Right now there is a big difference between the Nasdaq and the Dow after strength in tech stocks last week. Also, commodities are trading in their own space right now. There is lots of action out there, but you must have a handle on what is going on. You could have been miserable trapped in the banks and not honoring stops, or you could have went into the weekend with a huge grin owning some high beta tech stocks. Where were you?
The S&P is still holding its upper range but getting very choppy. Trading Futures is not where the money is right now. Every pull-in has been controlled. Micro support is 1162-1165, and more important support is 1148-1155. Micro resistance is 1177-1179, then 1085, then big resistance around 1195-1200.
Tech
Apple Inc (AAPL) had an explosive move Friday after Google Inc. (GOOG) earnings. The measured move for Apple Inc (AAPL) for me was 320; we are opening here this morning. Typically BIG moves into earnings don’t get rewarded after the numbers come out, so have the right strategy based on your skill set and time frame. I will be selling my remainder of my Apple Inc. (AAPL) above 320 today.
Apple Revs for the Run Past 300 – September 13, 2010
Google Inc. (GOOG) was a great trade for us from 485, then a nice (and a little lucky) options play for us Thursday into Friday. Many in the community took the 550-560s,congrats if you were one of them. Google Inc. (GOOG)looks okay for higher prices. It’s back in the game.
Amazon.com, Inc. (AMZN) triggered through 157, and then 162, for a monster trade Friday as well. Amazon.com, Inc. (AMZN) now could be choppy with earnings due later on this week. See how it reacts with Apple Inc (AAPL) earnings.
Baidu.com, Inc. (BIDU) is still consolidating for the 4th straight week, and we are very bullish on this stock. Trigger buy is 101-102, make sure to keep a close eye on it. There are some high hopes for Baidu.com, Inc. (BIDU) earnings after Google’s report. Baidu (BIDU) earnings are due out on Thursday.
Netflix, Inc. (NFLX) is very quiet right now. The trigger if it wakes up is 155 -157, but it might need earnings to get there.
VMWare, Inc. (VMW) has a broken chart, and chasers have a broken heart. It is just a trade in new range both long and short.
salesforce.com, inc. (CRM) is another cloud name acting the same as VMWare, Inc. (VMW). The sector needs some time to repair, but this is one of the stronger names.
Banks have been very weak, largely due to the foreclosure crisis that threatens big losses attributed to repurchases.
Goldman Sachs Group, Inc. (GS) is the strongest in the group is but still hard to trust. It has had a small three day pull in and is worth a look vs. Friday’s low of 150.60 (for an 80-20 trade).
Bank of America Corp. (BAC) stopped us out at 12.90ish, and looks to have heavy exposure to the foreclosure fiasco. A report from Branch Hill Capital said the stock price could be halved in a worst case scenario, so I would avoid Bank of America Corp (BAC) altogether right now. I would only be interested in a small buy if there was extreme capitulation.
General Electric Company (GE) we caught the trade from $16.50 to $17.30 trade, that’s all I wanted for a cash flow trade. It will need a lot of time again to set up, but should ultimately get back the to $19.50 area.
A Calculated Entry in GE – September 27, 2010
Casinos
Wynn Resorts Limited (WYNN) had a big move for us through 93, and now it has an big bull flag at 103-105, that could trigger another trade to the 110 area. After such a strong run, we will take the trade in smaller size.
Las Vegas Sands Corp. (LVS) is hard to trust up here, but as long as it continues to trade higher we will not fight the trend. As we extend higher, each trade we take we will take quicker profits and size down.
MGM Resorts International (MGM) blasted people as they did a surprise secondary offering around 12.65 that did not get supported. I took home a little on close Friday, and I will load up if it can get back to 10.55 in the next day or so.
China MediaExpress Holdings Inc (CCME) we had this stock at 8.50-9.25, sold most at 11-12, and it went to 16+ Friday. Wow.
SPDR Gold Trust (ETF) (GLD) caught a nice three day long, but now I think it needs time to re-set up. It’s getting very tricky up here.
