Quite how a western government system can be allowed to “shut down” is quite beyond me, but I guess it makes life interesting.
Unfortunately it can also wreak havoc with otherwise sound open positions that then get whipsawed and stopped out. Such are the vagueries of politics’ impact on the markets.
Last week we talked about the head and shoulders that didn’t happen on the major indices, but that the S&P and the Dow were looking a bit fragile. This has played out with further falls while the Nasdaq has continued to hold firm.
SPY
Fulfilled last week’s suggestion that it looked weak.
DIA
Ditto with the S&P.
QQQ
Continues to look strong.
Ultimately the powers that be will sort out the shutdown and then we’re into earnings season. I mentioned things looked like a mixed bag right now and that seems a fair assessment.
AMZN
Still looks interesting and solid. Waiting for the breakout above recent highs.
BIDU
Looking strong – would be nice if it could move sideways for a while to give another chance to jump on board.
FB
You can only ignore this for so long. From a pure charting point of view FB has behaved impressively. It’s one of those that you’ll want to pick up after a decent retracement. Next earnings report will be interesting as it’s currently trialling a new advertising strategy. If advertisers are getting bang for their buck, then FB could go on another tear. Time will tell.
FMC
Could do with more positive volume but a nice shape to the chart.
GOOG
This chart looks precarious (head and shoulders) but the company is strong. We need a sign either way!
GS
Doji doesn’t quite fit the 20-day rule, and the chart does look weak, but at some point the stock will come roaring back.
JPM
A sloping head and shoulders here. If it slides towards $50 and the OVI turns negative then we could be in for something interesting to the downside. But $50 has proved strong support so far.
NFLX
Still ok if it can hold $300.
TSLA
Still on a massive tear, but the fundamentals don’t back this up. At some point the two have to match up otherwise the chart will give way like an avalanche. Smells like a lot of retail sentimentality has been buying up this electric car stock while some institutions have been reducing their positions in it.
XOM
Doji at a similar level to the one in April. XOM has had a nightmare couple of months and there could be some downside still to come with this downward sloping head and shoulders pattern. But the Doji could provide some temporary relief if it breaks its own high. That said, if it does that, treat it as a quick in and out by taking profits quickly.
YHOO
One of the best performers on every level. Look for a chance to get into YHOO when the chart gives you an opportunity but do not chase it. A big market retracement would be the best bet, until then this stock continues to look strong.
More soon.
All the best
Guy