Enlarge any chart by clicking on it.

Unless otherwise specified, ALWAYS use the 15min chart to enter my recommended plays because
CONFIRMATION is a MUST. In other words, you need to see a 15min candlestick that CLOSES beyond
the entry point, then enter when it moves 10cents after the high/low of that candlestick.

Friday, January 9, 2015

AMZN, IWM, SPX WEEKEND REVIEW

This is the year for small-cap (Russell) once is breaks out of the consolidation is has been in for all of 2014 (see chart below). So look for small-cap names or any stock/ETF (whether mid-cap or large-cap) with a similar pattern to take advantage of what is about to happen. That is, stocks/ETFs that ran up in 2012 and 2013 (especially 2013) but consolidated/pulled back in 2014.
An example is Amazon (large-cap) which ran up for two years and then consolidated in 2014 (see chart below). It acted just like the small-cap tracking ETF IWM. So this is Amazon's year. I believe the catalyst will be its earnings report scheduled for Thursday, Jan 28th after market close. The market hasn't been kind to AMZN after its recent earnings report, but I think that is about to change as the market is going to treat it nicely this time around regardless of what it reports. A good report will lead to a huge gap up and a run up thereafter. The market just needs ANYTHING to reward AMZN. So a mediocre report will be hailed as excellent news given its recent struggles. Also, a bad report will be spun as being "not that bad", resulting in a run up. I'm saying this because of what I see on the charts.

AMZN-WEEKLY


IWM-WEEKLY


IWM-15MIN


SPX-MONTHLY II


SPX-MONTHLY I


SPX-WEEKLY


SPX-DAILY VI


SPX-DAILY V


SPX-DAILY IV


SPX-DAILY III


SPX-DAILY II


SPX-DAILY I


SPX-30MIN III


SPX-30MIN II


SPX-30MIN I


SPY-15MIN
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