Recap For 3/26/2014

Here is a video on the market along with some of the stocks that were mentioned in the recent days.

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

Stay The Course

The market continues to be on course toward its destination. For those that have been through bull/bear market cycle, then the course the market takes to reach its destination should be familiar.

Whether the recent shift to what some categorize them as ‘value’ stocks is the turn the market take to get to the top or not, only time will tell. But, as interests grow on stocks such as IBM, CAT, MMM, and others stable, high quality stocks, one must ask if this is the flight to quality?

Shifting

The market remains near the all time high territory while some of the recent high flyers starting to give way. Many that have been benefiting from this prolong market run up feel they are invincible. This is typical in a market that has gone so far without a major shakeout and near the climax phase.

Looking At Things

Do you always look at things as they are, or you look at things at what you (consciously or subconsciously) like to see?

No Surprises

The result from the vote in Crimea was to rejoin Russia. There was no major violence breakout in Ukraine and the US & EU sanction is not a backbreaker to Putin. Therefore, the market re-positions itself back to where it was prior to this Crimea uncertainty. The market still cannot find a reason to sell off other than headlines that cause these minor couple percentage dips.

Wait And See

As the Crimea vote approaches, the market brace itself by pulling back to avoid the possible onslaught of reactive selling. There shouldn’t be a big surprise the outcome of the vote is to join Russia. The uncertainty is not on what will be the voting result, but it is on what will happen after the vote. Will there be uprising internally between the Ukrainians and the pro-Russia backers in Ukraine? Will this uprising be an excuse for Russia to invade Ukraine and permanently station its troops inside of Crimea? These are the uncertainties that the market is pondering. What will be the consequence on the global market when the US and EU impose sanction on Russia (if they do carry out their bluff.) But in regardless what is going to take place, the market doesn’t appear to be in the 10-15% corrective mode that many of those market top callers been waiting for. Certainly the mood can change from the ‘wait and see’ to ‘sell everything then question later’ if some unexpected event occurs. But until there are signs that the market is in a full retreat, the market will continue to move higher from these minor dips until all those non-believers capitulate and buy this market at all cost.

No Letting Up

Today the market sold off and it appears to be more scary that it was. Looking at the 30 minutes intraday chart for the SP500 ETF, SPY, and you could see the reason why it feels that way. It essentially went down shortly after the open and there was no letting up along the way. It is down, down, down continuously. Similar for the DJIA ETF, DIA (click here to see the chart). So where is the market heading?

Morning Earnings Call

Tomorrow morning, some of the widely watched stocks will report their earnings before the market open. Here is a look at some price targets based on the options market pricing for HZNP, GOGO, and PLUG.

Taking Advantage

As the market continues to pull back, wait for the market to tell you it is safe to re-enter longs. Do not try to take advantage of this pull back by being a hero and go bargain hunting. The bargains you find could turn out to be a much better bargain if the pull back turns into a major correction.

Stocks Pulled Back

Last Thursday, many stocks that have run up show some sign of upside exhaustion. Therefore, today's pull back/consolidation on many of those stocks should not be unexpected or surprising. The market ended down modestly. Although there are stocks making extraordinary gains such as those in the fuel cell sector and the biotech sector, one should not get into an emotional chase mode after these price move. More importantly, don't be greedy if you caught one of those trades.

Stocks To Watch - 3/10/2014

Although the market appears to be setting up for a pull back, but there are still stocks with good setup for possible long. Here are three stocks; MMM, GE, and HK that might be worthwhile keeping an eye on for potential upside breakout.

The Long & The Short On AAPL

Recently, AAPL has not been an easy stock to put on any kind of swing trade. It was easy to trade when it was in a trend. When it is chopping around like it has been recently, it could be very frustrating.

Setting Up

After a huge run up since last Monday sell off, the market appears to be setting up for another pull back to digest the recent gains. Lot of stocks were showing short term upside exhaustion on Thursday. The prudent thing to do is to set the stops to protect the profits and prevent turning a winning trade into a losing trade. The market has not indicated it has made a top yet. Therefore, one should not be tempted to short this market when the pull back materializes.

Too Much Too Fast

Today the market opened with some strength but unable to really build on that opening strength. Similarly with many stocks, lot of them pulled back from their high of the day (HOD) and many of them even went below their opening price. It appears the recent run up is too much and too fast, and that made it very tempting for those that bought it at lower prices to take profits.

Stock Watch - 3/5/2014

Here is a brief update of the price actions for MS, GS, BAC, GM, F, MU, HIMX, BBRY, JCP, AMD, YHOO, HPQ, AAPL, AMZN, FB, TWTR.

Expect The Unexpected

Once again, the market reminded us to expect the unexpected. When the Russia and Ukraine conflict flared up last Friday, everyone was expecting the market to sell off big time when trading resume this week.

Stocks On The Watch - 3/2/2014

In the following video, a review of the price actions for NQ along with a look at possible swing long for MS, GS, GM & F.

Stock Watch -3/1/2014

The market ended the month of February with a new all time high for the SP500. A geo-political conflict is flaring up in Ukraine, and that could put a damper to the recent rally. By no means is this market indicating it is ready to roll over. There are still many stocks displaying good setup for possible further upside. Below are the charts for some of these stocks that might be of interest to keep an eye on for the coming days.