Tuesday, July 27, 2010

Technical Picture - Laggard S&P captures 200 SMA

The markets extended last week's advance with the laggard S&P finally closing just above its 200 SMA (NASDAQ, DOW and INDU achieved that milestone on Friday.) We've also retraced 50% of the May-June slide.

Biotechs have been pacing the way higher with M&A chatter ( SNY for GENZ). Last week I posted the GENZ daily chart before Friday's BO. Hope you guys caught this one. I traded it Wednesday earnings C&H pattern and again Thursday and Friday. Today I traded BIIB. The takeover is hostile and large caps such as CELG and BIIB are rallying along with GENZ as possible takeover targets if the GENZ deal fails.

AAPL setting up for expansion with 3 NRIBs since the earnings gap. Today's stick is NR7.

NFLX earnings gap extension and an identical trade again today. BOX trade - next test of support should break.

Also watching Ag/chem. POT daily shows price consolidating and could break higher anytime now.


RivTrader said...

Hi Jamie,

I check GENZ from the daily chart, seems it's hard to trade in the daily the last two days for they gapped-up and stay flat, unless you bought it last Friday for a swing.

Jamie said...

Riv Trader,

Yes, I was lucky I bought it Friday in the intraday congestion zone before it spiked higher. My trade was just a day trade. Hearing that they could be offered $72-$80.00, but it has now become extremely volatile. I didn't trade it yesterday.