By: Scott Redler
This market right now is really frustrating right now for both the bulls and bears. At this time there are a ton of cross currents which makes it hard to trust any direction!
The S&P still sits in its macro upper range, which now stands at 1180-1217. The important support lies in the 1178-1182 zone. Erratic trades like this usually lead to a correction, but some stocks are showing a ton of resilience. There is no need to be early. At this point, I think you need to have taken off most risk and simply to apply a strategy when the market action cooperates.
And now, the rundown:
TECH
There is a group of very strong tech stocks that remain in their upper ranges that could give us clues on future direction.
AAPL remains in its upper range. The earnings gap was tested and held at 565, with resistance at 572. It’s absorbing the big move this year. Some antitrust news is out there, so see if it gets absorbed or has a negative effect.
SNDK has now popped into its upper range after a nice short from the highs. 40 is the low end of the range and 44.80 is the high end.
VMW is hanging tough, very strong in its upper range.
BIDU has also held its earnings gap and the range remains intact.
THE QUESTION IS, CAN THESE QUALITY TECH STOCKS HOLD THEIR UPPER RANGE AND MAKE ADDITIONAL UP MOVES? THESE STOCKS SHOULD BE WATCHED AS LEADERS.
BANKS
GS had a small bounce yesterday after getting crushed- New resistance zone is 150-152 with support in the 145-146. Stock seems to get small oversold bounces- then gets hit again.
JPM is creating a lower pivot area with support in the 42-43 area and resistance at 45. This still has more room to bounce if the market stays tough.
OIL
Watch this sector for opportunity.
BP could see a trade back to the 53-54 area. I am long here. It’s up with Futures down and should be watched for a bounce.
RIG I would trade long vs. the lows of yesterday.
OIH was a great long vs. 120-121. Listen for headlines.
CASINOS
Trying to stay strong.
WYNN popped back up yesterday to keep its uptrend intact after selling off on earnings. Not sure if it can make new highs until more gaming earnings.
LVS earnings are due out Wednesday. The stock still hangs tough, we are just trading it now after riding it long from 19 to 24.
MGM continues to hang tough after soft earnings. I guess there could be more upside.
GOLD I pounded the table last few weeks to get long Gold, now it’s up to you to decide where you should take profits.
