The indices continued their range-bound trading today. The early strength gave way to selling mid-morning. I'm not sure whether to blame it on Obama's economic press conference or technicals -- the Nasdaq approaching its 50-day moving average and the indices hitting last week's range tops. I suspect we will have more of this range trading through Wednesday's Fed decision.
Three sessions ago I said "My guess is that the bulls probably have two or three days of partying in AAPL before it hits the wall and is ripe for renewed selling..." It's been three days and the stock seems to be stalling right at the 50-day moving average. If I was still swing trading I'd have an order set to short it under today's low with a stop above today's high.
There's still a lot of focus on financials and they continue to look quite weak. BofA is still struggling with last Tuesday's gap down.
The financial sector chart looks almost identical to BofA's. Hard times...
J. Crew Group, Inc. (JCG) got an Obama pop last week but I think it's hitting the wall now.
No changes
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Down | Down | Down |
| Intermediate | Down | Down | Down |
| Short-term | Lat(+) | Lat(+) | Lat(+) |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
*** I'm simply using the indices' relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.
We have a similar trade on AAPL currently. Let's see what happens ;)
I have PUT on AAPL too. Waiting ;)
ps: Mike, i have question about XLF, maybe you can help me. We see on your charts new low in Financials Sector, but if we check SKF (http://stockcharts.com/h-sc/ui?s=skf) chart we didn't see new high. Is it magic? ;)