By: Scott Redler
The market has proven to me that dips can still be bought at the right time. The potent move off of the recent low tells me that this market can make new highs this year! Let’s hope this is the start of a pullback that takes the S&P to at least the 1,085-1,090 area. That will offer a compelling zone to evaluate the landscape: to see if we can hold higher, and to assess which stocks are providing leadership.
The Rundown:
- Tech can use a rest right now.
- Cree (CREE)–I am short overnight and will add through $66 for a move down to the $64.50-65.50 area (p.s. it was upgraded by JP Morgan this morning).
- Research in Motion (RIMM)–I am flat and want to see where it holds. If it can base under that $72 gap area, it can provide a good zone to buy in anticipation of a move into the gap.
- Amazon (AMZN)–the stock is still trapped between $114-120.50. Be patient and wait to see which way this consolidation is resolved.
- Google (GOOG) has no traction right now, but there will be some news from China this week. Keep your ears open.
- Apple (AAPL) was weak right off the open yesterday and could test the $196-198 area.
- Banks had a big move off of their lows, so see where they hold.
- Goldman Sachs (GS) needs to hold $155ish, JP Morgan (JPM) needs to hold $40ish, and Bank of America (BAC) needs to hold $15.70.
- Freeport McMoran (FCX) and U.S. Steel (X) deserve a rest at this point.
- Gold (or the GLDs) under $108.66 could fill a gap down to $107ish.
- Crude oil looks like a short right about here.
- First Solar (FSLR)–I stated yesterday that this will move below $100. It picked up two sell ratings since then and should be well on it’s way to that area.
- China Agritech (CAGC) looks like it put in a short-term top yesterday. I would love to short more to fill that gap at $23.83.
- The market needs to work off this overbought condition. In the next few sessions, we should get a nice buying opportunity. Stay patient and wait for the setup.
