By: Scott Redler
Get excited if you switched gears last week and went from short to flat, or even better short to long, Switching sides requires a lot of humility, but broken patterns can give you quick, powerful moves because shorts get trapped. If you’re stubborn, though, you could end up being one of those scrambling shorts.
We are now up almost 6 days in a row, which makes buying the excitement NOT prudent, but trying to pick a top is an art. 1090-1094 is a spot to watch close, then 1100-1103. Market held in well yesterday and is now getting a push with AA numbers.
Tech
AAPL responded well on the reversal day, it now has a 3 day inside range 255-261 I will look to see this resolve to upside at some point.
SNDK was upgraded yesterday and got “back in the game” after yesterday’s move into today. I would let it re-set up.
VMW looks great, nice move since our long around 62. It’s holding up great and could be candidate for new highs. But this will probably take place around earnings.
BIDU I’d avoid for a few sessions- make sure it hold 70 area.
GOOG had a big bounce, but now will get some resistance around 480-485. I’d sell some longs into that area.
AMZN big bounce back to 120ish. I will look to short this today in the 121-123 area for a trade.
NFLX looks good and acts well with market.
BANKS are interesting
GS has been trapped in a downtrend, and it could Ignite to the upside. 138.50-138.75 is BUY ZONE, needs volume and close above, then we can see 143-145.
JPM looks good on it’s way to 40-41 earnings out Wed. morning.
BAC I’ve been long since 14.40. I will sell some here 15.43 and hold some back to 16ish.
CASINOS have been weak, but if this rally keeps moving forward. . .
LVS trigger buy 23.70ish for a move to fill gap back to 24.50-25.
MGM is the BIG laggard, but above 10-10.10 we can see 10.70ish.
SHLD I listed this last week to buy 59.51 now it looks like it can get to 70ish, but sell some along the way.
CNAM- I am long this little Chinese stock and think it can get back to $4 -$4.25 or higher.
GOLD I sold the GLD around 119.77 and this needs more time.
I think it’s more prudent to sell spy 109.40-110.20 or even short if you can handle it for the first time back at this level. But take caution. We’ve seen what this market is capable of.
