By: Scott Redler
The indices took a day off yesterday (an inside day). No reason to “worry” but as this market works its way higher, it is prudent to take some trades and protect some profits. I’m finding it hard to “sink my teeth in” with these types of trades. I will just trade setups now and keep it lighter and more flexible.
I am not calling a top–just taking some of my macro longs off so I can focus on quick cash-flow trades, like Google’s (GOOG) reversal yesterday. There are still things to do, which is necessary if you’re a professional trader, just that sometimes you have to stay more prudent/cautious than others.
The S&P has a nice upper flag. A trade through 1,174 could trigger an additional move into the 1,180-1,190 zone, but it’s hard to buy heavy in that area.
The Rundown:
- Apple (AAPL)–is up over $4 since I sent my last chart–isolating the $226-227 area. Now it’s over $230 and is getting tricky.
- Research in Motion (RIMM)–holding $74-77. No setup here.
- Amazon (AMZN)–this is taking a snooze. It’s just dribbling lower, but can wake up and come back in play at anytime. No setup just yet.
- Cisco (CSCO)–adding some gains, but nothing wrong to write home off now.
- Intel (INTC)–great trade from $20.80-21 and now just pick your spots to take profits as we are now $22.50ish.
- Baidu (BIDU)–continues higher, but is tough to trade.
- Google (GOOG)–had a surprising reversal yesterday with the buy price at $542. It could take on some more gains it it moves above yesterday’s high of $560. The next resistance area is $565-570.
- VMWare (VMW)–looks good and is holding up well. I guess over $54.70 it can go again, it’s just hard to sink your teeth in up here.
- Semis (SMH)–looks good depending on the day.
- General Electric (GE)–had a monster move from $16.60 and another trade above $18.10. Now it’s up to you.
Financials–
- Goldman Sachs–holding the $174-175 area. A trade through $177-178 on HEAVY volume could be worth a look for some more gains.
- JP Morgan (JPM)–this has been on a tear! I sold my macro position here yesterday. It’s up this morning. I might try and scalp it short and see if there is some negative divergence.
- Bank of America (BAC)–I’ve been all over this since $15 or so. Nice move through $17.50. I sold some yesterday and had my guys sell August $18 calls to add more gains, because they didn’t want to leave the equity just yet.
- Wells Fargo (WFC)–also had a nice move.
The Casinos:
- Las Vegas Sands (LVS)–a 10% move here is what we were waiting for. From $19-22 in 4 days is NIIIIIIICE. I took most off, and if I were you, I would sell some in the money calls to protect it. This could range out for a bit, but either way, the cash flow trade is in the bag.
- Wynn Resorts (WYNN)–this is the leader, but the move wasn’t so juicy.
- MGM (MGM)–this is the dog–very frustrating. I will keep it on the radar as long as the casinos hold up. There is always the chance for a squeeze through $12.75-12.85 to take the stock back to $14, but it’s very stop and go.
- The Dollar–this has been on a TEAR. It’s putting some serious pressure on gold. I got stopped out of all my gold. I guess if the EU gives clarity in the summit, the Euro can bounce and the dollar will come off a bit. That is how we’d get our commodity bounce.
- AIG (AIG)–THE STOCK IS VERY FRUSTRATING. But, once everyone hates it, it has a big move if HEAVY volume comes in. I will trade it if it triggers through $35-35.50.
