By: Scott Redler
Intel (INTC) and JP Morgan (JPM) both came out with very impressive earnings reports since the close yesterday, and are boosting the market higher this morning. Short term support held in the indices yesterday morning, and this strong uptrend remains well intact. It seems some excessive xcitement and some stretch is entering this market, which gets me on the look out for a possible correction.
Yesterday I said 11,150-11,400 for DOW and 1220-1230 for the S&P will be my targets through the first few weeks of earnings season. The bears will try and sell off INTC and JPM to “price in” results, but I’m not sure they will have much success. I will watch them closely today.
Tech
AAPL is opening at new highs, and has kept moving since the last “tradable buy” around 226-227. If you’ve managed to hold your longs, congrats.
GOOG was the set up of the week through 570 then again over 575. It’s now opening at 590. I hope you got involved because now it’s tricky with earnings Thursday.
RIMM filled a big part of it’s earnings gap yesterday and is opening up a bit. If you got long for that strategy I would lighten up and see if it runs out of gas around 73.40-74. I might look to fade it there.
MSFT was a great entry last week at 29.70, then again at 30 and now it’s near 31.
AMZN has no real set up here but this should be at new highs soon.
My Three Amigos
In the beginning of the year I said these three would be holds for the year, more than “just a trade” if you can handle it.
VMW was a great trade Friday into Monday, but now has no trading set up.
CREE (WOW!) is opening at new highs. Right now its hard to buy, but no way I would be shorting it either.
ISRG is back at new highs. That was quick.
I am a active trader, and there have been times and places for trades in these three, but buying and holding would have worked better. Too bad I’m not a billion dollar fund manager.
Casinos
All the casino’s were upgraded yesterday, so the short strategy was “short lived” for now. I traded out of them with limited damage, and I am flat these three now. They all seem like they want to go up a bit more, but LVS from 19 to 24 was enough for me.
Banks
GS we have been eyeing and yesterday I stated buy it in the 177 area for a trade through 181. Now it’s 183. Hope you took some. Today will be tricky, but we have room to 185-188.
JPM posted great numbers and is opening near new highs. See how it handles up open and 47.48 area.
BAC is opening above 19, and I’m hearing numbers will be good Friday.
C- Keeps inching up every day.
Irish Banks
AIB Goldman is positive on this now. I will add and buy a lot in first hour hoping that opening print at 4.20 is not the high. It seems like there is room to at least 5+.
IRE was also re-iterated as a buy and I will try to re-enter and hope that we get the move we were looking for on Monday.
Use FI as a lesson. It didn’t go the week we wanted it—then it took off. Be patient.
Credit cards
V if it can get above 93.70-94 and hold should finally be on the road to 100.
Commodities
FCX looks ready to get on the move again. I think tier one buy is around 85.50, then if that holds it could get over the big 88 area and make new highs of the year.
Oil held important 84ish break out area, or that 40.40 ish, and now can get back on the move.
Gold held the $1040-$1050 area that we put in place yesterday and can continue move.
Bottom line is there are times to enter these stocks, and times to wait for a better opportunity. The best time to enter most of these stocks was earlier in the week, and with the up open, it will be tricky for longs and shorts in this area.
