Stocks took a brief rest on the bench yesterday, but have checked back into the game Wednesday. The market is pushing higher with broad strength and leadership re-emerging. Apple Inc. (AAPL), which set up for another long yesterday when it closed on the highs, is once again flexing its muscles, breaking out to new all-time highs.Other big cap tech leaders are pushing back toward highs after pull-backs yesterday.
Banks
A highlight of the trading day today has been the banking sector, where JP Morgan Chase & Co. (JPM) continues to lead. Jamie Dimon’s bank broke out from a month long consolidation Friday, digested those gains for the last two days, and is now extending higher, up nearly 3% on the day.
Our technical laggard favorite in the group, Goldman Sachs Group Inc. (GS), is also pushing higher but with less potency than JPM. The other bank with strong earnings this quarter, Wells Fargo Company (WFC), is actually trading down 2% today.
Casinos
The casinos are another sector we were watching this morning, but they have been a non-event after gapping higher. Las Vegas Sands Corp (LVS) disappointed with earnings, but has held up in its long-term wedge pattern, signaling it has higher prices on the horizon. Wynn Resorts Limited (WYNN) continues to be the clear-cut best in show, however. The stock is forming a tight bull flag consolidation after last Thursday’s igniting bar.
Oil
Oil stocks are also surging once again after a brief period of rest. The turmoil in Egypt buoyed oil prices, and when the protests ended sector stocks showed some indecision. Our favorite in the group, Schlumberger Limited (SLB), has led the way over the last week while some others, like Halliburton Company (HAL, pulled in. The Oil Service HOLDRs ETF (OIH) is also breaking out to new highs. We feel oil has room to run in 2011.
*DISCLOSURE: Scott Redler is long GS, GLD; Short SPY. John Darsie is long SLB, WYNN, GS, JPM.
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