By: Scott Redler
GO SCOTT BROWN–(you can read between the lines as to how I think). Anway, lots of charts repaired themselves yesterday, but the lack of volume was a bit concerning. Last night, China’s government said that banks should not lend for the rest of the month. This, coupled with Euro weakness is causing a Dollar bounce and some selling in commodities. Also, JAL was allowed to enter bankruptcy. While I don’t hear much talk about it, I do believe the bankruptcy is a big deal.
Today the market needs to hold at least HALF of yesterday’s move to validate new highs for late this week. That would require that somewhere in the 1,124-1,125 area on the S&P holds as support. Watch closely as the S&P approaches this area.
The Rundown:
- Banks are up a bit this morning–Wells Fargo (WFC) was good, Bank of America (BAC)…blah, and Morgan Stanley (MS)…blah.
- Casinos continue to hang around. I will hawk them for any sign of an follow-up move.
- Apple (AAPL) looks ready for new highs–I am long and will add if we can get a 60 minute candle to close above $215.50.
- VM Ware (VMW) looks ready to break out again from the $46-47 area. It NEEDS VOLUME.
- Amazon (AMZN) staged a mini-reversal. I will look long for another small up move.
- Baidu (BIDU) must be watched to see if it can hold that big gap up at around $425-435. It was a nice short yesterday, then an even better bounce.
- Google (GOOG) earnings come out tomorrow so this could be tricky until then. The company did say that they would hold back two phones in China, so I will be looking at stocks like Research in Motion (RIMM) to see if they can get a lift.
- The Oil Service Holdrs (OIH) is also hanging tough, with stocks like Apache (APA), Schlumberger (SLB) and Flowserve (FLS) looking to breakout. BUT, we need to see what happens with oil today.
- Gold had a very tight wedge. As of now, it is opening to the downside. See if the selling intensifies.
The trade is getting a bit choppy. In the beginning of the year, stocks would close on highs and continue the next day, or close on the lows and open down. Right now it’s more of a mixed bag–there is not much consistency on a day-to-day basis. The market is trapping traders in both directions and it’s getting on people’s NERVES.
Be patient, wait for patterns, and DO NOT get caught in the choppy action.
