The $SPY Knows How to Chill

Below is a chart of the $SPY that was posted last week BEFORE the upside break of this upper black dotted trend line, along with my thoughts posted on the chart. Well, we have now broke through, and we are a bit overbought. Going sideways/flat is quite healthy and exhibits healthy progress.

In fact, the significance of this upper black dotted trend line is quite significant and anything but a rest here after an upside break would be suspect. So as of now, the $SPY is doing exactly what it needs to be doing if we want to test that upper purple trend line.

So chill, take a lesson from $SPY

Have Solar Stocks Bottomed?

I doubt it

Trade Idea on Ebay

Below is the daily chart of $EBAY. Notice the inverse head and shoulders continuation pattern potential inside of bullish rectangle base pattern.

As well, fundamentally, they seem strong to me. They have very little competition in the U.S. and are now going to be competing with Groupon, delivering emails featuring deals. They have a significantly stronger user base than Groupon and can target their already existing user base with these electronically sent coupons.

Moreover, they have over 5 billion in CASH, and a dominant business that could support this venture easily. But what I think is very big for $EBAY is that they recently acquired Hunch.com. Hunch.com is a site that presents a quiz to its members in order to determine their shopping interests and uses that knowledge to recommend items that the customer may buy based on their answers and previous choices. This acquisition by Ebay of Hunch.com costed $EBAY 80 million. Relatively minuscule for $EBAY( they have 5 billion in cash).

$EBAY can now step up the electronic coupon business into personalized electronic coupons. I am a member of Groupon and Living Socials and I am uninterested in 98% of what they send. With this move by $EBAY and their game changing acquisition ( not to mention, their user base, their popularity, and the fact that their main source of revenue is widely established), I love $EBAY.

Pair that with this daily chart of $EBAY, and I like it long here: