By: Scott Redler
Last week we had our first outside reversal in the indices since our last correction. That is a day to take note of, but not a day to get TOO opinionated. Smart traders and managers definitely cleaned up some of their positions (which is the prudent thing to do). The uptrend is still intact, so we need to see if Thursday gets negated, or if there is downside follow-through.
If we get back to a 60 minute close above 1,172-1,175 this will negate Thursday and squeeze this market back to the intraday high of 1,180 and then higher. IF we get a 60 minute close below 1,160-1,162, we can see the uptrend that started with the February 5th reversal come under pressure and the market will then be vulnerable to a corrective-type move like we saw in late January.
There are still a lot of decent technical patterns to trade–that supports the thesis that flexibility is KEY and that this is not a time to be stubborn.
The Rundown:
- Apple (AAPL) took off Fast on Friday, giving us clues that being short is tricky. It’s now opening at new highs which also should give Bears some caution.
- Amazon (AMZN)–woke up last week and held tough. A trade above $137 could lead to bigger gains.
- Research in Motion (RIMM)–has consolidated since our last buy at $72.20, but earnings later this week so take care first.
- Intel (INTC)–still hangs tough since our $20.50 buy price.
- Cisco (CSCO)–still hanging tough as well.
- Microsoft (MSFT)–wake up a bit–around $30 it could get a bit more power.
- Google (GOOG)–absorbing the China headlines. Nice two-day trade last week. Could try and fill the gap from $568-580 if the market hangs tough.
The Banks–are tricky right now.
- Big reversal Thursday–then they gave up gains on Friday as well. Look here for clues to see if this opening gap fills.
- Goldman Sachs (GS)–was weaker on Friday, but still holding up. See how it handles this upper range of $172-178.
- JP Morgan (JPM)–nasty reversal Thursday, then closed off highs on Friday. Today will be a somewhat interesting day: does it have an inside day, or take out late last week’s lows?
- Bank of America (BAC)–continues to churn higher.
- Wells Fargo (WFC)–continuing to grind higher.
- Citigroup (C)–slowly churnng higher.
- AIG (AIG)–still hangs by a thread–I might try another long if it gets above $35.50.
- The Casinos still look great!
- Las Vegas Sands (LVS)–this was very strong on Friday. It could get some more gains it it can push above $22.20-22.50. This has been a great trade for us since $19.
- MGM (MGM)–very FRUSTRATING–but maybe it just needed more time. I will still look here for a trade through $12.75-12.80 and a larger move to $13.50-14.50.
- Wynn Resorts (WYNN)–also hangs tough above $78. We should see low $80s.
- Gold–still very tricky. I’m stopped out, but a much bigger symmetrical triangle is building up with the level in GLD at around $110. That would be my new entry.
- Oil–continues to hold its upper levels.
Bottom line–it’s never a bad thing to take profits and be prudent. It is a bad thing if you then get stubborn and fight the tape. Today should be interesting.
