Some wobbles in the markets over the last couple of days with Silver in particular taking a pounding, Gold and Oil looking vulnerable too. World events don’t seem to have had much effect as we look at the open today.
QQQ
The QQQ is down today as we speak but had been forming a cup and handle pattern with a still-just-positive OVI. We’d still need to break 55.40+ to the upside on this but right now many leading stocks rolling over.
Stock Highlights
AAPL
AAPL hasn’t broken the flag highs yet but the flag still remains in play. The OVI is positive but only just. The entire pattern still looks constructive though and we’re still looking for a break of the recent flag high.
BAC
Last time I said “This flag is going on a bit and there’s the gap that may need to be filled, so this is just an “observe” for now“. And it looks like the gap is going to be filled with the OVI breaking into positive territory. It could be a temporary thing but the point of showing the chart again is to demonstrate how good our method is – no breakout, no losses.
CVX
Holding the rising trendline for now and the OVI is still positive. Down today but definitely one to watch.
GDI
Bull flag with spiking OVI though the OVI on this stock isn’t particularly liquid as you can see as it predominantly forms a horizontal line along its zero line.
ORCL
Nice break of the recent bull flag and we could do with another consolidation here while the OVI is so postive.
PCLN
This stock needs a rest! But when’s that going to happen? Not sure but today’s action is to the downside and the OVI turned negative yesterday … let’s see if this is just a blip.
QCOM
Bull flag forming as part of a cup and handle … currently down today but keep on your radar.
RIMM
Last time we talked about a potential gap fill around $58 … it never got there and then got downgraded again by key analysts. Again, it’s not just about the indicators, it’s about the method AND the indicators. Our method is to act on breakouts … RIMM did not break to the upside, therefore there was never a trade here. So the method protected you.
Finally, it’s worth commenting on some world events and their potential effects on the markets. The big news of Bin Laden’s demise has barely dented the markets, which may surprise some observers, but you can summize that the wider threat at large still remains. It is, however, news that will have clear political ramifications in the US as President Obama will be forever associated with the success of the mission and the change in strategy that made it possible. All this said, the elections are more than a year away and we all know “a week is a long time in politics”, but many Obama detractors will have had some of their arguments weakened at this time, and the odds of second term are greatly heightened even this far away from the next Presidential election.
On a lighter note, in the UK, the big news is of sustained summer-like sunshine throughout April and now into May, plus the Royal Wedding, which I was very fortunate to attend, even being invited impromtu onto the balcony, hence my somewhat casual attire.
More soon.
All the best
Guy
