Tuesday, January 19, 2010
ENTANGLING TERRAIN
AN APPLE A DAY..KEEPS THE BEARS AWAY
Apple (AAPL) in particular, and technology in general, led the market higher today as the company officially announced its already rumored meeting for the 27th, two days after its next earnings announcement. That’s a lot of anticipated news that could keep the bears out of this market, and Apple, for the next week or so. Apple can pretty much single handedly move the market, as it did today. From my perspective, the earnings trade is on, unless something really negative bruises the core. I sent an email alert to crosshairs traders (those who have gone through the training), alerting them to a possible trade with one caveat: earnings in four days, don’t load up, be careful. Anything can happen in the market and IBM after the bell today could help or hurt, at least for a day or so. But for now, an apple might just keep the bears sidelined. Better yet, if AAPL would announce a stock split…
200 TANKS ARE APPROACHING
Part of my trading strategy involves paying close attention to major simple moving averages, particularly the 200, 50, and 21. These I refer to as TANKS for their ability to provide a strong line of either support or resistance. When I look at my WEEKLY charts, I see 200 TANKS as the next possible resistance area for the major averages. There is still plenty of room to run and the NASDAQ has already surpassed this line but it is something to keep in mind in the weeks ahead. The DOW, RUSSELL 2000, and the S&P could bump up against this resistance at the same time that the NASDAQ pulls back to find its support there (SEE CHARTS BELOW). Just me thinking ahead, planning, AND preparing. You know my motto: TRADING IS WAR. PREPARE YOUR WEAPONS.
BATTLES WON (PROFIT TARGETS HIT):NONE
BATTLES LOST (LOSS TARGETS HIT): NONE
SURRENDERED (TRAILING STOP HIT): NONE
THREE (3) NEW ENTRIES TODAY.