I was surprised to see so many bearish candlesticks made on Friday given the strength in the indices. (You can see how many more bearish patterns were made Friday.) Maybe it was just people getting flat ahead of Tuesday’s Fed decision. I won’t be surprised if trading is somewhat muted tomorrow as traders keep their wallets on their hips ahead of Tuesday. That’s exactly where my wallet will be because I’m taking a couple of days off. I’ll get back to trading on Wednesday.
Below are charts of the Nasdaq, S&P 500 and the SOX. The SOX is looking really good, despite the weakness in INTC — I guess there is some benefit to price-weighted indices. Here’s — the SOX is basically flat while INTEL is down over 30%. It’d be interesting to see what the SOX would look like if it were market cap weighted… Anyway, the point is that there are plenty of semiconductor stocks on fire. I’ll continue to keep a select group of semis on my screen.
Oh yeah, I have to post a chart of Apple, which has been showing terrible relative strength the last few days. Somebody is really unloading their AAPL shares. But now the stock’s about 16% off its all-time high and is ‘trapped’ between support and its 50-day moving average. I’ll be watching and waiting for it to climb back above its 50-day moving average.
The DJIA’s 200-DMA is now at the highest point since pre-9/11/01, & the line is starting to head higher.