Archive for category: Premium

In anticipation of a change in the way a market sector is moving, we sometimes start looking for a possible catalyst or a trigger that will cause that change in direction.

NASDAQ - The NASDAQ  was strong and moved to new highs.  Everyone was really bullish, but I was expecting a drop.  The Trigger seems to have been 'earnings'.  We saw FB, NFLX, TWTR among others disappoint, and even though AMZN and GOOG blew away their forecast estimate, it was not enough to prevent the drop that we are now seeing.  Friday and Monday took back 3 weeks of gains. We could get a 1/2 cycle low bounce here, but we may not.

Have you ever heard those words while you were driving along using your GPS?

I am not saying that we are at THE TOP, but I have been saying that we could be due for A top. One thing that I have found to be true when trading the markets is this:  It is always Doom & Gloom right before a bottom is in place, and Everything is Beautiful when we are at or near a  top.  Right now the buzz is all about bullish earnings, and how you need to be buying the stock market bull run.  Well, we were buying at a dcl 3 weeks ago, but now?  I discussed my thoughts on Googles  earnings yesterday, so lets look at the charts and see what they are telling us...

I'm going to start with GOOG, because all the buzz on Twitter and in trading forums Monday was how it shot up $70 after hrs on Monday, and now GOOG & the NASDAQ would just blast off higher.  People were saying that you need to just  "buy this Bull Market".   I wrote last week and in Monday nights report a bit of a different take on things, including Googles $60 Gap after hrs...

GOOG -  I used this chart to show that it GAPPED OPEN last October after a long sideways chop, and then it just stalled, went sideways for weeks, and drifted down to fill the gap over a month later. It didn't start a giant rally then, and may not this time due to the 'timing' of things.

GOOG -  Tuesday,  Yes  Google gapped up but it formed a Black topping candle.  Black candles at the top of a move usually exhaust or end the move.   I think that GOOGLE is going to stall and drift or drop soon.

Now let's look at the rest of the markets...

Lets review the markets , and then I will discuss the purpose of the Theme Pic

SPX- I have been saying since the DCL that one should let their long positions ride, use stops that should be raised along the way, and I would assess things as we get to day 15...