By: Scott Redler
All the kings horses and all the kings men are trying to hold this 1040-1050 level again. This action is getting old! After closing on the lows again yesterday, we are now gapping up 10 handles or so. BP is up $3 with rumors that Buffet might file on it. The sector that was CRUSHED with capitulation type volume and action yesterday. See if BP holds up early or fades.
S&P made another lower high yesterday at 1077, let’s see if we get another one today
or if that trend changes. The major support level at 1040-1050 still intact for now, but A LOT of people are starting to talk about a break, and I’m concerned that the next time the level is in jeopardy, there may not be many aggressive buyers left.
TECH is showing fatigue and has lagged in the last week.
AAPL is down 5-6 days in a row and acts weak. Guys are making money shorting every gap up. Not sure how long that will continue.
SNDK had a false breakout and is back in it’s base. Not compelling.
VMW has made such a run, it’s hard to initiate a new position here. If you’re still long, use 66 as your stop.
AMZN has been a good short for us. Our last short price was around 122, and we need to see if it holds below and then tests the old gap of 110ish.
BIDU broke its long term uptrend yesterday and is opening near that level on the gap up. Some traders will look to re-short that test of the 69-71 area.
BANKS are still bleeding. I think the hill will be trying to hammer out the reform bill so listen for headlines here.
GS has no real tradable action here but just trickles down. Keep it on the radar today.
JPM can’t put two days together. Watch 36.50-37 as important support.
BAC is trying to hold 15.
CASINOS are still holding in decent.
LVS has been the best for two-way trades. There is o real compelling pattern, but trades with futures.
OIH was strong yesterday until the bankruptcy rumors started going around on BP. If BP holds today, this ETF has room back to 97-98 range.
Gold on a micro level had a push through failure on Tuesday, which was short term bearish. On a bigger time frame I think gold is fine. But If GLD breaks 117-118 we might see a complexion change so put your stops there.
This market is frustrating. It’s for the quick active trader only. Buying vs. the 1040 level has been working for past few weeks, but it’s getting old. The bounces are getting weaker each time, but we are still holding major support. We will be watching closely to see how this plays out.
