The market has traded lower during Wednesday’s session after a promising up open. Futures were boosted this morning by strong earnings from JP Morgan Chase & Co. (JPM), but investors remain cautious. Although the indices have remained weak, many momentum names have come back into favor and are making strong moves this morning.
From the Morning Call, Chipotle Mexican Grill, Inc. (CMG) was strong again early today after yesterday’s news that the company would be opening a new Southeast Asian inspired restaurant chain called ShopHouse. Investors are cheering the news with hopes they can achieve similar success to that of Chipotle.
The casino stocks have been strong, as usual highlighted by unquestioned best in breed Wynn Resorts, Limited (WYNN). WYNN finalized a merger with online poker website PokerStars this morning, which could have played a part in the stocks early strength today.
The Chinese Internet stocks Sohu.com, Inc. (SOHU), SINA Corporation (SINA) and Baidu.com, Inc. (BIDU) have been three of the strongest in tech once again, bouncing back from weakness yesterday. Tuesday’s sell-off had them looking like they could fall out of favor in the short-term, but their resiliency is a bullish sign.
After putting in a doji reversal candlestick yesterday, fertilizer leader PotashCorp./Saskatchewan (POT) continued higher this morning. The group, however, has begun to pull off a bit as the morning are wore on. Today might not be the day for the big move, but after finding their footing yesterday the ferts could soon begin their latest run back toward highs.
Silver, which several T3Live.com contributors have highlighted for a possible pull-back over the last few days, has rested after a gap up. After such a big run, silver has pulled off somewhat this week and feels like it could have more room to work off its overbought condition.
Finally, Apple Inc. (AAPL) continues to frustrate traders looking for momentum, selling off today after its up open. Apple remains undervalued but plagued by several short-term worries. There are better areas to find momentum right now, but long-term investors can feel good about owning Apple at this level, with or without Steve Jobs running the show.
*DISCLOSURE: Scott Redler is long POT, JPM, MGM, BAC, GLD, BBBY.
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