By: Scott Redler
After Monday’s hard distribution day the bears took control and this market is their’s to lose. Yesterday the market had small bounce and today the futures are opening higher. If they are to have any power, the Bears need to make sure they don’t let the bulls take back the 1202-1206 area. There is a new floor of support that now stands in the 1180-1183 area. I attached the chart of the S&P that you should all take a look at.
TECH is still very mixed as earnings season winds down.
Most of the strongest stocks just had a three day pull back and will try and create a new upper range. I attached a chart of AAPL as an example.
AAPL held it’s earnings gap in the 256, which was a nice scoop if you wanted to buy the dip. Also the short strategy from a few days back worked well for the extended two day short set-up.
GOOG is trying to hold the 520-525 area, but is lagging the group.
AMZN is trying hold important support at 139, so that is the new important support.
SNDK was a great two day short and now it also will try and hold and create a new upper consolidation.
BIDU- WOWOWOWOW! Good to see a stock make historic highs. Stock Market works if you pick the right stock and trade it well. Some shorts getting teeth knocked out, but they deserve it if you were short into earnings.
VMV also needs a high level rest.
BANKS
GS on Monday I said it could be time to “buy the news” as the head honchos headed to the hill. Stock now is at 159, a nice little target buy. The easy bounce is over and big resistance is at 260-264. Just watch price action.
JPM had a big down move from 48 to 42. I’ve been buying this over the past two days. I think it can bounce to 44.50ish, then It will be tough.
BAC also had a small bounce.
FAS will be worth a look for a sell set up in the 106-108 area.
IRE is one crazy stock. It went from 10.50 back to 8.65 and now opening at 9.35. If you have too much size you can get hurt (I got stopped out). But those accumulating positions are doing well for a move later this year. Not my type of strategy now.
CASINOS are holding onto their upper ranges. They have been with great two way trades both long and short. We rode LVS from 19 to 24, and now it’s choppy so just watch price action.
COMMODITIES
Gold broke out and seems to want to go up when the market goes down. It might rest here.
Oil now trades with S&P.
Overall, the next few days will be VERY important, so stay on your toes.
