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We are headed into the infamous choppy summer months of trading, so there seems to be more than enough caution out there amongst the entire trading community. The month of April proved to be largely a consolidation for the market, with some sectors and stocks getting hit more than others. With that backdrop, my focus is even more on sticking to the price action and my general trading discipline. I do not consider it a foregone conclusion, by any means, that we have neither topped out here nor are off to the races higher.
The recent pullback in the semiconductors had them finding support right where they were supposed to, not only at the rising 20 period weekly moving average, but also at the major support trendline dating back to the October 2011 lows. The presumption is that these lows will hold, and that we have just witnessed nothing more than a bull correction. That opinion would change, however, if the SMH, ETF for the semis, lost $33.
In the meantime, the market has responded in a way that is pleasing to the bull case. As an example, I wrote about SWKS impending correction back in March as likely a sound buying opportunity in this post. Since then, the stock pulled back from roughly $29 to $23, and then printed a massive weekly bullish engulfing candle to close out last week’s market reversal higher. In addition, members of 12631 can check out a great seasonality play from The PPT for the month of May in our chat room tonight.
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Howz ‘baout a McRoyal …pleeeze. Nice one!
Royale with Cheese