By: Scott Redler
So far buying into the emotional down moves are the only way to make money long.
Last Friday was a great trade on that big gap down. Then the same held true Tuesday into Wednesday.
At this point we have not been paid for buying stocks higher, or after that initial bounce. Today will be important. We still have a short term double bottom in place in the 1040-1050 area on a micro Level. 1086-1090 has been the level we failed out three times now, so watch how the market handles that zone. A 60-minute close above should take us back to the 200-day moving average around 1103. If we fail in this area it’s just same erratic tough action.
Our go-to stocks remain tough.
AAPL is still building its wedge type pattern. We have lower highs in place and a floor on the stock. It’s not easy, but the range is getting tighter. 252-255 will be the downtrend that could make for a good trade if market holds.
SNDK broke out yesterday but didn’t hold, as the market is unsure of itself. No new highs are easy to come by in this environment.
VMW is near new highs and could be tricky.
NFLX failed at 108-109. See if the market holds. If it does, this might squeeze through that level.
BIDU will meet important resistance at 70-71.
Banks had no follow through yesterday.
GS couldn’t hold the 143 area, so see if it can get above this area today and stay above.
JPM has important resistance at 39.30-39.50.
I bought some IRE around 4.70 Tuesday. I haven’t traded it since I got stopped out around 9.45, but now maybe it can see $6-$6.50.
BP is getting a bounce as they try the “top kill” method to plug the hole.
OIH watch how it handles 104.
GLD had a nice bounce from 115 back to 119ish, but now it’s not compelling.
Cramer came on T.V yesterday and spooked the market by saying he is hearing something big could happen overnight. He got everyone out and scared, so I bought some spy last night 106.70 since he usually is DEAD WRONG. What he did yesterday was HIGHLY IRRESPONSIBLE.
In the longer term, we do feel like stocks are heavy and will go lower, but testing longs after a market falls 14.7% in a month is worth a try.
