By: Scott Redler
DTA= Don’t Trust Anyone! Just follow the price action and your own set of rules. Prudent traders sell excitement and buy panic! The last few trading days have proven the validity of this mantra. Traders follow trends, buy breakout’s and short breakdowns. Traders get flat or safe when trends break and limit risk when uncertainty exists(Ex. when news hit on GS, BP and MEE).
S&P hit intraday high of 1164 with huge resistance at 1178-1182. Today I will watch the start of yesterday’s gap to see if it holds or how much of it gets filled. That level is 1147-1150. If we do trade into gap I think 1125-1135 should be a buyable area.
I do think market will wedge over the next few weeks as we absorb the violent moves of last week. Need to take quick trades in both directions.
BANKS are still heavy.
GS showed relative weakness yesterday and even went negative. 140-142 is still a huge level. If it breaks the measured move of January’s head and shoulders pattern, the level is is 135ish. Watch this closely.
JPM also was weaker yesterday. See if that continues.
BAC is not very compelling right now, there are better things to trade.
TECH
Most Strong Tech bounced back to prior break down areas. There patterns that look similar, with more time needed to build upper bases.
AAPL had a nice move yesterday back into the 252-258 zone. This needs time, and is scalp only.
BIDU bounced back stronger than most tech. Shorts could get extra scared as it splits tomorrow.
GOOG actually gave a nice intraday trade long. You could have bought with room back to the 520-525 resistance zone. It has a bit more room.
SNDK is also a go to stock. 40 is support and, with time, it could go again.
VMW had a nice snap back as well, but will need time to create a new upper base.
NFLX also looks decent, but I don’t expect breakouts anytime soon.
AMZN and RIMM are not as strong as above group but small trades are available.
CASINOS
The group looks like one to stay with but also needs time.
LVS was our biggest winner of the year, long from 19 to 24. Then it was a great short. Now it it needs time to range out. 21.50-22.50 is support.
WYNN was also great long for us, then bad action after earnings gave us clues to exit longs and group needs a rest. This is a scalp-only stock right now.
COMMODITIES
Oil is not compelling right now.
GOLD has been acting great and should test new highs soon. We’ve been long since $1,120 trading the set-ups with a tier strategy. This could be a nice momentum set up into new highs.
