bulls busting into 2015 locked and loaded
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$SPY we saw some solid advancement this week by the bulls as they managed to continue higher after last weeks impressive turn around (v-shaped) rally. The $SPY chart is still skewed lower by just over 1 point due to last Friday’s ex-dividend, but after taking that into account we can see we have definitively broken out to new all time highs in the indices. Price faded into the close this Friday but still hardly puts a dent in the steep rising trendline we’ve traded along over the past couple weeks. 207.80 is the near term support to have on watch if we do see further fading action heading into next week. History suggests we are likely to see a quiet and light volume last week of the year leading into the New Year. Higher highs and Higher lows on all time frames in the $SPY is the exact type of environment I want to find long exposure in. I hope everyone had a great 2014 filled with success and improvement and I look forward to trading with you all in the new Year.
$IWM we talked about the importance of these levels in last week’s recap and pointed out the formation in the small cap index is the best thing the bulls have going for them right now. Similar to the $SPY, we saw further continuation to upside this week closing at new 52 week highs, and marginally up and out of this year long range. A significant breakout here implies 2015 could see some much higher prices if the bulls can manage to continue us higher. As long as we maintain above 118 this is a chart or area of the market you should want to find long exposure in.
$AAPL a nice session by the bulls on Friday to set up a near term breakout above 113 resistance. The long term uptrend is still very strong in Apple and after this weeks close it looks like the bulls are trying to make their way back to the all time highs made at the end of November around 120. I took some long on Friday at the close and I’ll be using the breakout level around 113 as my line in the sand to exit the position if momentum leaves. Looks good to me, we’ll see how the year end shapes out.
$FB I’ve been writing about the strong relative action in Facebook over the past two weeks and I came into the week long the name. I was stopped out on Tuesday above 81 as Facebook began reversing lower off of the 82 test but overall it was a profitable breakout buy from around $79. Facebook still looks good here as it’s been finding support around 80.50 and is beginning to base out just below the highs. If Facebook can clear back above 81.25 I would be interested in another long for some continuation higher. Looks good and on watch into next week.
$GPRO here’s a good example of how powerful a short squeeze oversold bounce can be. GoPro has been cascading lower day after day for about a month with no strength in sight, until this week. The bulls managed to cut right through all near term resistance and break above the critical intermediate 65 level. After a strong 4 day bounce of this size it’s tough to consider this area very actionable for a trade. It’s a watch candidate for me right now, and I’ll be looking for some type of sideways flag to develop to give me a new breakout setup.
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