By: Scott Redler
We saw some selling in the indices yesterday, but the tape felt a lot weaker. Today we are opening down a bit. Some important support is 1200-1206, then a very big level around 1194-1196. Uptrends are all still intact, but as I said yesterday, don’t fall asleep behind the wheel.
TECH
AAPL was a nice short off the open yesterday, and if you were looking for that day and a half reversal strategy, you are getting a nice cash flow trade. I will cover on the open. Decent support is in the 260-264 area, then a huge level is at the prior high of 251.
SNDK also gave us a nice short cash flow trade. I did short at 44.80ish as it pushed through and failed. I will look to cover in first 30 minutes but I do think you can see 42-42.50.
GOOG has been acting very bad. Now, GS takes it off the conviction buy list. Nobody I know owns it. The 520 level is pretty big support.
RIMM was a nice surprise yesterday as they came out with news of the new operating system coming quicker. The stock acted well. I bought some on the fly around 70 and will hold and see if it develops into a bigger move.
AMZN got saved yesterday but not sure if it can make a big move. It should spend some time in the range.
BANKS
GS broke the important 155-157 area. If you wanted to be short, you had to act quick. It’s down a dollar today and the big boys are on the hill today. 145-150 is big support. If they buy the banks into this I will nibble if it goes back above yesterday’s low around 151.52, but it needs volume.
JPM is coming into its 50-day MA. The stock is now well off highs and is worth a look for a long into this area. I will watch close for a cash flow long.
BAC is still seeing some pressure with banks. 50 day is in the 17.40 area.
CASINOS
Still very strong and exceeding our expectations. It’s hard to be long or short right now, but watch price action.
OIH has been a nice long for us the last few weeks, but now it needs a bit of a rest.
IRE has seen all the “bad” news leave the stock. Fundamentally its considered one of the best European banks and should see 13-15 by year’s end.
BPOP let’s see if it holds 4 and get some play to 5 area.
AIG did a push through failure through 45, then came back below. Some took it home short based on the reversal strategy. If so, your getting paid on this downgrade.
AONE is a frustrating stock but there are some positive notes on it. It’s been crushed and could be a decent buy if it gets above 13.25 and holds.
This is a very tricky time as most good earnings are all out and we are heading into big resistance. Need to be very selective both long and short.
