– The Will to WIn is Important, But the Will to Prepare is Vital.
– Expectation, not the News itself, is What Moves the Market.
Last Friday U.S. market continued its weak trading session. Both the Nasdaq and the S&P 500 finished in red with mild loss, also below their 50-day moving averages, but the Dow was slightly up.
Since the bearish reversal on Job Report Friday, the market has been in the selling mode led by so-called too-big-too-fail tech giant AAPL which is now 11% off from its all time high. It re tested its recent low which was hit last Tuesday, or its 100-day moving average around $625, but finished slightly up at $629.71 with a doji bar, an indecisive sign.
Meanwhile, other tech leaders GOOG, AMZN, and LNDK all joined the sell-offs. GOOG is now below its 21-day and was spurred its selling by some negative news last Friday. Such action should not be surprising since I mentioned on GOOG’s daily chart posted previously. LNKD pulled back and now under cut its 50-day MA despite being upgraded, a negative sign. Financial sector reversed lower led by JPM and WFC on their earning news. Selling on the news is not a good way to start an earning season.
However, a few stocks caught my attention with somewhat positive tones despite a weak market.
A few lagging stocks: MNST bounced up big with 5% gain after it was sold off on Thursday with a downgrade; BIDU was up 2 points and it seems now to build a long choppy base until its next earning report; FDX is still holding above its all major moving average lines. Leaders MA and V are still acting strong, above their 21-day ma lines.
The coming week will be option expiration time, and usually heavy volume would occur combined with earning reports by many leaders. During the correction, it’s always good to be defensive while trading small and being nimble.
It’s easy to get chopped around with rotation, bargain hunting and short covering going on in this kind of market. From my own trading experience last week, I was reminded again that it’s easier to trade better when tweeting/talking less, and trading with discipline.
Thanks for viewing and trade safe!