Indexes pushed higher on solid earnings from the past week and today. Apple and Amazon both had solid earnings reports and talked about how they see demand accelerating. It’s important to note that today both AAPL and AMZN broke above their highs from those earnings calls last week. This means we are seeing continued buying in the leaders. AMD issued guidance and earnings that was ok but not stellar the stock opened down but rebounded later in the day. The semiconductor index broke out above the upper channel for the first time since it was formed (see below). It is impressive that even bad earnings reports are seeing their stocks go higher. Usually this happens when expectations are completely washed out which seems to be the case. I am not suggesting we are heading into a breakaway bull market. What I am saying is that it is getting easier for us to have winning trades now. Breakouts are working. Dips are being bought. All of the indexes are currently above their average price from the march peak. This is bullish. Couple this with the indexes making higher highs and lower lows and we have a potential bottom. I think it is important to note that this recent rally is very different than the previous one in march. Technically speaking we have had 4 higher lower in this recent bounce which is very different. Essentially higher lows mark dip buying. We had zero higher lows on the daily indexes during march. That implies short covering versus real buying. For now we are getting overbought as noted in the RSI on the charts below but we can work that off. For now I continue to be a dip buyer. You will see several additions to the newsletter from the trading community below. We are focusing on buying stocks coming out of bases on pullbacks and its working. A letter went out earlier today letting newsletter members know that the trading room has open enrollment for the next 5 days and then enrollment will close for an undetermined period of time. Let’s get to it!
📈STOCKS HIGHER! SOLID EARNINGS!
📈STOCKS HIGHER! SOLID EARNINGS!
📈STOCKS HIGHER! SOLID EARNINGS!
Indexes pushed higher on solid earnings from the past week and today. Apple and Amazon both had solid earnings reports and talked about how they see demand accelerating. It’s important to note that today both AAPL and AMZN broke above their highs from those earnings calls last week. This means we are seeing continued buying in the leaders. AMD issued guidance and earnings that was ok but not stellar the stock opened down but rebounded later in the day. The semiconductor index broke out above the upper channel for the first time since it was formed (see below). It is impressive that even bad earnings reports are seeing their stocks go higher. Usually this happens when expectations are completely washed out which seems to be the case. I am not suggesting we are heading into a breakaway bull market. What I am saying is that it is getting easier for us to have winning trades now. Breakouts are working. Dips are being bought. All of the indexes are currently above their average price from the march peak. This is bullish. Couple this with the indexes making higher highs and lower lows and we have a potential bottom. I think it is important to note that this recent rally is very different than the previous one in march. Technically speaking we have had 4 higher lower in this recent bounce which is very different. Essentially higher lows mark dip buying. We had zero higher lows on the daily indexes during march. That implies short covering versus real buying. For now we are getting overbought as noted in the RSI on the charts below but we can work that off. For now I continue to be a dip buyer. You will see several additions to the newsletter from the trading community below. We are focusing on buying stocks coming out of bases on pullbacks and its working. A letter went out earlier today letting newsletter members know that the trading room has open enrollment for the next 5 days and then enrollment will close for an undetermined period of time. Let’s get to it!