IBM: A few days of grinding higher with the RSI moving up. We should test price resistance, maybe more! Nothing bearish in this chart, which is good for Mr. Market so far.
JNK: Sideways the past few days. Note the MACD has gone flat. The last time that happened price drifted higher.
AAPL: Stock is stuck in a little wedge pattern! A break down suggests the 200 day MA as the next target. So far, AAPL is not helping the markets. We should know very soon!
$VIX: It's do or die time for this index, sitting on major support. Below this and Mr. Market could go a lot higher. Will it hold and reverse and Mr. Market consolidates lower! We should know soon!
The Risk Chart ($SPX:$VIX): On the daily chart, price has jumped higher but there is room on the RSI for more upside. Notice on the daily chart when the RSI hit 70 and the MACD was extreme it occurred before some kind of market top!
Notice on the weekly chart when price hits or peaks just above the upper BB it served as a warning an early warning sign of some kind of market top. The weekly MACD is turning up. So, I'm looking for price to move higher and maybe create a divergence on the MACD with a new price high with pinching BBs. That would all be bearish and probably flash another warning.
$GOLD Weekly: Even though the RSI is over bought both price and MACD allow for more upside. The blue overhead trend line closer to 1,550 to $1,600. The green trend lines provide a little context!
$SILVER Weekly: Price quickly approaching the overhead trend line. Notice the big spikes on the RSI, when they turned down price went through a correctional phase. And in all cases there was no topping structure on the weekly chart!
My Watch List:
MCK: I had this up on Thursday as a long candidate and bingo, very nice follow through on Friday. Plenty of room on the RSI to support higher pricing. MACD is about to turn up to support price. All looks good. Above the prior high would be the next bullish link in this story. Price target is in the upper $80s.
APA: Price has stalled at the 50 day MA. Just below are a couple of gaps, lower BB and the uptrend line. I'm expecting we test that as the MACD fades lower.
FLS: Stock has also stalled on the 50 day MA just below the mid channel line. Divergences in place on the RSI and MACD, and the MACD is trying to head lower.
WLT: Price has held cluster support at the downtrend line and the 50 day MA. It's more bearish if it slides below that. If so, this should happen soon.
PAAS: I can't believe I have a short candidate on a silver stock when silver is in bubble mode. Price failed to clear the prior peak with divergences on a minor new high
TLT: Nice up day on Friday as price pushed right to the downtrend line. Plenty of room on the RSI to support a break above. MACD is right there for the turn up and cross. We should know very soon.
GORO: Here's a wedge pattern in development on a gold stock. I like the pattern and the volume Friday. The MACD needs to resolve itself and make up it's mind.
From My Trading Desk: Friday we sold our MCK for a nice gain to offset most of the lost on DAL by closing that long. We took a long on TLT and a short on PAAS.
Thursday, I wrote there were still too many options for Mr. Market, which still holds true. So, I'm trying to keep it simple with basic ideas for trading. I like the MCK chart and can see getting back into that one.
Happy Trading.
J.D. Rosendahl, Rosey