It’s been about 9.5 years since the day I was sitting at my desk and saw the futures start plummeting that Monday morning. This day that destroyed lives, turned families upside down, and created chaos in the Manhattan. Getting this monster hopefully gives families a bit of closure, but it will never replace the lives lost that day, or the soldiers who lost and risked their lives thereafter. I wish it happened sooner! I think it will be interesting to see how the market trades based on Bin Laden’s death. Conventional wisdom says investors will cheer his death, but the threat of retaliation from his supporters I think could negate any market enthusiasm.
DJIA INDEX Â Â Â 12,829.00 Â Â Â +73.00
S&P 500 Â Â Â Â Â 1,367.00 Â Â Â +7.30
NASDAQ 100 Â Â 2,413.00 Â Â Â Â +12.25
The S&P’s are gapping up 7-8 handles and now are about 1365. We are about 70 handles higher than the 1294 low on April 18th. More recently on April 28th we broke above my neckline of 1340 and stand about 25 handles higher in about 5 trading days. We are well on our way to the 1410-1440 target. But as a market timer, I shorted a little SPDR S&P 500 ETF on Friday’s close and will add on this up open BUT continue to hold my 10 positions or so and create cash flow around them.
Watch the T3Live.com Morning Call below with Scott Redler and Alix Steel.
Now lets get to the TECH sector.
Apple Inc. (AAPL) saw crazy action on Friday due to index rebalancing in the last 10 minutes. I was long all day and then got stuck in a ton of size through the weekend as I bought more on that late-day pull-in. I will try and hold and maybe even add if it can start to take out $354-355. If stock closes above this level- we should see new highs of the year this week above $364.
salesforce.com, inc. (CRM) has been very sloppy but is still holding in. I’m in tier one, and we can finally get a nice move if it takes out $140-142.50. There must be volume for me to feel confident about this one.
VMWare, Inc. (VMW) has been sloppy like CRM. But as long as it holds $93-95 we can see a move above $99.
Baidu.com, Inc. (BIDU) has also been a little weak and sloppy since earnings last week and needs to hold $145-146. A trade and close below this level could cause a bit of weakness.
SINA Corporation (SINA) is wedging nicely, working off the overbought condition. $135-136 is the new pivot resistance and $127-130 is important support.
Amazon.com, Inc. (AMZN) had a powerful breakout move after earnings, and looks like it has higher prices in its future. I will avoid for a bit, but look to trade it long again after it sets up again.
The casinos are acting well, fueled by its group leader Wynn Resorts, Limited (WYNN). WYNN reported a stellar quarter a couple weeks ago.
WYNN gapped up to new highs after its strong earnings report, and has been flagging nicely for another potential extension. The stock looked poised to perhaps make another high Friday before pulling off late in the day. Definitely keep this one on the radar for another long.
Las Vegas Sands Corp. (LVS) is choppy but I’m still long and next resistance is $48.50-49.50, like I’ve said numerous time. Earnings are tomorrow, so lets see what we can get out of it into the announcement.
MGM Resorts International. (MGM) has been quiet and is out of play for now.
Silver has some crazy weekend action. I am still short tier 1, so I’m happy to catch a little boost this morning from that, but it was a tough hold. It was down a lot more overnight (around 20% at one point) hitting $42.50. I will cover some but continue to stay short. Silver showed many signs of a exhaustion top. Huge volume, huge expectations, and a ton of overexcitement. Gold is down a little also, and it’s short term extended. I’m trying to stay in tier one long since I’ve been long the SPDR Gold Trust ETF (GLD) since $131.
The Oil Service HOLDRs ETF (OIH) is taking time to work out, but is still a tight pattern, holding moving averages and can see new highs if market stays strong. $162-163 is big resistance to trade
*DISCLOSURE: Scott Redler is long AAPL, WFC, GLD, MGM, CRM, LVS, VMW, CIEN, WYNN. Short SPY, SLV, REDF.
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