Today was a nice continuation from Friday’s bounce. Nasdaq almost gain back everything from Thursday’s 40 point drop. The Dow and SP500 both managed to stay positive. Both SOX and BTK are consolidating up! GLD managed to close above 65, while OIH finished in the red, which is not necessarily a bad thing.
Nasdaq
Nasdaq is starting to take the lead in the markets, as I had forcasted in this weekend’s post. Today’s stronger buying in the techs helped push the bullish tone a little more. Nasdaq’s 10- and 20-day MAs are curving up again. But, because the MACD is still negative, we’ll need to see Nasdaq catch up with its upper BB to be comfortable!
SOX
SOX is starting to consolidate upwards. But, since its 10- and 20-day MAs are still sloping down, it has a lot more work to do. SOX needs to get above 495 to start turning the 10- and 20-day MAs. Let’s first see if SOX can get above 485.
BTK
After about a month of consolidation, BTK is finally looking to turn back up. It managed to close right at the 20-day MA, and the 30-day MA is not far away. The MACD is turning up. Let’s see if it can clear the 30-day MA hurdle and catch up with its upper BB.
SPX
SPX managed a small gain today, but, further confirmed its position above its daily MAs, keeping the overall bullish bias intact. Both the SP500 and the DOW have advanced quite a bit this month. So, it’s ok for them to sit back and let the techs take the lead.
CDWC just confirmed today’s buyout rumor in AH. This makes NSIT look very interesting for the near future.
Good night and HappyTrading! ™
2 Comments
Hi Happy
Thanks for the daily TA – I am trying to learn more TA lately – studying Essentila TA from Leigh Stevens – great book but so much info !. How did you learn ?
Anyway I was wondering what you thought of GILD as a Biotech play ?
Stephane,
I learned from watching other people trade and from years of trading myself. I still find that no matter what you read, everyone perceives things a little differently. A method, or a combination of methods, may work for one person; but, it may not for the next.
I would recommend reading whatever that attracts you to read and understand what each TA tool does. Then, spend sometime testing them, testing your understanding of them. It took me a long time to be able to read the charts and make sense out of things. Also, do not forget the fundamentals. TA does help a lot when you’re trading, though.
GILD
Seems like a lot of people like it. With a split on the horizon, I think it’ll do fine for now. But, this thing has risen a lot. So, if you’re trading it, don’t hesitate to take quick profits.
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