By: Scott Redler
Traders and investors always chase moves to the upside, and they do the same to the downside. Market always loves to punish or makes those second guess themselves if they are late to the party.
Exactly two weeks ago the S&P was 1131 and then on Friday they closed at around 1020 about 100+ handles lower. So the prudent market participant must have taken some profits in shorts, and some even tested some very oversold longs. Bottom line, you must have the proper entries and exits to be profitable and stay with trades or market moves.
S&P can easily retest the 1035-1045, and even get back to the 1060-1065 zone. That bounce can happen and we can ultimately still hit the 940-970 level by the end of the summer. But you must tier in and tier out according to your skill-set and experience level to participate the right way in the trade. If you enter late you can get pushed out.
Futures are up today with the investment interest in BP and some key upgrades. Combine that with no blow ups over the weekend and this oversold market gives us a interesting open.
The market has room to bounce. The question is how much. So you should outline resistance 1,2,3 in the S&P and the stocks you trade.
For example:
NASDAQ:AAPL from 279 down to 243 in less than two weeks. Resistance 1 would be 250-251, resistance 2 would be 254-255 and then the line in the sand for the bears would be 259-261. So you need to evaluate along the way.
NASDAQ:SNDK from 50.55 down to big support around 40. Resistance 1, would be 43.50ish and then 44.80-45.50 would be resistance two.
NYSE:GS will be one to watch, as it tries to lead at times. It was upgraded by NYSE:JPM. Resistance 1 is 135.50 then 137 is resistance 2. And a major area is 140-141.
NYSE:GLD after the potent break of the uptrend at $1,225 (and on NYSE:GLD at 199.75) gold seems like it will have more downside.
$1,175 is the bigger uptrend from the 2009 bounce and then the 200 day is much lower. I’d avoid.
If you want more stock price points- check out the price point sheet available to subscribers every morning on T3Live.com!
Download the Morning Gampeplan HERE
