The markets finally saw its first meaningful red day in more than two weeks Monday, trading lower after US special forces yesterday killed Osama Bin Laden. The news was met with relief and celebration at United States landmarks, but the markets were unmoved, perhaps even jittery due to the possible increased terror threat. Any way you slice it, the markets were extended, and some downside action would be healthy at this stage.
Apple Inc. (AAPL) remained weak after Nasdaq rebalancing, trading down to support in the $346 area. Amazon.com, Inc. (AMZN) was one of the strongest stocks in the board, continuing to make new highs with another 2.75% gain. Perhaps the most bearish pattern setting up in big cap tech is in Baidu.com, Inc. (BIDU). BIDU, in contrast to AMZN, sold off despite an earnings beat last week, and is now testing a major support level. The price action suggests BIDU could be one to get hit hard if the market pulls in. Silver got hit hard over the weekend and then into the close, with the iShares Silver Trust ETF (SLV) closing down 8.6%.
Watch the T3live.com Daily Recap with Scott Redler below.
*DISCLOSURE: Scott Redler is long AAPL. Short SPY, SLV.
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