Today was a volatile day in the SPY trade, but when the dust settled, it closed just about flat but positive. This creates a green candlestick with a longish tail below but a corresponding spike above the body of the stick. Some smart people named this the Dragonfly Doji. No conviction to move the market higher or drive it lower.
HDB had a stellar day. We mentioned this stock over the weekend as one to watch. It is an IBD pick and performing like a winner. If tomorrow is a day that seems to be decisive in terms of a market move higher, you may be tempted to buy this stock, but wait a bit longer. It is extended above averages and volatile. Perhaps a lower entry price will be more rewarding.
SLV is looking strong. I would be a buyer above 34.06. Can you look at the chart and see why that is a safe entry price?
COST was not a buy at the open as we expected. Not because we can see the future, but because after a move like it had yesterday, in general, some consolidation is in order. If you bought and placed the stop below yesterday’s low, you are down a bit, but safe.
It would be comforting to see a bit of a selloff in the SPY to retest the 50DMA, and if it holds, a move higher. After that bounce off the 50DMA, if your top charts are performing. Redeploy the dry cash.