By: Scott Redler
This morning I talked about testing longs vs. the 1068-1072, which represents the 50% retracement zone from the entire July move of 1010-1130. The question now is, how far can this bounce take us? I bought a lot of SPY in the 107.20-107.40 area, and sold some some around 108.40. I will try to hold the rest for a day or so.
The next easy area which we can get to is 1085-1088, which would be the target selling area for profits. The next area that I think would be
impressive if we can trade back to is 1096-1104, that will be a brick wall of resistance.
-BIDU and AMZN act very well, they went positive first and pushed. These stocks are important to trade and watch.
-NFLX, which was strong in the face of last week’s weakness, is punishing all doubters!
-AAPL still acts heavy but is holding 246 for now.
-Last Thursday on CNBC Asia I suggested buying some INTC and CSCO for a trade since they sell them on good earnings, why not buy them in the hole on bad earnings?
-HPQ is decent but trades erratic. Be long vs. 40ish.
-FCX and X went positive quick and are okay to trade
-POT is building a new pattern, showing Relative strength. The next momentum buy would be over 114ish.
-Banks are spotty. GS is holding 147ish and JPM is holding 37.
-Gold I was in tier 2 coming in today, it can use a bit more time but is acting much better.
