The market took the day off yesterday with a lot of mixed action. High beta tech is still holding up, but is hard to trust up here with more than tier one. Banks continue to be a drag, and could get worse if they break this lower range. I see only very stock specific trades and they seem to be B-B+ set ups at best. My go to stocks are up a ton from the calculated buy prices but are very hard to sink your teeth in now. That’s when I take it easy, look for pockets of volume and do some “hit and run” type trades. It would be nice to see if we can continue to hold the 1130 range and put another high level consolidation so we can add to the leaders vs. looking for laggards.
Tech
AAPL had a big move from our last two buy prices. Now it’s marching forward towards 300. Yesterday was first “red day” in a while but not severe at all if it can hold 287-290. I will add a cash flow trade if we blast through 295 for that trade to 300. I will buy the dip if we can test the 279-280 recent breakout.
AMZN took the day off yesterday, which was well deserved. It’s 20+ points from prudent buy. Would love to see if can hang here, then go after again. Or I will buy more on dip if it tests recent 52 week high in the 150 area.
NFLX is an example of a stock taking the day off Friday. It had a small down open yesterday and then went positive and got strong. As of now these stocks are only taking a day and half off. So being cute and short, is not making you money except for a quick trade.
BIDU was a rock star yesterday as it is now 15+ points from our last macro buy of 87-88. It extended big time with shorts capitulated. Today might be the day for the “cute short” if it pushed through yesterday’s high then trades below 104.38. I will look for a negative divergence and find this trade today.
CRM is lagging this last up move- watch 116-116.50 this is the most recent floor of the last few weeks. If it breaks and closes below it can be in trouble.
VMW still churns along but no big set up in a while, still holding 85.
GOOG met our last resistance target of 535-538 after putting a technical buy on it around 485. I left a lot of money on the table here.
Banks are a drag. They don’t act well. If they break recent mid level lows it could put pressure on indices. We don’t need them to lead, but it would be positive if they would not drag.
GS needs to hold 144-146.
JPM needs to hold 38.50-39, which is mid level support.
Casinos are mixed.
LVS was upgraded today. I would not buy this upgrade; it’s been a long road. There’s been three macro buys from us at 19 then 24, and recently around 27. Now around 35.30-35.50 is a time to take profits. And maybe even get short.
MGM was a great trade for us yesterday. There were multiple upgrades and Hong Kong listing. We grabbed quickly around 11-11.10 and will stay with and see if I can add through yesterday’s high of 11.48 for a move back above 12.
Drillers
RIG was a great trade yesterday, I was a day early on Friday, but gave guys time to buy. It triggered through 61 after playing around yesterday.
BP I am in tier one and will stay as long as it holds 37.80. Trade doesn’t trigger until it triggers above 39 and closes above level on 60 minute basis. Being early in laggard set ups can be annoying.
Gold opening lower a bit, as long as it holds $1265-$1270 area it’s fine. It’s been a big move.
CCME acting better.
KERX is an interesting chart.
Solar stocks are perky.
Keep it tight and size down at these levels. It’s not worth taking a big loss trying to capture some follow through.
