The market caught many people by surprise the past 2 days, first
the S&P fell hard below its 50day moving average setting off some stops and
program selling, only to explode back over yesterday catching all those long
sellers and shorts scrambling for long exposure. What looked like was developing into a route
to the downside quickly redeemed itself...crazy market! Small caps rallied
hardest yesterday as the risk-on trade took hold but they also had the most
damage on the downside so they will need to make up a lot of ground to change
the negative bias. IWM really needs to reclaim the $82 level to undo the recent
damage.
On an individual stock note,
INTC looks incredibly strong here. As you can see from the attached
daily chart going back to 2005, the stock is pushing into new multi-year highs
here on its straight path up from its late 2011 lows. This type of momentum
needs to be noticed and this stock should be on the buy the dip radar of any
trend trader. Steady buying has been done along the 50day moving average and
after some possible backing and filling, this stock could eventually push much
higher to test its 2003 highs near $35 by the end of the year.
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