By: Scott Redler
Finally the market let you make some money if you bought stocks “higher”. It took some time but finally the S&P broke through the 1087-1090 area and now we are at the 200-day around 1103.
After a 60 handle move off the lows, this is probably the time when everyone gets very bullish, which makes me laugh. YOU DON’T CHASE EXCITEMENT, but that doesn’t mean we can’t buy more when the opportunity presents itself.
Short term we have resistance at 1108-1112, then I do think we can build that right shoulder which would be 1120-1140 over the next few weeks. That’s when we will have to take a VERY HARD LOOK at how the market is acting and what the headlines are.
SNDK had a successful breakout and is at new highs.
VMW was the second go-to stock to make new highs.
AAPL is opening at around 259-260, an area where I will sell some but hold a few for possible continuation.
NFLX has an area at 108-110 that could be ready for action if it pushes through and we hold up.
MON seems like it capitulated yesterday. It was downgraded this morning (this guy clearly earns his paycheck). I do think you can get long vs. yesterday’s lows and at some point the gap will be filled into the 52-53 area.
GS held 143 yesterday and is getting some follow through.
JPM had a nice quick move through the 39.50 buy area.
Now is NOT THE TIME TO GET AGGRESSIVE. It’s a time to take some profits and enjoy a nice long holiday weekend.
