 100. While all these market indices are making new high, the negative divergence between the MACD and the indices continue to persist.

Although there is a high level of anticipation of a pullback or a correction, the market continues to frustrate the anxious bears and the sideline dip buyers. Base on historical market behaviors, the long awaited pullback will not occur until those frustrated dip buyers lose their patience waiting for a pullback and chase the market by diving in at all cost. In the meantime, there are stocks that have the potential to move higher base on its own technical price structure. One such stock is FB.

Here is a video briefly summarize the latest market move, and a technical look at the price action for FB.



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

Disclosure: Long FB

AAPL Next Move

AAPL has been trading between the price of 435-485 for nearly 2 months. The price pattern doesn't appear to be starting to new trend. The weekly chart below shows the continuation of the down trend pattern that has been in since it reached the 705 high in September, 2012.



View the video to see the near term potential price levels.



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

You Have Been Warned

Today, you have been warned again by the market that the party is about to be over. If you decide to join the party at this time, don't plan on staying long, as this party can come to an end without further notice.

The DJI closed at another multi-year high today at 14,018.70 along with the SP500 and the Russell 2000. But the DJT failed to confirm the DJI new closing high. This is another sign from the market telling you to be defensive; reduce your position size and tighten your stops!

click on the chart to enlarge

DJI

DJT

 

Still Watching For Market Top

The market continues to hover near the all time high territory. The DJT and the Russell 2000 continue to make new all time high. There are signs that the market is getting ready to pullback a bit, but no sign of a market top yet. One of the leading sector that been pushing this market up has been the financial and they continue to hold the higher ground. There is negative MACD divergence showing, this could be the first sign to warn the market participants to be cautious.

Here is a video reviewing the price actions and looking at some possible near term price levels for the market indices SPX, DJI, DJT, NDX, RUT, and some financial stocks JPM, C, BAC, MS, and GS.

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

Stock Review - 2/3/2013

Here is a video reviewing some PC related semiconductor stocks, INTC, AMD & MU, along with some non-tech stocks, WU, CAR, CHK, UNG & KOL.



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

Stock Review - 2/2/2013

Here is a look at MSFT, GOOG, GS and FB.



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

Disclosure: Long FB

The Market Could Be Topping – 2/1/2013

Today the DJ Industrial closed above 14,000 at 14,009.80. The last time it has closed above 14,000 was on October 12, 2007 at 14,093.08. Obviously, there were many fanfares from the media and from the talking heads on this milestone. But what was missing today and on January 29, 2013 is the lack of mentioning about the failure of the DJ Transportation index making a new closing high. To the Dow Theory followers, these non-confirmations are the sign of a market forming its top or it has topped. From today’s close, the DJ Industrial is 154.73 points from its all time high. The market most likely will not top out until after the DJ Industrial has closed above the October 9, 2007 high of 14,164.53.

Here is an updated chart of the major indices:

(Click on the chart to enlarge)

While the market waits for the DJI new all time high, be defensive. The market could pullback and lures some fresh money into the market before it tops out, or it could simply run up to a new non-confirmed all time high next week and start a new down trend.