Inquiring minds want to know, what I was watching this week and last week to determine my stance on the market. If you remember a couple weeks back, I called the end of a nice rally in the SPX. I typically watch the averages on an intra-day basis as I am normally day trade in index futures or swing trade index/etf options. Let's take a look at that same 20 day chart as of today... On the 15th, you see the big break of support that I had written about. On the 17th, a successful re-test, and from then on a nice downtrend. On the 24th, we failed to make a lower low, which hinted to me that we had established a bottom (double bottom). We confirmed it by creating a higher high on the 25th. Now you can see that higher highs and lows are developing.

This doesn't mean I am overall bullish on the market. Well, I am but recently that feeling has been diluted by a few things. Primarily some weak earnings, $90 oil, and the market breadth. The NASDAQ's stellar performance has been fueled by three stocks...RIMM, AAPL, and GOOG. In my mind that tells me it is not as strong as everyone thinks. In fact, Semiconductors are typically a leading indicator, and take a look at the SOX... That to me is a major reversal that I have been waiting for for quite some time. I want to see how the market reacts outside of earnings. Good ol' MSFT pumped the market full of optimism, but that doesn't mean it can't be taken away.

I want to take a moment to review a few things. In fact, I was debating a follow up video to review my watchlist. Let's see what time permits for me today.

Take a look at MCRS. I mentioned several days back that I liked the set-up...I hope you enjoyed the reward... How could I not bring up ISRG!? I know a few people took this idea on my last watchlist, nice work! Also, those that read my rants about what I am trading in know that I have held GLDN forever. This has been one of my longest running trades of all time, next to VIP. Look at it go! Make sure you haven't forgotten about GLD. It's a great hedge as your dollars are becoming worthless. Anyhow, make sure you are still watching the stocks in my watchlist, and the shopping list I gave out yesterday. There are still some good trading ideas built into those. Stay tuned as I might run another video later today...

Recommendation: If you read this blog daily, the market will reward you with profits and plenty of trades.

Long: Fridays

Short: the Marketcast

Disclaimer: Tom Petty is definitely an Option Addict