By: Scott Redler
The market gapped up yesterday and never looked back. That is your typical “gap and go.” The XLF took back its 50-day moving average yesterday. The banks have lagged the market’s move of late. As a result, the financial sector has been out of play on the intraday and swing-trading time-frames. This latest move might be the catalyst to put the banks back in play and on our radar.
Goldman Sachs (GS) started this move last Wednesday when it broke through our trigger buy price of $165.50. Today GS will be working on its fourth up day in a row. Bank of America (BAC), JP Morgan (JPM) and Morgan Stanley (MS) all had their first potent up day in months. I think you can stay with these stocks and buy the dips, with the reward coming in the next week or so.
I noted the casinos had their first POTENT up open and they too never looked back. Wynn Resorts (WYNN) still has room to run higher. Las Vegas Sands (LVS) has room up to the $18 area, while MGM has room to $11-12. Their projects in Macau and Vegas are not dead–they will get done. All of these stocks are back on the trading radar.
Big cap tech continues the same story of late:
- Apple (AAPL) looks GREAT, but is now well above our buy prices–$196.50 and $208.70.
- Google (GOOG) should be focused on today–they introduce their new phone–the company/stock has room to $650 before this move is over.
- Amazon (AMZN) still has a double top to contend with, and has been weak–it was red in a predominantly green tape yesterday–let’s watch and see if that continues.
- Research in Motion (RIMM) was upgraded this morning–it too was weak yesterday–I’m going to watch to see if it can hold today’s gap up.
VMWare’s (VMW) chart looks GREAT–cloud computing is the next “Big Thing” in tech. Technically, the stock could break out to new highs. The buy price is $44ish, and could open up the possibility for a swing hold for the YEAR (if that’s what you do). Check out the chart below.
The Rundown:
- Gold–GLD broke its downtrend yesterday. We bought on the dip, leaving us with an average price of around $107.50 in the GLDs, reflecting a price of approximately $1,080 in gold futures. There is still some upside room on this trade.
- Oil–I would back off from here. We sold our long into the strength yesterday.
- Exxon Mobil (XOM) is looking to finally turn the corner. We’ve been targeting it in the $68-69 zone for a buy after this oversold down move. It’s a slow mover, so stay patient.
Today could be your typical digestion day after a big move–so, be very sector and stock specific, and await relative strength/weakness type plays to develop during the day.
