Key Stock Trading Analysis
The markets are hovering slightly lower on the trading day. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $134.58, -0.21 (-0.16%). While the markets remain overbought, the free money policy of the Federal Reserve and light volume propping has created the best start in 25 years in the market. The scary aspect of this is that the rocket will eventually run out of fuel and fall to earth quickly. The question is simply when?
Bank of America Corp (NYSE:BAC) hit the daily 200 moving average today at $8.09. It now looks like it could pull back. The chart is extended with the market and upside potential is limited short term.
Apple Inc. (NASDAQ:AAPL) continues to plow higher. It is trading at $472.10, +3.27 (+0.70%). This stock continues to be the leader in the technology sector, following amazing earnings. If you are looking for a short, it is wise to look in other places until Apple at least hits $500 a share.
Semiconductors continue their trek higher. However, major resistance on the Merrill Lynch Semiconductors HOLDRS ETF (NYSEARCA:SMH) is coming into play. Look at the $35.25 as a short term top and shorting opportunity if hit. Stocks like Intel Corporation (NASDAQ:INTC) remain dramatically extended.
As the market continues to float, preparation must be made for the next big move.