bulls busting into 2015 locked and loaded

I hope everyone has been enjoying the holiday season and some time off away from the screens. In celebration of the season, The Trade Risk is extending a New Years special to hit the ground running into 2015 by offering the first 30 days of premium service for just $1. It’s a fantastic way to learn a simple yet effective momentum strategy and to kick off the new year with a brand new set of trade ideas. Check out the premium page for more details.

spy60$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.

iwmWeekly$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.

aapl60$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.

fb60$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.

gproDaily$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.

Enjoy what you read? Share it below and be sure to tag @thetraderisk.

Find similar content on the following:
Posted in , ,
Tagged with

Evan Medeiros

Evan is the founder of the Trade Risk. With 20+ years of coding experience and a B.S. in computer science, Evan brings a systematic discipline to investing in the stock market.

Don't miss out on more educational articles just like this!

Please enter your name.
Please enter a valid email address.
Something went wrong. Please check your entries and try again.

Leave a Comment