– Happy Moon Festival!
Last Friday we had a typical window dressing day in U.S. market with gyration-like movement played by program trading as we saw huge spike up and down in SPY. SPY intraday chart had a similar cup and handle formation like GOOG had a few days ago which I posted in my previous blog. Although major indexes closed off the intraday lows, the weak internals made the market direction unclear led by the poor action in Transportation and some retailers as both FDX and NKE issued earning warnings so far.
Some recent beaten down stocks or laggards outperformed, such as BIDU, RIMM, QCOR, FB, MNST, etc. while others leaders continued their pullbacks seen in AAPL, CRUS, QCOM, PCLN, NKE, FDX, etc. Noticeably, AAPL‘s big Thursday big snap back reversed down completely, very bearish. I have a rule for myself: if I didn’t catch fast and furious action in first hours triggered by HFT, I ain’t chase, and sometimes it doesn’t seems a bad idea. GOOG with a stronger chart looks very tired and could see some immediate downward action similar to what AAPL did a week ago from its year high when I mentioned the huge volume spike without price advance.
It’s never hurt by being observant and be careful in the uncertain market. Let’s the price action tell us what to do! Trade well and safe!