Keep your eye on the capital outflows from China which will likely be affected by the Brexit. This is critical. If they increase to unsustainable levels, prepare for the BIG crash. This may take months or even years, but it's a very important metric to track.
The SPX broke key levels late today and if this level holds, a rally back would only be short-lived because of the ceiling that has been created.
The fear in Greenspan's face tells it all. Don't trust the next bounce back as it will likely be a dead cat bounce.
Folks in England will wake up to a big surprise.
Black Friday is coming. You've heard it from me now, but you could have heard it from George Soros much earlier. George Soros is definitely a guy to follow if you don't already.
Don't trust the polls. It's just too close to call. There are margin of errors to consider with the polls and many are still undecided.
If folks are out there trying to convince you otherwise, it's because they are trading in the direction of their opinion and want you to join their beliefs to make themselves feel better and more confident about their side of the trade. No one knows at this point how it will turn out.
So, with that said, box your positions and even though you may miss the one-day gain, you will be able to get in or out when the market gives you the right opportunity.
If you want to gamble, then go right ahead. It's like picking red or black. Good luck.
GOOG broke through a robust resistance level today. I don't think it will retract to that level today.
So, the good news is...wait for it...
The next major resistance to the downside is nearby. It may take an additional 10 points or so to the downside to get there, but once we get there, that is a major bottom.
Close your eyes and buy when it hits the next resistance point and build your pyramid. Remember, that next Thursday...the market may go wild and a day or so afterwards. Then, if the market does tank, the final layer of your pyramid can be created for not only GOOG but many others.
Forget about Apple. It's time to buy Chipotle (CMG) now unless you don't believe in the burrito.
CMG is very attractive at these price levels. If it breaks lower, sell it off as it may still be in the bottoming process. I would buy it here and place a stop loss about 5% lower.
Here's my post from Feb 5th, 2016. If you had bought it around $101, you will have realized a good gain.
Forget AAPL, Buy LNKD Now
by coolstarsky • Feb 5, 2016 10:32 AM Remove
If you believe in the long-term LinkedIn story, it's time to buy LNKD now.
Thank me later.
If you took in this advice in Feb2016, you will be laughing all the way to the bank as Microsoft has agreed to buy LinkedIn.
Apple stock has just intraday hit support on the downside. It may bounce from here or break through on the downside. This is when to put in a buy if you want minimal risk. If it break through on the downside and holds, then you would obviously sell it and cut your losses.
This is for short-term traders only.
Apple stock still has a bit lower to go before it hits resistance on the downside. I would say it has at least a dollar or two to go lower before it hits resistance. I will keep an eye on it.
If it turns around and breaks resistance, then we check for the next resistance point. It's all about managing risk especially for short-term traders. You have to manage probability to be successful as a short-term trader.
In my opinion, you only go long for the long-term when the charts tell you and you should only go long on high quality stocks (stocks that the big hedge fund guys own...folks like George Soros, Warren Buffett, etc.).
Apple hit resistance yesterday from looking at the chart and it has turned lower. There is just a minor resistance point on the way down around this level. If it continues downward which I would anticipate, it will come down a few bucks before it hits a support level.
So, if you sold yesterday, relax for a while before even thinking about going back in. Remember, even if the SPY continues its weak rally for the next couple of days, when we get about a week and a half closer to the Jun 14-15 Fed meeting, we will naturally sell-off for fear of a rate hike.
I wish this message board would allow pictures. I would show you how perfectly Apple hit its head on the ceiling and turned lower. It lined up perfectly.
I never delete my posts. Apple had turned lower intraday before it touched resistance. If you saw my other posts, you would see that resistance was a bit higher for Apple. It's still a bit higher. I would say around $101...it should definitely hit resistance. It's really when the chart hits that point so it's tough to provide an exact figure.
But, the point is that the risk increases when we approach these resistance points and it is better to sell or box your position until it either breaks or fails resistance.
It looks like Apple did a head fake earlier and propped right back up. Now, it is doing exactly what it was supposed to do in the first place. It has a very tiny bit higher to go before it hits it head on resistance and rolls over. I would be a seller at $101 if it makes it there.
Actually, I would sell now if I owned it and pick it up a few dollars lower. Again, this advice is for short-term traders only.
Unless there is some kind of breaking news today, be prepared to eat a shiny RED apple today. The same will be said tomorrow, Tuesday, Wednesday, etc. until it hits support which is quite a ways down. Sorry folks...we aren't going to see 100 this week nor the next unless of course there is some ground breaking news.
People lie; charts don't lie.
The market did break higher past the resistance point, but there is resistance right above. I doubt it will also break that resistance. Tomorrow is tough to call. The Nasdaq will definitely come down tomorrow even though Apple has a bit higher to go before it hits the ceiling.
Apple will go a tiny bit higher before it meets resistance. Start shaving off your long position if you are a short-term trader. It will come down when it hits resistance. I doubt it will break through. It will first come down after hitting resistance.