The Dragonfly Doji or something like that …

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.

Talk tomorrow.

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