By: Scott Redler
Yesterday we got a quick move lower in the S&P to cap the technical damage done of late. AAPL, AMZN and GOOG showed us nice relative strength for a bounce-back trade. The “momentum break out buy” seems off the table in big cap tech land, but there are opportunities based on price action and levels.
- Banks sold off hard in the morning, then bounced off of their lows–same story here–I did see a minor RSI positive divergence in GS. Maybe it gives us a trade back to the $165-167 area.
- BAC moved back to the mid $15s–buyer it here vs. $15 makes sense–that was where the big capital raise priced.
- Yesterday I sent out an action alert that GLD was in my Tier 1 macro long zone–the zone was $110.74 down to $109.80. I entered with an average cost at $110.45. I am now in Tier 1 long with GLD opening at about $112. Whether yesterday was “the bottom” in GLD for now does not matter. It doesn’t have to be the bottom in order to make money on some micro cash-flow trades. I had to trust my levels established in my plan (it was a bit scary yesterday). Today I will sell in my micro account and hold onto my macro swing position.
- The Agricultural sector continues to hold up well, with POT looking like it can break out to new highs along with some of its peers. $121-122 is the buy level, only if we get big volume.
- Oil has been very weak and the OIH reached its 62.8% Fibonacci retracement zone–it’s worth a buy scalp against the $110 area.
- AONE is a trade I have held since 11/17 at around $15 a share is over for me. It could go to the $19-20 range, but I sold yesterday and wanted to update everyone that got involved.
- SQNM is another trade I have been sitting in for two weeks. Today might be the day that it pushes through to the $5-5.25 zone.
- There still are a lot of one-off trades aside for the usual suspects
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You just need the right prices and timing.
