It’s a new beginning for everyone in 2011. On this first trading day of the year, futures are giving us a nice 10 handle gap up to extend the December gains. The market became very stock and sector specific in December and I expect the same to continue. The S&P is opening above 1260 and if today’s gap holds we could easily see 1275-1290 this week and possibly dash for 1300 before the month is out. If they open us up today and they fade them, it could create a volatile first few days of the year.
Tech
Apple Inc. (Nasdaq:AAPL) was very quiet the last few weeks of the year as I guess we didn’t have enough volume to support the big ones. Let’s see if that changes. I went out long some AAPL into the new year. If we hold 324 today and push through highs, maybe it gets going again. This is one to watch to see if today is a gap and go.
Baidu.com, Inc. (Nasdaq:BIDU) is still weaker than the rest of “go-to” stocks. The stock broke $105-$106 and now has a lower level range in place and seems to be breaking down a bit. The stock closed on the lows Friday, if you’re looking to be short something. This is one to watch if they start selling off. Then if it breaks 96ish we can see 200 day at some point into $85-$86.
Netflix, Inc. (Nasdaq:NFLX) also seems weaker than the past, this is one to watch also if it starts to close this up open. $75-$76 is the big area that on Friday it started to breach.
Amazon.com, Inc. (Nasdaq:AMZN) was upgraded this morning and is still holding upper range but not compelling.
Cisco Systems, Inc. (Nasdaq:CSCO) still looks good as a value play.
International Business Machines Corp (NYSE:IBM) couldn’t go in last week or so of the year but might try again with new money.
Casinos look good
Las Vegas Sands Corp. (NYSE:LVS) was strong Friday so I bought some and will see if I can add today. Stock had a nice corrective move from $55 and could move again.
Wynn Resorts, Limited (Nasdaq:WYNN) is holding $100-101 this seems like we can get a cash flow trade if it can break thru $105-106 and hold.
MGM Resorts International (NYSE:MGM) some nice trades and frustrating trades in the last month or so. I stayed long and added Friday, now it’s time to see if it can break above $15 and hold to make a move through last year’s highs.
Banks were my focus of December and still look good.
Goldman Sachs Group, Inc. (NYSE:GS) gave us some nice trades from the lower $160 level. Stock tried to break through $170-$171 and wasn’t ready; now it will try again. Hope you didn’t get stopped out.
JP Morgan Chase & Co. (NYSE:JPM) got a very methodical move up from my first buy in the $36-$37 area, and now seems ready to attack $44-$45.
Bank of America Corp. (NYSE:BAC) also performed well as we listed it three times in December. It is now over $14 and hard to buy here but still on the move.
iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI) I sent a note that this foreign index might have hit a low and I see I a good entry. If you bought tier 2 perhaps sell a tier here.
SPDR Gold Trust (ETF) (NYSE:GLD) we saw a nice wedge here last week, and when China raised rates and the market yawned, it gave us a green light to buy and now looks ready for new highs. Hard to just enter today but still looks like higher prices.
Halliburton Company (NYSE:HAL) and Schlumberger Limited (NYSE:SLB) I sent out last week, they look like new highs will happen today or tomorrow.
Agricultural sector last week was our focus, and they had a nice move. Potash Corp./Saskatchewan (USA) (NYSE:POT), CF Industries Holdings, Inc. (NYSE:CF), Monsanto Company (NYSE:MON), The Mosaic Company (NYSE:MOS), Intrepid Potash, Inc. (NYSE:IPI) and Market Vectors Agribusiness (ETF) (NYSE:MOO) all had a nice move and should continue.
iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT) still can’t get through $94-$95 area if you did bottom feed there. I hope your flat and let’s see it they turn lower now.
*DISCLOSURE: Long BAC, MGM, LVS, AAPL
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