By: Scott Redler
So far our thesis of “FOLLOW THE MONEY” is working out, and maybe even better than anticipated. Since the year started, the rotation has been awesome. There are great 3-4 day moves, then the money moves on, all the while, the indices continue to churn slowly higher.
The Rundown:
- Right now it seems like the banks–which started fast–could use a rest.
- Big cap tech, a laggard last week, got some nice action on Friday. Google (GOOG) was a great buy around the $593-594 area. Amazon (AMZN) also was a nice buy when it held the $129 area. Apple (AAPL) held its prior breakout at around $209, with a new buy shaping up at around $212 and the door open for new highs at around $216.
- HAVE A PLAN–THEN LET THE MARKET CONFIRM IT.
- Oil is pushing to new highs–at this point, the move is hard to buy.
- The OIH is pushing higher–I will look for some type of micro short into this gap open if I see the right divergence.
- The Ags have been strong–Potash (POT) did a push through failure on Friday, ending the day with a doji. It can use a rest here.
- Gold is gapping up today–we sent out two action alerts in the last month. You should have an average cost reflecting about $1,080 on the gold futures and $107.50 on the GLDs. We bought back a tier 2 position with only half left. Sell it based on your timeframe.
- Casinos had a powerful move–they are digesting right now, but seem poised to move higher. Use Las Vegas Sands (LVS) as an example–above $18.60 perhaps that move continues.
- Little bios and security stocks have been on a tear as well–but, you need filters for those.
- Homebuilders, a sector I don’t trade, looks very strong.
- CAGC, CAAS–powerful moves, now hard to buy.
- RINO looks great if it can get above $32.40-32.60 with volume. I started the morning by highlighting this setup.
- Next big resistance on the S&P is at 1,155. From there we will then look at 1,160-1,164.
