AAPL Clobbered, S&P Touches Resistance, Plus: Workshop Webinar Tomorrow Night
We’re in the full flow of earnings and the SPY has touched its August highs before retreating just a few points. This is a critical point and the OVI isn’t exactly enthusiastic, but a breakout does seem likely. However, as I said yesterday, if Earnings Season is too scary for you there’s no shame in sitting this one out. There are a few stocks that look interesting though as we’ll see.
Announcement: My annual seminar is on 10th December at Heathrow. It’s always sold out, so tomorrow night (Thursday) at 7pm BST I’m holding a webinar so you can see what we’ll be covering. Click here to attend the webinar.
Ok, back to the charts:
SPY
I don’t like the outside bar – that’s when the current bar high is higher than the previous high, and the current bar low is lower than the previous low. Also the OVI is hardly brimming with enthusiasm, but one or two good earnings reports will send the index through resistance. The question will be … for how long will this run continue? Please be careful.
QQQ
The Nasdaq already broke its recent highs on the back of strong performances by leading tech stocks. The OVI has been just above water for a few days now, but I still can’t see this being a long term bull run. In the meantime though, trade what you see, or wait patiently!
DIA
Similar to the S&P though the OVI has really been trying here!
AAPL
Cup and Handle pattern here. We’re through earnings and if more tech stocks report favourably this could have further to run. Keep your stops tight in this market.
Update: AAPL missed its earnings estimates and has been clobbered. Hence the wisdom of waiting until after earnings!
AMZN
Earnings next week and this is looking very constructive, with a cup and handle pattern together with a positive OVI. I’ve said a number of times this year that I like the prospects for AMZN if the markets are going to be supportive. I don’t think AMZN can go it alone in the face of a bearish Nasdaq, but while the Nasdaq is pushing upwards, I do think AMZN will be one of its key drivers (along with AAPL).
MCD
Forming a channel, earnings on Friday. On a weekly chart this looks like a big flag. But you’re going to have to wait for a breakout here. The market looks undecided on this but when earnings does come I’m anticipating a move of at least $6 either way. Probably not that helpful but I’ve added MCD to our OVI-10-minute charts on the Private Traders Club because its OVI is looking pretty fluid and I’m anticipating this channel being broken decisively one way or another in the next couple of weeks.
XOM
Currently the biggest company in the world! See how the OVI was positive (even only just) as it broke out of its two-month sideways channel. Earnings is next week and I’d like to see it consolidating in the meantime.
GS
Could it be that GS wants to break out? The OVI is neutral – but that’s better than the negative it’s been in from April to September!
BAC
Similar story for BAC, though its OVI is still negative. Still has a lot to prove and we’re still in a downtrend with this one, but at some point one of three things will happen. It could continue to fall. It could bump along sideways for a while; or it could reverse and start a new uptrend of sorts. It’s difficult to enthuse about the wider market’s prospects in the medium term, but you do have to trade what you see. Right now, this one is not ready, but keep your eye on it.
Again I must emphasise, if you’re going to trade during earnings season, you MUST check to see if your stock is reporting at time you’re considering your trade. For earnings news there are two links – you can simply change the stock ticker within the URL address or on the web page itself:
http://finance.yahoo.com/q/ce?s=AAPL+Company+Events
http://www.earnings.com/company.asp?client=cb&ticker=aapl (scroll down to the Earnings Releases header bar)
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Tomorrow’s Webinar
As mentioned, tomorrow’s webinar will introduce my LIVE workshop on 10th December. Please click here to attend the webinar where I’ll preview the live event.
All the best
Guy
