Here are my thoughts on the top three stocks on my watch list. But be aware I trade a very fast time frame and could change my opinion at the open Tuesday if prices move strongly through support or resistance that changes what I think the stock is saying. I do not trade my opinions, I trade price action, I try not to have opinions but try to see what is actually happening and trade accordingly. In trading I am trying to translate the chart in my time frame not write a story based on my own personal opinions.

Our beloved Apple has been in short term down trend since the gap up after the Samsung victory. We had a very nice bounce as the stock approached the 20 day sma. It appears to me we are range bound in the $660/$680 area. For me the next two logical long buy points is at the 20 day for a bounce or at a break above the 5 day ema for a shorter term momentum play to $680. A close above $680 could be a signal we go to $700. I would tread carefully here with small positions and tight trailing stops to lock in profits.
Google is in a short three day price range of $680/$689. The 5 day ema is acting as support. Break outs in this stock have been sold into. I will be buying at $680 or the 5 day ema and selling as it approaches the $689 level with a trailing stop. If we can close above $689 the next stop could be $700 the next day. If Google loses the 5 day ema and does not retake it quickly it then will likely reverse to the $660 level and then get support.

Price Line is wedged between the 200 day above and the 5 day ema below. It has actually been in an uptrend since bottoming out at $553 after the post earnings massacre. The sweet spot to short is at an intraday rejection back below the 200 day, if it can close above the 200 day then it will lead to money managers buying back in due to so many that have the close above the 200 day as a buy point in many of their systems. This is the line in the sand between many buys and sells. I am only interested in this as a short play not really as a long trade due to it having so much over head resistance from people that are waiting to get back out at higher prices that are setting on losses after the plunge after the earnings announcement. If I was going to go long I would use Apple, Google, Mellanox, or KORS, these could really run to new highs with very little overhead pressure from past holders that lost money.

By Steve Burns

After a lifelong fascination with financial markets, Steve began investing in 1993 and trading his accounts in 1995. It was love at first trade. After more than 30 successful years in the markets, Steve now dedicates his time to helping traders improve their psychology and profitability. New Trader U offers an extensive blog resource with more than 4,000 original articles, online courses, and best-selling books covering various topics.