By: Scott Redler
Friday’s reversal amounted to a very weak day Monday giving you clues that if you made money in the bounce, take your money and run. Today’s down open could be very dangerous. This is not about Europe in my opinion. This is about the possibility of WAR between North Korea and South Korea.
S&P levels to watch today are the February 5th intraday low of 1044, then 1030-1036 and finally major support at 1020. If we bounce early and can get a 60-min close above the Friday low of 1055, it will take some pressure off stocks temporarily.
Will the go-to stocks hold upper ranges, or will they “throw in the towel”?
AAPL look to see how it handles the 235-240 area.
SNDK 40 area is very important.
VMW 59-61 is the support of the upper range.
BIDU 66-68 is important.
AMZN has a huge gap to defend. Watch the 114-117 area.
NFLX 95-98 is the crucial level.
If the above group of stocks can hold their upper ranges, there is a possibility today’s down move will not be too harsh, and we could see a short term low around 1040-1050. If these stocks break, we can see 1020 today.
BANKS had now follow-through after a big day Friday and were weak all day yesterday. This gave us clues that there was more pressure to come.
GS is always a good one to watch on a day like today. Can it hold the 134-135 area?
JPM also was good Friday. See how it handles 37-37.50.
BP has been CRUSHED. OIH has been crushed. I would watch BP to see if it finally gets a bounce or goes positive.
GLD was worth a look on Friday around the 20-day. Not sure how it will react today. If a war breaks out, countries might desire a safe haven for liquidity and Gold will become a must-own. I am in this from Friday but will watch price action close.
KEEP IT SIMPLE TODAY! Today will be a huge day of opportunity. Although the worlds problems are scary, we cannot solve them. We need to protect ourselves and our families. You do that by staying disciplined, by following the rules, and living within your means.
