The indices are holding up well with now the Dow Jones leading the way higher. I don't exactly love trading the Dow and Dow stocks but you go with the flow of the market. If the Dow wants to try to be the "surprise performer" for a little bit then so be it, I'm willing to give it a shot and trade some good setups in large caps. Especially when setups were starting to dry up in tech stocks as I was saying last week. The Russell is still a mess and did end up breaking that $115 level, which put it in negative YTD again and told me to move on. NASDAQ isn't in a bad spot here, breaking last weeks high could trigger a new leg up and that's something I'll be watching for along with the Dow move that is in progress.
Taking a look at the 130m trends we see clearly what I'm talking about. Dow already making a move, NASDAQ with the potential for a move, and Russell a mess. That's the beauty of charts, don't ever take my word for it just look at the chart to fact check me or any one else sharing ideas. In other news the Alibaba IPO finally came and just like with any other IPO that I'm gonna trade, there needs to be a decent amount of price data to understand how it trades and get some trends going. Everyone including myself is expecting this to be another Google, Apple, Netflix type of stock so that's always good.
Here is the watch list. Like most of you know I go through a list of stocks and pull the best looking ones to put on this watch list. So the fact that a lot of these Dow stocks made it to the list is just confirming what I think is happening. There are also some tech stocks on there that are looking good. Those short names at the bottom probably won't be acted on, they are just there for good measure. I think that covers all the bases for this week. Thanks for reading.
Trade well,
-Michael
