Morgan (MS) & S&P 500 (SPX)

NOTE: Click on charts to enlarge, then click on it again for further enlargement. Use left back arrow to get back to the narrative.

MS still is trading within the Rising Wedge (pattern in blue), so the upside target of 31.25 still is IN PLAY, but I sold it at the close when it got back to Unchanged on the day because its performance was poor basis the benchmark S&P 500, which recovered from the morning selloff and had an upside technical breakout. Stocks don't "have to" perform in tandem with the general market, but I'm not pleased when I'm long a stock that languishes all day when the general market it rallying.



The two charts to the right are 10 Minute intraday charts of the S&P 500 (SPX) and Morgan Stanley (MS). The white arrows on both charts are the lows in each on the morning selloff. Notice that the SPX made a "higher low" at #4, then broke out of the triangle to the upside. MS made a "lower low" at #4 and barely made it back to breakeven on the session. UGH.

I also made a play yesterday in sector-related Goldman Sachs (GS), figuring that if the market was showing some juice (meaning that the S&P 500 had broken out of its triangle to upside), Goldman would at least have a decent bounce off its session low. It was no good. Goldman barely budged when the market rallied, so I sold it, too, for a small gain. Goldman was weak into the close and sold off toward its session low.

Gain on Goldman: $150. Gain on Morgan: $250 (entry posted yesterday). Gain on the session: $400.