In general, this past week was fairly positive for the market. However, I’m looking at charts like the one below to determine what we can expect for the remainder of the summer.
Overall, the market has really been consolidating the past few weeks. And consolidation after a huge move is usually resolved with a continuation of that previous move. In other words, one would expect more downside.
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However, if that triangle sees an upside break, it would lead me to believe the bull is returning and you’d see some positive summer action.
Personally, I’ve been accumulating stocks and am in a position where I’ll buy more on a move down, but sell what I have on any dramatic move up.
As for individual stocks, I have to comment on Facebook (NASDAQ:FB). In fact, I talked about it at length here. Let me sum up the situation from just a technical perspective: we know nothing!
And if you’re any kind of trader or investor, if you know nothing, it’s a head-scratcher as to why you’d even consider the stock.
On the flip side, a stock many of us are very familiar with it PepsiCo (NYSE:PEP). Memorial Day kind of kicks off their “season” and the stock looks very good right now.
Notice it had a recent breakout, then a brief pullback. Over the past few days, it appears to have regained its mojo and I think it goes higher from here.
That’s it for now. Have a great Memorial Day and travel safely.