Here’s your trade strategy in a break out market – May 5, 2023
I want to talk today about Shopify ( NYSE: SHOP ). The company reported earnings, you can see that, right? Lately breakouts have actually been working.
It wasn’t too long ago that every single stock that broke out, broke out enough to suck you in and then spit you out. Every single one, it seemed like, breakouts just weren’t working. Now they are, and that gives us a good feel for the market and the change in tone of the market.
Now we’ve got these breakouts working, that’s a good thing. We see them on Microsoft ( NASDAQ: MSFT ), that’s working. Meta ( NASDAQ: META ) kept working for a while, now it’s pulling back and we like this. But the point is, you didn’t get these massive moves, these massive reversal moves. Apple ( NASDAQ: AAPL ), the same thing. A big move up here and then it kept going all day long. This is different than we’ve had in the past, for a while now.
I am looking at this, and this is meaningful to me. And so what my suggestion is, is, you start to turn your bearish thinking around and start looking at things in more of a bullish way because we actually are in a bull market, at least it’s my version of a bull market. Where is the 200-day moving average? It’s down in the bottom. Where is the 50-day moving average? Well, it’s up higher. Where’s the price? Well, it’s up higher than this.
To me, that’s what bull markets are all about. We are not talking about quick little crossovers, we are taking about a consistent condition that has been in occurrence, or in effect for over 3 months where the 50 is above the 200. We finally got a down trending 200, actually turning into an uptrending 200.
So we are in a bull market, you are just not hearing too many people talk about it yet because we still haven’t cleared this magical 4,200.00 level. But what are we, $64.00 from that or 64 points away from that, and once we get above there you are going to hear everybody start talking about the bull market, and you are going to say, I heard Fitzpatrick talk about this in early May.
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