Stock Charts, Technical Analysis; TruCharts.com Trading Ideas Blog Week ending 08/29/2014
Happy Labor Day weekend to all. It has been an interesting trading week. We had predicted markets to trend higher into the Labor Day weekend and S&P to reach 2000 and we did cross and close over 2000 for the S&P and the DOW crossed 17000. We now have higher highs and the trend lines are still in tact. We are heading into a period of some volatility - Sept - Oct, but then we have Q4 which is typically a strong quarter for the markets.
The Fed has clearly signaled its intent. Stop the bond buying and phase it out in October. In addition, Fed Chair Janet Yellen has not indicated any clear timeline for raising the Fed funds rate - the motto should be - Don't fight the Fed and buy on dips. Even though the valuations are getting out of hand - we expect this to continue until the Fed actually makes up their minds on the interest rate conundrum. The Fed has backed itself into a corner and is is too scared to really take action. We do not expect any action on rates till at least some time in 2015. Which means, this bubble will keep growing. The Fed is clearly telling everyone - please take RISKS - and you can see that in the IPO market, funding of new companies and valuations that are inexplicable. Whenever markets go up for no reason, everyone tries to come out and justify why the markets are going up. No need to explain - just buy and go long. We have been publishing our blog on wordpress, but have decided to use blogger now for its flexibility. Our most recent posts are at trucharts.wordpress,com - check these out.
Also checkout this page: http://truchartscom.blogspot.com/p/why-is-trucharts.html
Now let us get to this week's trades:
We went long TUBE (good earnings, strong forecast and insider buying) . We went long TWTR last week. See the weekly chart below. We monitor the MACD and RSI indicators along with volume. We had picked USO/OIL ETF as these were extremely oversold and these are rebounding and moving higher. See the charts below:
The Fed has clearly signaled its intent. Stop the bond buying and phase it out in October. In addition, Fed Chair Janet Yellen has not indicated any clear timeline for raising the Fed funds rate - the motto should be - Don't fight the Fed and buy on dips. Even though the valuations are getting out of hand - we expect this to continue until the Fed actually makes up their minds on the interest rate conundrum. The Fed has backed itself into a corner and is is too scared to really take action. We do not expect any action on rates till at least some time in 2015. Which means, this bubble will keep growing. The Fed is clearly telling everyone - please take RISKS - and you can see that in the IPO market, funding of new companies and valuations that are inexplicable. Whenever markets go up for no reason, everyone tries to come out and justify why the markets are going up. No need to explain - just buy and go long. We have been publishing our blog on wordpress, but have decided to use blogger now for its flexibility. Our most recent posts are at trucharts.wordpress,com - check these out.
Also checkout this page: http://truchartscom.blogspot.com/p/why-is-trucharts.html
Now let us get to this week's trades:
We went long TUBE (good earnings, strong forecast and insider buying) . We went long TWTR last week. See the weekly chart below. We monitor the MACD and RSI indicators along with volume. We had picked USO/OIL ETF as these were extremely oversold and these are rebounding and moving higher. See the charts below:
Our pick for this week is SPLK: Check out the weekly chart here below: Expensive valuation but the weekly chart indicators are very strong - rising MACD, rising RSI - strong close and very high volume.
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Check out this link on our site for End of Day Technical Screened Reports:
http://www.trucharts.com/MarketReports.aspx
Check out this link on our site for End of Day Technical Screened Reports:
http://www.trucharts.com/MarketReports.aspx
Trucharts Team.
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