{"id":39868,"date":"2017-06-26T01:40:41","date_gmt":"2017-06-26T08:40:41","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=39868"},"modified":"2017-06-26T01:50:58","modified_gmt":"2017-06-26T08:50:58","slug":"t2108-update-170623","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2017\/06\/26\/t2108-update-170623\/","title":{"rendered":"Above the 40 (June 23, 2017) – The S&P 500 Watches the NASDAQ Position for A Recovery"},"content":{"rendered":"

AT40<\/strong> = 54.2% of stocks are trading above their respective 40-day moving averages (DMAs)
\nAT200<\/strong> = 56.6% of stocks are trading above their respective 200DMAs
\nVIX<\/strong> = 10.0 (volatility index)
\nShort-term Trading Call<\/strong>: cautiously bullish<\/p>\n

Commentary<\/strong>
\nLast week, the NASDAQ snatched the baton from the S&P 500<\/a> (SPY) and now looks poised to resume its run of all-time highs. <\/p>\n


\n
\"The<\/a>
The NASDAQ closed the week at its highest point since the June 9th swoon.<\/figcaption><\/figure><\/p>\n

\"The<\/a>
The S&P 500 (SPY) looks content to churn in place.<\/figcaption><\/figure>
\n<\/center><\/p>\n

As a result of the latest recovery, I am looking to continue trading call options on PowerShares QQQ ETF (QQQ). My efforts to try to pick the short-term winners among the big cap tech stocks last week felt like herding cats. It was telling that all my profits came from QQQ call options. Apple (AAPL) was a glaring exception to my long bias. For the first time in a long time I swung at put options. While the trade was not successful, I remain wary as AAPL continues to struggle underneath its 50-day moving average. <\/p>\n


\n
\"Apple<\/a>
Apple (AAPL) is still struggling to recover from the June 9th tech swoon where 50DMA support failed to hold.<\/figcaption><\/figure>
\n<\/center><\/p>\n

AAPL is the worst relative performer of the “usual suspects.” Here is a quick review:<\/p>\n

    \n
  • Facebook (FB): Never closed below its 50DMA and on Friday made a new (marginal) all-time high.<\/li>\n
  • Amazon.com (AMZN): Never closed below its 50DMA and at one point traded above its all-time closing high.<\/li>\n
  • Netflix (NFLX): Closed above its 50DMA on Friday as it rallied for a 2.0% gain.<\/li>\n
  • Alphabet (GOOG): Never even touched its 50DMA and on Friday closed above its 20DMA.<\/li>\n
  • Nvidia (NVDA): Never closed below its closing low from June 9th and bounced off 20DMA support.<\/li>\n<\/ul>\n

    <\/p>\n
    \n

    @debbiecarey<\/a> – sure. This is just a charting exercise. $FB<\/a> bounced off 50DMA so that may be the low. If it breaks, $140<\/a> to $145<\/a> (buy dips)<\/p>\n

    — Duru A (@DrDuru) Jun. 10 at 01:17 PM<\/a><\/p><\/blockquote>\n