The Dow Jones shed 140 points on Monday and is just nesting at the 50day MA now. It needs to close above the 12272 mark to show that the uptrend is in place or we could see more selling taking place. This could also be a double top formation for the Dow. I would not recommend going long at this moment in time until we see the Dow at least displaying some strength. Be in cash position and wait for the market to show its hand.
The banking sector looked weak. Any rally should be sold until selling has subsided. Some signs to look for would be low volume and narrow price action.
Bank of America (BAC) gaps down on high volume.
Our financial barometer broke its trend line yesterday when it gap down. This could trigger more selling if it fails to get back above its symmetrical triangle chart pattern. Not looking good. Either be in cash or shorting the market at this moment.
Let's take a look at JP Morgan as its stock price experienced a huge volume sell off. Its stock could make an attempt to fill the gap and retest the lower channel of the trend line to confirm the weakness if it fails to get back above into the triangle chart pattern.
Casino stocks are experiencing remarkable strength despite the weakness in the overall general market. I am impressed.
Las Vegas Sands
Melco Crown Entertainment (MPEL) - Strongest of the pack
MGM Resorts - Weakest of all casino stocks
Have a good day!
The banking sector looked weak. Any rally should be sold until selling has subsided. Some signs to look for would be low volume and narrow price action.
Bank of America (BAC) gaps down on high volume.
Our financial barometer broke its trend line yesterday when it gap down. This could trigger more selling if it fails to get back above its symmetrical triangle chart pattern. Not looking good. Either be in cash or shorting the market at this moment.
Let's take a look at JP Morgan as its stock price experienced a huge volume sell off. Its stock could make an attempt to fill the gap and retest the lower channel of the trend line to confirm the weakness if it fails to get back above into the triangle chart pattern.
Casino stocks are experiencing remarkable strength despite the weakness in the overall general market. I am impressed.
Las Vegas Sands
Melco Crown Entertainment (MPEL) - Strongest of the pack
MGM Resorts - Weakest of all casino stocks
Have a good day!
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