By: Scott Redler
Yesterday the Nasdaq followed through to the upside and this morning IBD, which I read every day, labeled this market back in a confirmed rally. Last time this happened was March 1st around 1120 and the S&P went to 1217. Each follow through does not lead to a new massive bull run, but no bull market has started without one. I think this new rally attempt takes us back to the 1120-1140 area by the end of the quarter, which is the end of this month. At that point we will re-evaluate to see if it’s the right shoulder of a bearish head and shoulders.
Big cap tech held in great and should lead if this rally lasts a few weeks. We will look back in few weeks and see if market confirms this hypothesis.
TECH
AAPL was a nice buy at 252 and a nice add at 260-262. We should have new highs here at some point.
VMW made new move highs last week and held great. Now 66 will be next area for a momentum move
SNDK is also a go-to stock that held its break out. Next area to hold above that could take some time is 46-47.
NFLX also trades well. Next area 110-112 then we should see 125.
CSTR looks good could get going above 56.
BIDU was a nice long over the last few days, but there no defined pattern here. Could be good to go back to highs in 80 area.
RIMM is not a leader but I will buy around 62 for at least a gap fill to 64-65 area.
AMZN is not a leader but could see 135 by month’s end.
GOOG has a buy area around 495 and should see 520 if we rally for a few weeks.
BANKS look decent. They won’t lead but have room.
GS was a nice buy for us around 142-143, and the next buy would be 147. This can see 155 and perhaps 160.
JPM also looks good to buy HERE, and we could see if 41-42 if you can hold it.
CASINOS held in nicely.
LVS might be easiest to trade. I’d buy here and it can see new highs.
MGM might not see new highs but can see 14-14.50 before this move is over.
WYNN I will watch and not trade.
MISCELLANEOUS
OIH had a nice bounce yesterday. I think you can be long this back to 98-99 with some time.
GLD will probably be a bit out of play if we are in rally mode.
Remember, proper entries and exits are still key to holding through some turbulent times.
