THE MARKET IN REVIEW
Folks earnings season ramps up next week, however most of the energized hoopla may have already taken place this past week. Of course we still have APPLE- AAPL on deck for Monday after the close.
From a daily perspective we are stretched as shown below. At the very least as you can see we are at trend channel resistance in virtually all the indexes.
So the name of the game on the longside from here with regards to the indexes and many stocks too is to "Let Them Come To You" in the form of a Pullback Off trend channel resistance Highs down to trend channel support then we start to pick off the leaders.
Follow The Leaders
What Do I Need To See To Make Me Take A Trade
GOOG -- Google
BIDU -- Bidu.com
Funny how the google of china didnt participate friday. This bothers us.
GS -- Goldman Sachs
VMW -- VMWare
CRM -- Salesforce.com
AAPL -- Apple
Regardless of aapl's earnings we are sitting at trend channel resistance in all indexs and really could care less about aapl's earnings as the overall technicals out there trump the news driven event.
As you can see for the most part all the follow the leaders are nowhere near low risk longside Pullback Off Highs Entry points. This ought to tell you something about the overall market.
What To Watch for from here:
With all of the above the game plan is buy trend channel support, sell trend channel resistance. Right now the bulk of what we see are issues that are at trend channel resistance. This is how the market talks to us vs Ra Ra Ra from some talking head who has a traditional wall st. mutual fund to pitch.
When these issues above come down to trend channel support then we'll talk about going long but not until. Why? Because at these levels the peanuts are stale and we don't buy peanuts when the circus is in town anyway. In addition to that we also don't chase buses, but you all already knew that right?
What to watch out for from here:
Lots of 5 Waves up off the July lows showing , this corresponds with what a lot of Elliott Wave guys are starting to say out there and that is we are near being done with this bear rally off the March Lows. Now that all may be true however we'll let the action in the leaders and the trend channels guide us at this moment in time as it really is All About Trends.
So IF these issues with the 5 waves up look to them are finished what we want to watch for is a pullback to trend channel support then a standard tradable bounce at those levels only to see the issue fail shortly after the bounce by failing to retest its recent highs or put in a first lower high then fail. An example of what we are talking about is shown below.
Notice it also changes trends from higher highs and higher lows to that of a 1ST LOWER HIGH?
Thinking forward should we see this start to occur in the near future with all the leaders then you had better take note as the market isn't going to be far behind. But first let;s get the pullback to trend channel support.
The big question at that point in time is: Will You Be Prepared To Profit From That On The Short Side when the time comes? After all eventually all Uptrends change trends- Its that change in trend from up to down that is you're edge vs the traditional Wall St. buy and forever hold net nowhere style over time.
At all about trends its what we are preparing our subscribers for in advance so that when the time comes they'll be in a position to take advantage from it, will you?
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