- Overall Market -
In an effort to clean the blog up and make it easy to follow and read for our new members. We will keep focus on a hand full of market indicators and a few trending tickers. As the market continues settles in this week we will expand our focus and outlook.
SPY (S&P 500 spider) - Price action showing great strength for a rebound after our correction. Note that we are now consolidating in the upper trendline of our precious channel on the weekly. This is a good sign for overall health. Price may get choppy and we may yet trade lower from here. However, I am hopeful that any selling will be orderly and less panic stricken. Key price levels I am watching 270 to the low side and 275 to the high side. How price acts at these levels will be telling.
VIX - (volatility) During last week price settled into the previously mentioned 18 spot. I do not foresee us heading back to historically low volatility levels any time soon. We are currently above 20, continuing to show potential for some volatility trading in the next 30 days based on S&P option implied volatility. Over the coming weeks it would be nice to see this settle into around the 15 area. This will provide good trading opportunity for both sides of the market.
- Trend Watch -
APPL (apple) - looks to have recovered nicely. This may be a buying opportunity for me if price continues above 170 level.
AMD (Advanced Micro Devices) - Price action is showing a bear signal with potential geometry down to $10.50 level. The semiconductor space has gained momentum and this name is losing some steam. Keep on watch for a potential short.
XLE (Energy sector) - Price here looks to have potentially found a new base, we are well off recent highs. I will look to see if we hold this level. Should the sector find legs, some value buying in energy plays may open.
VALE - very bullish chart, pushing to new highs. Opportunity for both bulls and bears to day trade this ticker. Weekly is over bought, daily chart has room to move higher. Very interesting for intraday traders.
HL - (Helca Mining) as discussed in our video. I like this double bottom potential play. Keep on watch.
- Bitcoin -
Bitcoin is recovering in price, I expect to see some stock side sympathy with known block chain names. $GROW is showing some strength in recent session, keep this ticker on watch for a breakout.
- Low float watch -
$MOSY (Nice short term mometum, breakout watch)
$APHB (slowly grinding higher, needs heavy volume to breakout)
$BSPM (choppy but overall has seen recent strength)
- Closing Thoughts -
The market has been challenging this month. Trend following has seen its legs chopped and value buyers may have capitalized on a well needed pull back. Be patient and let the market settle in after a long weekend.
Continue to keep risk at the center of your focus for all trading activity. Cut losses and let winners trade. Blog will continue to become more robust as trading this week will provide some clues for market sentiment.
Stay Hungry and Humble Team, Thank you!