$SPX 60 Minute: I said yesterday that we might have put a finish to wave E. We need to be mindful that E could expand into a larger corrective abc too. So, if wave E is in we should see continued strength almost immediately. That could happen if earnings continue to be good like IBM and debt ceiling talks progress and remove the uncertainty about default from the stock market. I think those could be the two catalysts for Mr. Market. If, E needs to expand into a larger abc down, we almost have to reverse immediately, because today was wave b or most of it.
$SPX Daily: Price lingering in No Man's Land on the daily. We need the market to show some follow through soon for the bullish case that E has finished. And a turn up in the MACD would be a nice touch too.
IBM: Holy Cow!. The last few times I wrote about IBM I said the corrective behavior the past several days did not look threatening. When we see price run up and then flag like IBM, it's typically a good sign for continuation upward. We got a lot of that today, as price gapped over trend resistance. That is very bullish if it holds. What's good for IBM is obviously good for Mr. Market.
AAPL: Price continues to show strength and holding a sharp uptrend line. What's good for AAPL is good for the NASDAQ. Note: AAPL is up large in after hours on a blow out earnings number. It will be interesting to see if it holds because we are over bought on all time frames.
JNK: If the markets are going higher, then I expect this to push into another high.
My Watch List: Today was a big day for Mr. Market, but it needs follow through to support the bullish case, and maybe AAPL's announcement after the bell could be the catalyst. What's frustrating is it's mostly Mo Mo stocks moving higher. Not just IBM and AAPL, but GOOG (which looks great), PCLN, BIDU, NFLX, AMZN, retailers, etc. I'm not a Mo Mo trader, so I tend to struggle when that's mostly what's working. I do have a couple of ideas that we did buy today.
LUFK: It looks like ABC down below the trend line. It broke back above and then back tested it and now price is trying to mount a rally. RSI has plenty of room to support higher price.
BRCM: In a down channel with a big price move today. This could easily bounce to the top channel line tomorrow. A break above that is a solid trigger with the market pushing higher. We bought a half position today.
From My Trading Desk: We scalped a gain on LUFK today, and towards the close we took a full long on it. We sold our position in AEM and SRS for small losses on fractional positions, as they didn't pan out and I didn't want to hang onto them hoping something would work. We also took a half long on BRCM.
As long as we are still inside the range of the wedge on the market, I'm going to keep trading light and minimal, it's just too frustrating trying to trade the ping pong movements of a wedge. I'd rather wait for the market to show more commitment.
Also, chances are high we sell BRCM tomorrow if it pushes higher on the open but doesn't take out the top channel line.
Happy Trading.
J.D. Rosendahl, Rosey