By: Scott Redler
After a week of erratic trading the uptrend we’ve isolated over and over again snapped! It should not have been a surprise to anyone, as there were several distribution days and the market was filled with headline risk. Spain became the latest country to face debt concerns, and fears of Euro Zone contagion became too much for the market to take.
I do feel we are now in the midst of our 5%-9% correction. Watch yesterday’s low to see if we can short through it and maybe a trade back up later today just for a trade. But Overall for macro longs I don’t think you need to buy until we at least get down to 1140-1155 in the S&P.
TECH
AAPL is still hanging on to the post-earnings upper range. We’ve had four tests of the 256 area. I think if it gets there again and breaks and we can see a quick move to 251. Then I would look for support.
SNDK is still holding its upper range. See if it holds the 40 area.
GOOG has been the weakest stock during this move so it deserved to get pounded through 520-525. I hope you acted quick and made money short. It’s down a little this morning and I’d cover, but it could easily go to 480-485.
BIDU hangs on to it’s range like AAPL right now. See if that can continue, but I’d be careful here.
BANKS
GS actually had relative strength yesterday. Watch price action today. The new range is 143-144 and resistance 152-154
JPM is now in the lower end of the new pivot area. I’d watch 42. JPM is a bounce candidate for me.
CASINOS
WYNN looks like a short after some choppy action after earnings.
LVS now seems toppy after we rode this from 19 to 24.
COMMODITIES
BP, our long strategy from Monday around 48.50-49 is working. I am taking off some on this up open and the rest around 52.50-53.50.
OIH is getting oversold. I would cover shorts here as it tests it’s 200-day. First time usually holds, or breaks, steals stocks, then comes back up.
GOLD I sent out notes to sell half your GLD around 116.20. If you took some off there you have the luxury to buy some back in the 113.50-114 area for a trade.
I will be on “The Call” with Larry Kudlow and Melissa Francis Nat 11:00am EST today if you’re by a TV.
