Watchlist for 11/6/13
The S&P500 could be starting to finally go sideways. We haven’t seen actual sideways action July of this year. It is going to be a tough environment for a while until we break this upper level channel which is 1755-1773. Above 1773 (which I believe ultimately happens) the next area of resistance could be at 1782.50 which is roughly 25% gain on 2013. I was short going into Tuesday but covered my shorts on the morning weakness for a profit and I am now looking at this as a possible time correction as we work off some of the overbought conditions and allow the moving averages to catch up. The 21ma is still down at 1730 so its pretty far away.
Last week we saw the Russell break under an upper level support but the rest of market barely blinked, I was short biased going into todays open but after todays action I think that more neutral action seems to be the play for now. Something to take note of is the fact the DOW hasn’t broke above Sept highs, if the markets are going to continue to propel themselves higher we need the DOW to break above Sept highs. Today DIA acted very well and closed very strong, will be looking into a swing trade on that tomorrow into new highs.
GS - Watching again tomorrow for a break above 163. I did enter a small position today but I want to add on a 163 break because above 163 there isn’t much resistance up to 168ish. GS continues to show relative strength while many other bank names are showing weakness.
TSLA - Reported earnings which didn’t meet expectations but my thoughts are, since when is fundamentals important when it comes to TSLA. I think tomorrow if it opens in the 150s its a great buy zone. Remember TSLA is still in a huge uptrend and has its 100ma trading at 150.71. TSLA hasn’t been to its 100day since November in 2012 ! I would assume that people who have been looking for an entry point would use the 100day as a big area to buy. I am long a call spread tomorrow but am looking to move that into a few weeks away because I believe we see TSLA make a nice move into the EOY towards 200.
BIDU - Down 5 days in a row but today it caught a nice bounce off its 50day moving average forming a decent doji candle. Looking for continuation tomorrow and a bounce back to 158-160. Will look for a move above todays high for my trigger long.
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