The bears couldn't hold the market down and the bulls have returned with vigor, ripping the market back into the uptrend and nearing new highs. It took very few sessions to erase the entire downtrend and soon it looks like it will be a distant memory. Or will it? Is the all clear sign lit in neon or are there still spots of worry? the GDP number looked good, but once again - why are wages stagnant? How can this bull market continue with the great majority of Americans losing ground financially? Is this purely a funny money rally? We shall see what the election brings. Stay tuned.
The sell-off didn't last and got broken with a big green candle, pushing the S&P 500 above the 50 DMA again, resuiming the uptrend/bull-market. Today there is a little digestion/side-ways movement that actually looks quite healthy for the market. So, the big question is - what now? Will we resume the run and reach new highs?
The energy and speed that the market snapped off the bottom of the sell-off tell me that unless we get bad news in the short term, we are likely to see new highs soon. The bears simply couldn't hold the market down for more than a week. That's a bad sign if you are short this market. I think more green is ahead.
After a recent vicious sell-off following a terrible earnings report, the stock is trying to recover and heads north towards the 50 DMA. Can the stock get above this moving average? Nothing about this chart looks bullish, I can say that and I won't change my thinking at all until McDonald's gets above that blue line in the sand at 93. However, if the stock fails at the 50, a re-test of 90 will happen.
If you are long the stock, I'd hold. If you are looking to put new money in - look for the failure at 93 and watch for lower pricing.
Amazon lost more money than expected this most recent quarter in results posted after the bell yesterday. Investors are punishing the stock to the tune of a 7% drop this morning. The question begs: how long will Bezos play this game of making no money at Amazon in attempts to hurt his competition and actually begin booking profits for investors? Another way to ask it - why would anyone own Amazon stock? No yield, no profits. I don't like this stock. At all.
Apple is higher in early trading, moving to new highs on nice volume. The bears couldn't hold this stock down after the excellent earnings report and upbeat view moving forward and the bulls have pushed it too all-time highs. What next? Will the stock continue to run? We shall see.
The Market is going up and down like a yo-yo, a roller-coaster if you will. The S&P 500 rebounded from 183 and retook the 200 DMA, but suffered a negative trading session today. Looking at the chart - the index is stuck between the moving averages. The one it 'breaks' first will tell a lot about where we are going. If we break the 50 DMA to the upside, it's most likely new highs. However, if we re-test and re-break the 200 DMA to the downside - look out below. We are almost exactly in the middle of the range, so I'm not going to play reader of the crystal ball and guess. We need more information.
Tomorrow and Friday's trading sessions should give a lot more of that needed information. Do we rally tomorrow or fade towards the 200 DMA? Watch 190 on SPY.
The recent descent of oil seemed to have abated and in fact, reversed, getting close to 85 intraday a few sessions back. However, today brings fresh selling and oil pushed down below 82 once again. With this second test, will the 80 range hold? What does it mean if 80 does NOT hold? Can this bull market continue with crashing energy prices?