By: Scott Redler
Friday’s harsh down move did not lead to the breaking of the uptrends in the indices.
Markets gave us clues early with the strength in GS and some other banks during the trading day. Today, the markets are getting some follow thru to Yesterday’s reversal.
Tech is Mixed
AAPL was a nice short early yesterday then became a better long in the afternoon. Earnings are tonight, so it will be interesting.
IBM earnings were last night, and they were solid with good guidance, but the stock is down 2.20 with analysts worried about margins. Will the markets look at these announcements with the glass half-empty or half-full?
AMZN held the 140 support and has earnings Thursday. The chart still looks okay, but I think the market will want to see if AAPL can blast off and make new highs and hold before they let this one go again.
MSFT was a nice trade for us since 29.70 and is holding well. Earnings are Thursday, and I’m sure eyes will be on IBM to see if they fill gap or trade it lower for clues on how to deal with this.
VMW is trying to hold upper level and earnings due out soon.
Banks
GS was a great long yesterday with limited risk—and it’s up 2.77 now around 166. The next big resistance would be 170ish then 174. See if gains can hold, I will look to sell the 170-174 zone.
JPM was a great “sell the earnings” play, but now it is not compelling.
BAC is the same. We recommended selling Friday, maybe its time to nibble back in.
IRE’s chart is setting up nicely again. I’m long Tier#2 and will add if it can get above 9.90-10 and hold – for a move to the $10.74-$12.00 area.
Others
MEE reversed yesterday could have some more room.
POT has reversal potential, it’s up a bit and has room.
Casinos
LVS worked out to be a great short from 24.75 to below 22.50, but now it’s choppy.
WYNN was pumped by Cramer last night and has held prior the prior breakout.
MGM was upgraded by GS, but no clear pattern unless you bought dip yesterday.
Tape is getting choppy and dangerous, make sure you take quick trades in both directions.
