` Gary Investing Blog: 06/20: SPY, UVXY, AAMRQ, FSLR

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Thursday, June 20, 2013

06/20: SPY, UVXY, AAMRQ, FSLR

First Solar, Inc. (NASDAQ: FSLR) has dropped all the way back to the break-above level, $41.00. MACD is below zero and MACD histogram is showing significantly negative value. I think FSLR should rebounce at $41.00 but the continuation of the uptrend is yet to be determined. If $41.00 is break above, FSLR will very possibly fall back to $30.00 level in no time. You may consider longing FSLR between $40.00 to $41.00 with a tight stop for a rebounce play.

SP500 fell below 50SMA for the first time since 2013. Bearish MACD crossover is around the corner. SPY is falling with huge volume and RSI has broken below 40 support level as the Fed may cut their commitment in their asset buying program. Consider reducing your amount invested in stocks and equities for the time being.

For most of the time, when SPY falls, VIX index increases. If you believe the market is due for a huge correction, UVXY could be a good investment or serves a hedging purpose. Notice that UVXY's 20SMA has crossed above 50SMA first time since 2013 which, I think, would be a significant bearish signal for the overall market.

AMR Corp. (OTC: AAMRQ) I have been mentioning AAMRQ (or American Airline) a lot since the begining of this year. Both 200SMA nad 50SMA is showing a rounding top and MACD is felling quickly. AAMRQ has also been trading below 50SMA this week. I think the hype of this junk stock is coming to an end. AVOID.

1 comment:

  1. Thanks for the ideas on the market updates. will def be adding these to my list.

    ReplyDelete

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