AXXE started off just as expected holding support levels, testing resistance
at .21 as it finds its new power point for its next move.
Watching the chatter this morning, many investors are bullish that the .21
resistance point could be the breakout level to watch for
RSI - In bullish terriotry showing plenty of upside potential
Price - Trending above the 20ma support line, needs a .21 breakout
MACD - Under the zero line, trending up, bullish signal
Acc/Dist - Near bottom, reversing up, bullish
The last two times AXXE tested the HOD, acc/dist was at higher levels
making it not as an attractive chart as we would like to see.
Now with Acc/Dist at lower levels, this could be the perfect chart set up for
whats to come.
Oh, in case you missed this mornings email, AXXE signed an agreement
to sponsor a NASCAR driver at the Sprint Cup Sunday November 9th.
I have not been able to locate accurate data of how many spectators view
the upcoming event, but I image its in the millions, giving AXXE a huge
marketing distribution in a single day event.
How will the market react to such advertising is hard to say, but one thing
I know is that marketing is good for companies, and tends to be great for
stock holders.
For those of you keeping score, Thursday's action was the seventh bullish day in the past ten trading sessions. As of today's close the S&P 500 has gained 9.6% since the capitulatory low hit on Wednesday from two weeks ago. We figured there would be a bounce from there, but this advance has now exceeded all of our near-term expectations.
This isn't necessarily a good thing. While we love momentum as much as the next guy, as we've mentioned before, there's always a question of sustainability. It's possible for stocks to keep climbing after gaining nearly 10% in just two weeks. I looked back for several years though, and it doesn't happen very often... at least not without a dip first, to cool the trend off to a more palatable pace.
OK, for what it's worth, let's look at our chart of the S&P 500. We forged ahead to higher highs and a higher close on Thursday. I think at this point the bulls are going to go ahead and try to see what happens when we get to new record highs above 2019, which was the peak hit back on September 19th. That said, 2010 is actually the more meaningful line in the sand. We'll be watching both. A move to the 2010 mark would be more than a 10% bounce off the lows, which may be just about all the gain traders can deal with before getting a profit-taking urge.
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