My Market View after Dow hit 14,000 …

Real movements do not end the day they start, and it takes time to complete the end of a genuine movement.Β  Never be afraid of the normal movement, but be very fearful of abnormal movements.” – Jesse Livermore

On the first day of February or last Friday, the market celebrated most upbeat economic news including the Job Report with nice move. Dow finally closed above the psychological level of 14,000, the S&P 500 closed up 0.7% at 1,513.17 and the Nasdaq rose 0.9%. SPY closed at 151.24. Vix dipped below 13 again. GOOG closed at its fresh new high above 775.

However, the market internals don’t look as good as the absolute gains shown on the major indexes.

Many leaders either had bearish reversals or stalled out with choppy action for the recent days, seen in PCLN, AMZN, FB, DDD, SSYS, MA, not mentioning the previous leading stocks AAPL, MLNX, VMW which barely bounced from their recent year lows. Retailers also were the weaker ones as many closed in red; additionally, the IBD 50 lost 1.1% for the week. As much as rotation is going on, stock picking is becoming more challenging for momentum or swing traders.

In an overbought market with lots of random price action with fast speed and wild swing, it is good to be aware of big gap up or down reacting to earning news as HFT (High Frequency Trading) has been playing a big role that either bring them down or up.

Following first 30-minute rule helps avoid getting chopped off . Y0u can see the picture of the wild price action in ISRG CMG on my Twitter picture section. First 30-minute rule: some big gaps related to news can be hard to interpret in first 15-30 minutes of trading, so it is good to let stocks settle before jumping in.

It’s important to be nimble and be patient with the entries levels for cushion. Keep an open mind for any price change. Happy trading to all!

Here are a few charts with my notes to share:

SPY 151.24 Up 1.54 Chart of SPY daily chart with note 2-3-2013

PCLN 685.56 Up 0.09 %)Chart of PCLN daily chart with note 2-3-2013

MA 518.71 Up 0.31Chart of MA daily chart with note 2-3-2013

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About Angela Zhou @z8angela on Twitter

I am a full-time swing/day trader trading stocks & options. I got into stock trading/investing since the internet bubble in 1998. I am optimistic in life & objective in trading. The purpose of this blog site is for me to share my trading experience and market view with others. I may write something about life experience and living, too. My motto is: A Great Mind Becomes a Great Fortune. I love people and life, and I appreciate beauty in everything. Thank you for viewing!
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5 Responses to My Market View after Dow hit 14,000 …

  1. Marc Kitsis says:

    Good insight.Β  Thanks

    ________________________________

  2. MarkAlan says:

    Nice Review with experienced insights! Thanks!

  3. Vesna says:

    great charts, thank you!

  4. Richard Goldman Richard8G says:

    Beautiful and very well explained. Thanks!

  5. tina says:

    you are right in every way, its nice to help ppl on ST and Twitter that are beginners…gamblers

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