By: Scott Redler
The market just had a very nice calculated move back to 1120, about 110 handles from the 1010 low and 80 handles from the 1040 RedDog Reversal. The oscillators are very overbought and we could be in the process of working this off. The S&P might just trade in this new upper level of 1109-1120. I would like to see a move through Yesterday’s low for a nice “trading short” back to test 1095-1103 area. (I am short Tier 2 SPY) I will add if we get a 15 minute close through 111.11. I do think that would potentially be a dip to buy if the “re-test” is successful.
TECH
AAPL was a great trade for us yesterday thru 260.50. The action was sluggish though. I have tier one left, if it were to go through yesterday’s high of 264.80 I will add more for a cash flow trade to 267-269 on a micro level. But I will watch price action close.
BIDU was a great trade thru our price of 76. It did stall a bit in front of new highs of 82.29. I would love to see a rest then a nice trade thru that pivot high.
VMW, our stock of the year, continues to impress. We’ve had great entries and trades here. With a Red Dog reversal entry on July 1st around 62.27. It is a bit tricky up here for “traders” trying to put a new upper level. Needs some time
AMZN had an impressive move to take back the earnings gap. The more I read into it, the more I wish I had entered that night. Some say miss is due to adding fulfillment plants and hiring. With time we will have a nice trade through this downtrend that does stand around 117.50-119.50.
RIMM is trying to set up again. Some news of a new product release August 3rd. It could be a laggard buy here around 53.50-54 but needs to clear 56 for momentum. If you buy, put a stop in at 52.
NFLX crushed earnings, but no bounce yet. It’s creating a lower floor to trade against 101-102, if it breaks could see another leg down to 94-97.
BANKS
GS gave us a few good trades starting at 138.50 now it seems to be flagging. This new mini range is 144-147 see how it handles this area.
MS holds gap from earnings but no new action yet, 26.44-27.50 is the new range.
BAC is a laggard I would stay away.
JPM could use a rest.
CASINOS
LVS reported decent earnings, not sure if it is enough to be a catalyst higher. Our last buy was 22.75 if your still long. Take some profits around 26.
MGM last buy was 9.20-9.40 it’s now 11.30. I think easy move is over there. I would take some profits if you still own it.
FCX was off yesterday with earnings from X. 68.50 needs to hold, if not then 65.
X had lacklustre earnings, and the stock could have got hit harder but did not. Watch 45 as support.
GOLD, we got stopped out of our GLD at 199.77. I am now looking for some trading opportunity here. We can see a RedDog reversal through 113.21 if it transpires. Or we can see how it handles the 200-day around 112. My gut tells me they break the 200day at some point to steal all the stock by triggering a ton of stops. THEN we get a great entry for a trade.
