This thought was quickly destroyed as seen by the trend up day. The SPY made a morning low of $134.33 and traded up to $135.97 by the end of the day. Like I said yesterday, the uptrend is still very much in place and shorting this market as a whole yesterday would have been an amateur move. One day does not make a trend and tops are always harder to call than bottoms. Casino stocks continued their rampage today. Las Vegas Sands, Mel-crown Entertainment and MGM were up 2.34%, 2.29% and 1.3% respectively. MGM seems to have no problem going directly up in a straight line. I would watch this name for signs of weakness and a trend line break. The July high on MGM is $16.05, but if the overall market rolls over, I believe a move back to $12.40 would not an unrealistic scenario. RSI is a very basic tool, yes I know but on a 14 day RSI, MGM has bearish divergence. Microsoft soared higher today and was up over 5% at one point. Stock closed up 4% to $31.25. Price really does have memory. The highs on MSFT on 12/31/09 were $31.50 and $31.58 on 4/23/10. Today the stock touched $31.55 and then sold off during the last hour of trading. You want to see a break of that $31.60 level on volume for the MSFT move to continue higher.
Written by Cameron Patrick
@Cam_Patrick