The DOW continued it's down trend today with another big move lower. We haven't traded low enough yet to rule out the market gaining traction into one more push higher into wave B or wave 3. And we need to be cognitive of that.
The DOW is trying to roll over, and so is the daily MACD.
IBM: The stock was a loser today, and looks to be rolling over along with it's MACD. The DOW heavy weight is a strong influence on the DOW, so we need to keep an eye on IBM. If it gets below the bottom channel line that's going to be very negative for the markets.
AAPL: The stock held up a little better than most but its on the verge of rolling over too. There's a little flagging structure going on right now, but it's minor.
From My Trading Desk:
Today we closed out short on COH for a nice one day gain, and filled another 1/3 on SRS bringing it to a 2/3s position. Don't get me wrong, I like the COH pattern for short, but I also like the SRS even more. See chart below:
It still looks like wave 4 and 5 completed on a double bottom. Volume declining into wave 5, and volume increasing on the rise the past 4 days. It cleared the 50 day MA today. If the markets are going to be soft tomorrow, this might gap up as the MACD is trying to turn higher. It's still an aggressive bottom fishing trade, but I like the way its behaved so far.
DAL: This is another we've been short. The stock continues to slide and pressuring the bottom Bollinger Band lower. The head and shoulders top looks more viable each day.
COH: I still like this stock as a short. It has big divergences on both the RSI and MACD.
Overall, we're taking it one trade at a time. I don't want to get ahead of myself. Each day the market moves lower, the more it confirms the head and shoulders pattern might be real and a big sell off is coming. But, it hasn't moved low enough to rule out another push higher.
If the market is ready for a sharp correction, there will be plenty of trading opportunities, and I'd like better confirmation to be more aggressive than we are. We should know in a week or two.
Hope all is well.
J.D. Rosendahl, Rosey