Knocking on the Door Again

By: Scott Redler

Once again, the S&P is a stone throw away from new highs. A 60 minute close above 1,109 in the SPYs should give us a move to 1,127 and then the 1,135 area.

Sector Rundown

• Investors in XTO are chilling today–this takeover is giving oil and natural gas names a huge boost–the OIH is opening above its descending trendline today (116ish…see if it holds).

• The banks are meeting the “Big” dog today–watch GS, as long as it holds the $165-166 area we could see a nice push through $167.50-168.50 for a move back into the $175 zone. This will help the entire sector. JPM holding the $40 area is important, as is BAC holding the $15 zone.

• Tech is still taking turns and giving us opportunity on a daily basis–AAPL (same type of strategy as GS) holding $194-$195 can lead to a powerful long through $198.50-199.50. Watch price action closely. AMZN is getting some pressure from Barrons, meanwhile GOOG is opening at new move highs.

• RIMM reports this week–nice long around $61, then a better short on Friday into the gap open around $66. I would now avoid this stock until it reports earnings.

• We are in a Tier one macro long Gold–but it still feels heavy. I think we need to break $1,100 and get to $1,080 before we add another tier long–if support holds. There is a mini downtrend that now stands around $111ish in the GLDs.

• Oil is still very weak–I am watching for an oversold bounce today.

• FED WEEK this week–this time it’s a bit more important than last–will the language change after the recent positive jobs report????