The market moved sideways this week and that bothered me. It wasn’t the sideways movement – markets moves sideways pretty regularly – it was the fact that it moved sideways under the recent broken trendline.
That tells me the next breakout will be down rather than up. It’s not a slam dunk, but I’m keeping my eyes open.
FedEx (FDX) wished it had gone sideways this week, but instead got creamed. I love the company, but I think you can wait until the stock hits support before buying.
On the flip side, McDonald’s (MCD) has put together quite a few good weeks. I own this stock and consistently add more when it backs off about 10%. The last buying opportunity was late in 2012, but keep watching for another entry.
Gary B. Smith joined FOX News Channel in 1999 and is currently a regular commentator on "Bulls & Bears," including his own segment called, "The Chartman."