Yesterday I came in with a little short on the brain after Tuesday’s harsh sell-off. I was short overnight, added to spy on the open around 117.25- by 11:00 and I was stopped out around 117.50-117.60. It’s okay to have a contrarian-type idea, but you can’t be stubborn if you are wrong. Take your loss and move on. The market bounced back hard and is now near the 1185 resistance area. Banks finally bounced which gave the market a lift. Stocks are still acting well, holding support and working through some upper levels. Earnings season continues and there seems to be some sneaky, but steady bids under the S&P futures markets.
Tech
Apple Inc. (AAPL) is still working off the earnings, creating a new upper range. It seems like in time Apple Inc. (AAPL) will trade above the new 314-315 pivot, then 319 and finally new highs. Support is around 306-308 with lower area around 300.
Google Inc. (GOOG) is still holding the new upper range after monster earnings. Seems like this one has more upside as well. I will try some Google Inc. (GOOG) if it triggers above 617-620 for a cash flow trade.
Baidu.com, Inc. (BIDU) is still holding its upper range into this afternoon’s earnings report. I continue to be tier one long Baidu.com, Inc. (BIDU) with average around 101.50. I will talk about a strategy again around 3:30 for the earnings report tonight.
Netflix, Inc. (NFLX) was a monster after beating estimates yesterday’s earnings estimates. The stock is up more than 10%, and bucked the growing trend of selling off strong tech earnings (besides GOOG). Our community bought the Netflix, Inc. (NFLX) 150 and 155 November calls, and most guys are already hedging up here around 170-175.
Amazon.com, Inc. (AMZN) is still holding its upper level and was upgraded today. Amazon.com, Inc. (AMZN) is back near highs ahead of earnings tonight, and I probably will stay away from this one.
Casinos
Wynn Resorts Limited (WYNN) made a quick snap back to repair its chart and put us in game for a momentum move above 102.50-103.
Las Vegas Sands Corp. (LVS) also snapped back after a quick short. We got a little greedy trying to catch continuation to the downside yesterday, but this leader showed tremendous strength. Las Vegas Sands Corp. (LVS) feels like it wants to continue higher.
MGM Resorts International (MGM) has been the dog in the casino group, but is worth a look here around 11. I went long yesterday and will add to my MGM Resorts International (MGM). I think we can see 11.55-12 easily.
Banks
Goldman Sachs Group, Inc. (GS) is flexing muscles as the leader in the financial sector and is above 160. Our guys have been trading this well. Goldman Sachs Group, Inc. (GS) doesn’t have heavy exposure to the foreclosure mess that is currently weighing on Bank of America Corp. (BAC, Wells Fargo & Company (WFC) and JP Morgan Chase & Co. (JPM).
Bank of America Corp. (BAC) did an 80-20 bottom yesterday, trading through 11.71 and back above. I did buy some Bank of America Corp (BAC) in the hole around 11.50 and added at 11.71, and now think we can see 12.25-12.40ish soon.
Wells Fargo & Company (WFC) and Morgan Stanley (MS) are both bouncing as well.
Rare Earth Resources Limited (REE) has been an absolute monster, but is a dangerous speculative trade if you are not extremely quick and nimble (like Jack). We traded it well from 8.60 to 12ish, now it could use a rest, and perhaps a short for those with that type of time horizon. Also watch Molycorp, Inc. (MCP) in the rare earth sector.
SouFun Holdings Limited American Depositary Shares (SFUN) and MakeMyTrip Limited (MMYT) are on my radar as well for a set up to new highs at some point. These hot Chinese IPO’s must be on your radar.
