By: Scott Redler
This rally has been impressive, and the sector rotation has been awesome for traders. Breakouts are finally working! Bad news is being absorbed! With all that said, don’t fall asleep at the wheel.
My major resistance zone has always been 1220-1230. I don’t pull these zones out of a hat, 1225 is the 200-day weekly EMA resistance area. Next, 1229 is the 62% Fibonacci retracement zone from the entire breakdown from 2007-2009.
Tech has been mixed. I see a lot of hard-to-buy extended stocks that, at any moment, can turn into Red Dog Reversals.
AAPL is probably the best stock in the market. I’ve listed it 5 times for clean buy zones. Now it’s extended and very hard to buy (or short!) I will look for some type of 80-20 RedDog Reversal trade here if it presents itself. 272.18 is the pivot price.
SNDK has the same strategy. It has been a great long with numerous spots to buy, but not now. Tried to short Friday and lost a little, but will try again at similar price above 44.77. If it pushes through that price and squeezes again, and then puts in a high and comes back thru that price, I will attempt to short with a stop at today’s highs.
GOOG is nothing here, has a weak pattern.
BIDU has earnings Wednesday and could push higher. Use 650 as the pivot.
AMZN will be interesting to see what they do here. Earnings were not “blockbuster” but they didn’t sell it too hard Friday. Watch the new range.
MSFT was also muted as far as Friday’s down move.
Banks
GS watch 165-166, which is very important support. See if it holds or breaks. If it holds, and GS gets strong, you could see a quick buy at 158.50 for a move back into the 160’s.
JPM is holding at 44-44.50 for now, but not compelling.
BAC did hold 18.
Commodities
OIH has been on fire. As soon as President Obama said we can drill the first buy was 122 then I listed this ETF at 127-128 last week. It’s at new highs.
EOG is at new highs and could stretch, but it’s hard to buy.
APA was listed Friday at 109, it’s now at 110+.
CNQ still has a nice set up. I am long and will add in the 79-80.25 area if it trades through with volume.
AIG last buy price was 42 after the first at 35ish. The stock is now at 45 through Friday’s high. Use that as a pivot for a quick buy, then maybe a short.
IRE has news of an offering. To be honest, I don’t really understand what it all means, but my fundamental colleagues say this is the strongest bank in Ireland and once this is out of the way it could be on its way to 13-15 by year’s end. I will add only if it gets above 10 and holds.
Gold looks good. It came back and tested the symmetrical triangle break. Everyone should own some GLD.
DGP had momentum come in, and will be in play if Gold trades above 114.20.
Casinos have met and exceeded all my expectations.
WYNN saw great action Friday in morning to new highs, then closed on the lows, so we need to see if that leads to some profit takers.
LVS went from 19 to 24, then last week we had a great two day trade as well. It’s up this morning with Singapore news, but I would not be buying this open, but maybe looking to see if can be sold.
A two-day Fed meeting starts tomorrow, so stay on your toes.
