Traders Corner   4 comments

The S&P 500 finally broke and closed above the 50 day moving average on Friday. Most of the technicals are looking neutral today, as Friday’s bounce pulled them out of oversold territory. The question this raises is: Is this the beginning of a longer run-up in the markets, or was it just a technical bounce? I lean towards the latter answer, but both answers are possible.

The S&P 500 levels to watch today:

UPSIDE: 1679 (August 15th’s high), 1680 (20 day moving average), 1682-1684 (4 data points), 1686 (August 9th’s low), 1688-1693 (12 data points), 1695-1696 (3 data points), 1698-1700 (2 data points and July’s high), 1703 (August 5th’s low), 1705 (August 6th’s high), 1707 (August 1st’s high), 1709 (2 data points and the all-time high), and 1721 (top of the Bollinger Bands).
LAST CLOSE: 1663, inside the 1663-1664 range (2 data points).
DOWNSIDE: 1658-1659 (4 data points and the 50 day moving average), 1656 (August 21st’s high), 1654 (June’s high), 1652 (August 16th’s low), 1645-1646 (3 data points), 1638 (bottom of the Bollinger Bands), 1639 (August 21st’s low), 1604 (July’s low), 1597 (April’s high), 1581 (May’s low), 1572 (March’s high), 1560 (June’s low), and 1555 (200 day moving average).

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Posted August 26, 2013 by edmcgon in Daytrading, Investing, Market Analysis

4 responses to “Traders Corner

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  1. Sitting at lunch, seems like another melt up day for me. Am up 0.66%, so difficult to be unhappy with that. I am 21% in cash, still waiting for that drop that never seems to occur. My purchase of GAME last week is working nicely thus far (up about 3%), but true test will be on the 29th. TCPT is up about 3.5%, so that play continues to be one of my most profitable (up 36% overall for me). I do have several buy orders in at puke prices (HIGWT, BACWT, NSC, PNC and MRK), but with the melt up, the prices are looking less and less likely absent a sharp drop. Everyday I ask myself if I should be selling something. The answer is that I am comfortable with all my stocks. Nothing seems wildly overvalued and while drops are always a possibility, that would be a signal to me to buy more, not massive dump.

    • ” still waiting for that drop that never seems to occur. ”

      Yeah if you follow too closely on this site when you are long time investor, you tend to think it is almost always that time where you should be waiting for the drop to get in. At least that is the way for me.

  2. Ed,

    Thoughts on INTC and their prospects going forward, also entry price under $22 or $21?

    • INTC is in a narrowing wedge at the moment, which means we should get a strong move up or down in the near future. It depends on your investment style as to what to do:

      1. If you’re a dividend investor, now is as good a time as any, with their 4% dividend yield.
      2. For value investors, they look fairly valued at current price. If you think they are undervalued from a growth perspective, Intel could be a good deal at the current price. However, I would start small, and plan to add to it later.
      3. For short-term investors, I don’t see anything to make you want to buy it here. I would sit back and hope for a drop, preferably below $20.

      My views on Intel haven’t changed. I like them as a company. Their recent quarterly year-over-year revenue and earnings drops were to be expected, as they are in a transitional period. But I suspect they will come out on top, and you can collect their dividend while you wait for that to happen.

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