Market Recap with AAPL, FRAN, LGF, and Gold Analysis

A bearish engulfment today could signal the market is ready for a pull back. Volume continues to be ridiculously low as investors travel and soak up the remaining bits of summer. Expectations of more QE will run us higher short term, but what happens when everyone gets back into the game in September and realizes it isn’t coming?

Also interesting, the Shanghai Composite continues to severely underperform the US market. Just goes to show what a ton of stimulus and expected stimulus can do for a stock market. However, we should be conscious of the fact that a sour economic environment in China will ultimately affect the US.

Updated indices below alongside several nice charts utilizing the chart recognition tool from my MarketSmith account. Stay frosty (sharp) out there.

Large heavy volume reversal here. Keep an eye on the 10 MA and $644 as potential levels of support. As the most valuable company in the world ever, Apple cannot break back below $620 if it wants to maintain its breakout move higher.

A good look at here of a developing Cup & Handle Base from Lions Gate Entertainment (LGF). For those unfamiliar with this pattern, head over to InvestingTeacher.com and brush up with a lesson starting Thursday!

Really pretty break through $32.60 last week on strong volume. Bouncing around the $34 level is fine, now just need a strong confirmation day to take the stock back through $35. This would be the next followup buy opportunity to consider.

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Comments

  1. C$INR says

    At S&P 4 yr, high, can the Fed justify QE3 in an election yr? But expectation for Eu QE are high..rumors everyday..