As an active trader, if you came in long yesterday, you likely got sucked out of your positions. As the bears started to growl, lower support held again and they got squeezed into the close. This morning futures are back down near support, making the bulls and bears alike a bit frustrated. The caveat here is that despite the current manic state of the market, leading stocks are acting well. Stock specific plays continue to work, and each day we have different set-ups.
Big Support on the S&P still stands at 1173-1176. A breach and close below that level will likely give us a move to big support at 1155-1160, which is the 38.2% retracement level. We also have a new downtrend that is a line of reference at 1198-1202. We can watch that level if market stages another “miraculous turnaround”. If the market goes positive there are some set ups that I like.
Netflix, Inc. (Nasdaq:NFLX) hit 200 yesterday and I don’t feel it is still a compelling buy at this level.
Apple Inc. (Nasdaq:AAPL) still looks like it wants to make new highs on the year above 321 at some point. I’m trying to be long, but it needs to hold 310-312 then push above 317-318 for me to add.
Las Vegas Sands Corp (NYSE:LVS) has a nice tight pattern that we highlighted in the post yesterday. I am long small and if we can go positive, I will look for a cash flow trade through $50.65-51.25 and maybe hold some for new highs.
VMWare, Inc. (NYSE:VMW) was once a market leader earlier in the year, but it is just starting to recover from the cloud computing debacle. I now see a tight pattern that could give us a trade. The $81.60-82.50 area is the pivot level.
Schlumberger Limited (NYSE:SLB) and Halliburton Company (NYSE:HAL) also look great and set up for new move highs as the Oil Service HOLDRs (ETF) (NYSE:OIH) and the oil group continue to act well.
The overnight headlines again still present some significant risk. The more I read the harder it is becoming to trust these stocks or take any overnight risk, but until these leading stocks break down, or stop making new move high, you have to stick with what’s working. Just trade with less size and fewer positions.
On another note, I will be putting out some first quarter 2011 notes soon that I am preparing for my Minyanville Festivus Event this week.
*Disclosure: Long AAPL, LVS, VMW
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