By: Scott Redler
…be careful what you wish for.
Everyone wanted to see volume. Well, yesterday’s increase in volume led to a distribution day for all the indices. 1,177 held yesterday, which was somewhat important, but can it hold again today? If not, the market must hold 1,170-1,172 otherwise the technical strength will be in jeopardy. At this point, I think everyone in this community has cleaned up some risk and is trading in a stock-specific manner right now as we enter this tricky inflection point.
The Rundown:
- Apple (AAPL)–is churning higher, but getting a bit erratic. The last technical buy price was at $226-227. $239 is important for this stock today. See if it holds.
- Research in Motion (RIMM)–is creating a new lower channel as it remains in the penalty box post-earnings.
- VMWare (VMW)–remains in its upper channel, but no additional gains yet.
- Baidu (BIDU)–great trade two days ago above $605. Now it has a small tipping tail. This could lead to a little rest–something BIDU rarely does.
- Intel (INTC)–is just sitting in an upper flag. Nothing compelling.
- Amazon (AMZN)–this still has a decent setup. IF the market hangs in, I will be buying AMZN on a trade through $136-137 with volume.
- AIG (AIG)–was a MONSTER for us yesterday. I was able to buy some this morning at $39.10 and it’s already above yesterday’s highs. It has room to the $42 area.
- The Casinos–they’ve taken two days off after a great trade!
- MGM (MGM)–this is also consolidating well. As long as it holds $12.80-13 it could go again.
- Wynn Resorts (WYNN)–still above $80 and creating another flag pattern.
The banks are mixed right now:
- Bank of America (BAC)–gave us a great trade, now it needs time to setup again and it should hold $18.35 if it’s any good.
- Goldman Sachs (GS)–gave us a great 3-day move. It tried to be strong yesterday, but I will look to see if this can go positive this morning. That will give use clues as to whether the market can absorb this down open.
- JP Morgan (JPM)–nothing here.
- AOL (AOL)–great trade for us yesterday through $26.60-27. It could go a bit higher if it gets through yesterday’s highs of $27.71 but could rest a bit.
- Retail had some big numbers this morning, but I don’t really trade them.
- There is lots of news in the airline sector, with a rumored merger between UAL Corp (UAUA) and United (LCC). I would avoid the sector during the chatter.
- Gold–will test $1,150. Great trade for us since it broke the symmetrical triangle. If you bought $109.50 in the GLDs, this could be a spot to take some off, while hanging onto some for a move to $1,300-1,400 at some point this year.
- Oil–the USO got hit a bit yesterday off of the weak inventory data, but I think $41 should hold if oil were to remain very strong.
