This morning stocks gave up their early gains and looked poised to fulfill that correction scenario everyone seems to think is coming. Let's not get into the reasons, because we know its a lot easier to give a reason for stocks stocks to fall, after they fall, than it is to actually position for a fall because of said excuse. Monday Morning QB's don't have an off season in the stock market. Just ask those bears who were already penning their 150th "yeah I nailed this downside" blog post this morning as stocks reversed lower.
Yet again morning market weakness was just another opportunity for dip buyers, corporations, Central Banks, and/or the Plunge Protection team, depending on what disgruntled bear you ask......, to buy stocks at cheaper prices. Since 2009 each dip has worked out tremendously well for the dip buyers, and I didn't think this morning's dip will be any different. Even better I didn't give up today, I remained patient, and the market kindly cooperated. Everything came together.
Bonds fell off a cliff.
Anyone reading last nights update saw the looming overhead resistance. A level $TLT just could not break. Today buyers left and bonds collapsed.
How about that VIX? I've been covering it almost to a fault. I said it would fall further.... and it has... dropping some 6+% today alone.
$AAPL? It's on the brink of a sharp move to new record highs. Don't believe me? I actually think the recent bearishness from analysts is bullish for the stock. After all, none were bullish in 2013 when $AAPL was crumbling. Analysts were racing to downgrade the stock. At $55 split adjusted, I said the stock would rocket to new highs. I was spot on, and I think I will be spot on again. The recent broadening descending wedge pattern has worked wonderfully for $QQQ in April of last year, and $BIDU when the stock was at $82 in February of 2013. In each case I called for both to break out.. and they have. $AAPL.. now its your turn.
Today $AAPL came right back to the wedge and then busted higher. Here is last nights chart of $AAPL and today's hit of support and breakout.
Look how perfectly $AAPL came down to support. Magic? Luck? Just Dumb Luck? Call it what you will, but support held and the stock looks poised to break to new record highs.
The $SPY made a terrific reversal today off the lows. I think the $210 figure is in focus to end the week.
This is last nights chart, but it needs no updating. The path is cleared for higher prices.
$SCTY continued its massive rally. I covered this move before it happened in this video.
$YNDX moved over $18 today, what a tremendous call by JB.
Conclusion:
The day may be changing but my thoughts remain the same. You can read my thoughts from yesterday here. This is a market that wants to head higher and I will continue to trade for higher prices in the near term. I think bonds will fall, the US dollar will take a breather, and the $SPY will close the week at $210 or better.
Fridays have not been friendly for the market in 2015. But I think today's action shows that buyers will surface to buy the dip, if we get one.
Good night
Lastly:
I entered $Z $98 calls today as the stock held recent lows and looks poised to reclaim the $100 level on a bounce. Whether that is short lived or not remains to be seen. I don't care about what, if, or why.... just when. And I am positioned for that move to happen tomorrow at a relatively inexpensive price.
