Trading Scenarios - 8/10/2014

Here are some possible swing long trading scenarios for WLT, BLK and COH.

AAPL & Friends Greeted Traders With A Big Holiday Cheer

AAPL held the opening price gap from the announced deal with China Mobile. The rising price channel upper trend line near 594 still in play.

Flirting With New High

After the initial pullback from the Cyprus banking problem, the market came roaring back and flirting with making another new all time high. While many disbelieved market participants and talking heads looking for a correction, the market continues to move higher with good breadth. The market will not be near a top until the market breadth starts to deteriorate.

Here is a video reviewing the market indices and a follow up review on the stocks that were highlighted from previous video.



Click here to view the video if you do not see a video player on your screen.

Waiting For A Catalyst

The market has been making new all time high as market participants wait for the long overdue correction or pullback. So far, every little dips were met with buyers. The market does not appear to be looking for a catalyst to move higher; instead, it is waiting for a catalyst to selloff. The breadth of the market has not deteriorated even though the market is extended. Until those breadth indicators start showing signs of shifting from strength to weakness, the market will continue to grind higher.

During this weekend, a development in the Euro zone is being play out and that could be the catalyst or the excuse the market has been waiting for to start the long awaited correction. No one will know how the market will open next week, but as a trader, one can only trade based on price actions and not on believes. Here is a video highlighting the price actions of the market indices and some stocks that show potential trade possibilities going forward.

Continue to exercise caution and trade defensively. Wait for the setup and the trigger. Do not attempt to outguess the market!

Click here to view the video if you do not see a video player on your screen.



Correction: ORCL is attempt to make a new multi-year high, not a new all time high.