Traders Corner   9 comments

The S&P 500’s weekly chart is looking overbought, as both the RSI and Williams %R are flashing overbought signals. While a correction could fix this, this could also indicate an extended period of sideways trading. Considering the 1773-1775 range is proving to be stubborn resistance, we may have seen the best it will be for awhile. If you are looking to sell a position, now may be the time.

The S&P 500 levels to watch today:

UPSIDE: 1773-1775 (3 data points, October’s high and the all-time high), and 1789 (top of the Bollinger Bands).
DOWNSIDE: 1770 (November 8th’s high), 1764-1768 (5 data points), 1761 (November 4th’s low), 1752-1755 (2 data points and the 20 day moving average), 1746-1747 (2 data points), 1729 (September’s high), 1716 (bottom of the Bollinger Bands), and 1713 (50 day moving average).


Posted November 12, 2013 by edmcgon in Daytrading, Investing, Market Analysis, Technical Analysis

9 responses to “Traders Corner

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  1. Sold 60% of my AAPL shares at a bit over $518. I had accumulated these shares over past year and average gain was 14%, which underperformed broader market by about six points. This puts me at 27% cash.

  2. Marshall, thought aapl was a long term hold for you? Why the sale now?

  3. Jeff – I am starting to move to the camp that AAPL is just too big and in too many segments that are being commoditized. With that, I think they are approaching being fully valued. When I think about my holdings on a relative basis, AAPL is pretty far down the list of where I would put new money. For instance, CSCO looks much more attractive than AAPL right now. Finally, the market has been going up IP up for a while and I wanted a larger cash position.

    • Is this a long term capital gain or short term gain on the sell?

    • I’m gong to hang in there through the holidays. Based on my personal experience and what I hear from friends and family, The new iPad air is a huge hit and with the holiday season coming up I’m expecting a pop. That said, I see your point and I’m gong to put a sell in for 50% of my shares at 550.

      Good luck

      • Jeff,
        Just remember, you’re not only betting on how Apple does, but also on whether or not the Fed tapers in December.

      • Jeff, with my remaining 40% of shares! I will also be rooting for $550.

      • I’m starting to get a little skeptical the TAPER! trade. See LateTom’s comments below.

        While I do intend to move somewhat to cash by the end of this month and I do plan to sell a few of my other holdings, I do not intend to sell my Aapl shares as I think the downside risk is minimal relative to the upside at the moment.

  4. I understand the market can not go up for ever in the short term.

    I have been reading about the Fed Taper since the beginning of the year. It seems to me those who are worried about the Fed Taper have missed one heck of an up year. I can understand a market drop on the news — if it ever happens — the Fed is reducing its buying and eventually eliminating it. But what is to keep the market from bouncing back after this drop, down day, pull back or what ever you want to tag an overall reduction in the DOW, S&P 500, etc? And if there is a bounce back how long does it take to recover — a week, a month, a year, a decade.

    I was never one for timing the market — till 18 months ago. And of course, my worse 18 months in the last eight years (vs. S&P 500) is the last 18 months. I am again a long term buyer and just don’t see that much upside to buying and selling on when or if there is going to be a Fed Taper.

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