Scalper1 News
Major averages rose Friday on higher volume with the NASDAQ Composite closing at new all-time highs and up the most due to favorable earnings reports from tech heavyweight Google (GOOGL) which helped other substantial NASDAQ stocks rally including Illumina (ILMN) and Priceline (PCLN). Another tech heavy, Facebook (FB), also had a gap up. Stocks such as GOOGL and FB could be considered potentially buyable gap ups as they are tech leading heavyweights, but the speed of ascent may be slower than our normal type of buyable gap up. GOOGL’s market cap stands at $478 billion and FB’s at $267 billion. Nevertheless, they could be considered actionable if either meets your risk tolerance profiles. That said, both may rise in a back-and-filling manner. Gold hit new multi-year lows even though China’s supply of gold came in lower than expected. That said, China is vying to get the IMF to include its currency as a reserve currency as it challenges the hegemony of the US dollar, so that could have far reaching implications. With all the cross current in play regarding the price of gold, it is best as always not to try to out think the markets, and focus on the technicals. Commodities in general are also heading lower once again as they approach multi-year lows. The global economy’s woes especially in China imply slackening demand for commodites, thus the lower prices. As we have had a number of strong, actionable names over the past week as the market bounced higher, do as we have advised all year by taking profits when you have them in context with the overall chart, and keep stops tight. In this market, stocks take the elevator up and the trap door down. Scalper1 News
Scalper1 News