By: Scott Redler
The S&P bounced from 1042 to 1105 in less than a week, so it was no surprise yesterday when we failed to power through resistance on the first try. If market can hold higher at 1077-1082 or above, I do think the next time we try to break through resistance we could have a little more success.
The weakest stocks on the board yesterday were the banks and energy. We need both of those troubled sectors to cooperate if we are going to get a strong push higher to break through resistance. We need this reform bill DONE! Eliminating uncertainty will definitely provide a boost. Tech has been the place to be, with some new move highs and nice price action. A trade and close above 1103 should open the window up for a move to 1120-1140.
TECH is the place to be for strong stocks.
AAPL had a nice move from 242 back to 259. Now it it can hang in this range. I will look for range resolution to the upside above 260.
SNDK was on the cover of Barron’s, which pushed this “go-to” stock to new highs. I think it needs time to set up now.
VMW is still sitting in its upper range looking good. Watch the 71-71.50 for a momentum move if we see strong action.
NFLX had a “rock star” move, knocking some teeth out in the shorts. It’s now a bit extended. We might get a 80-20 trade here for a scalp short. Use 127.96 as the pivot for this strategy.
AMZN was upgraded this morning and is in a nice descending channel. If it can get above 124-125 and hold we can see a long trade here.
MSFT opened near 25.90. We held sold some pre-market and held some; it can still work higher.
BANKS are still lagging, this needs to change for this market to take off.
GS remains weak and composure must change for market to have some power. Watch 133.40 as pivot support, or if they come after it with strong volume (if we see a watered down “reform bill”) but word is it will be stronger than thought.
JPM is still in a descending channel. Stock never triggered yesterday. One day complexion will change, keep an eye on it.
PNC is also in a descending channel. I like the 61-62 area as a potential entry.
BP got hit hard yesterday. I might try and look for a buy set up as we are back to the capitulation levels that I bought last time, but you must have tight stops.
CASINOS group acts well for two-way trades.
LVS has been on my radar for the past week. It made new highs yesterday then sold off a bit, now it needs time.
WYNN needs time.
MGM is lagging with no set up.
GLD has been weak since the push through failure last week. I’d be in tier one at best and watch close.
Futures opening up a bit makes today’s trading set-up a bit tough. I was hoping for a down open to buy. I do think dips are buyable and we will see a move above the recent resistance or at least be over 1000 for Friday’s quad witching.
