By: Scott Redler
The market has proved this week life can go on without Goldman leading the way. Still, as we go through earnings season at these already extended price levels, it’s the case of the “Have’s” and “Have-Not’s”.
It seems it takes a blockbuster report for a stock to trade higher after reporting, and that’s exactly what we got with AAPL. Other impressive, but not blockbuster, earnings came from YHOO and CREE, but they were already priced in. In the case of all three–AAPL, CREE and YHOO– it will be important to see whether we hold up or whether it is a fade scenario this morning. I’ve said numerous times over the past months, this is a very stock and sector specific market right now, both long and short. Be flexible and use all of your tools to get quick cash-flow trades.
S&P bounced back above 1200 and still is holding in after the test of recent uptrend. I’d watch 1200 then 1196 on the support side today and then 1207-1215 resistance.
Tech
AAPL. After listing this as a buy about 5 times in past few months, earnings are out and they were blockbuster. The stock is opening up 14 points. I think all eyes will be here to see if they can sell it down. I took the 250 calls and sold the 270 since I don’t take stocks into earnings, and will see if there is a trade today. Maybe fade open vs. the first 15 minute high, but if it tests 251, the prior high, I would look to buy that dip.
CREE was priced in, and the stock is down 5.
YHOO was also priced in and is down .80.
AMZN still looks good, and I think it’s pertinent to see if AAPL holds and breaks higher. If so, then this one can break out again.
MSFT had a great move since our 29.70 buy price. I’m flat as it’s earnings are Thursday. I would take some off.
VMW had a good report not sure what they do here, so I’m out.
BIDU had a big snap back after the Monday down move, and is very tricky here.
GOOG had a small bounce after the earnings let down, but is not compelling.
Banks
GS was a great long on Monday morning, but a better short on yesterday’s open. Now I will watch for set-ups, but I don’t think it‘s compelling.
JPM needs time.
BAC needs time.
WFC reported disappointing earnings and is down a bit.
MS is up 1+ on good numbers, but I’m not trading it.
AIG looks GREAT. We had it a few times recently, and the next price would be to get above 42.15 and hold on volume. It could easily see 45.
IRE had a nice move above 10. It’s slow but should continue higher.
AIB will follow but is even slower.
BPOP looks great. I am long and will add above 3.97-4.05. Earnings are today, but they preannounced. Real move will happen if they get the FDIC insurance that street is waiting for.
Casinos. After a nice trading short from last week they all held support and seem to be building new higher consolidations. I will list prices for them soon.
OIH had a huge break out move yesterday. This group could be the place to be for a bit. Look at what EOG did yesterday.
This is a tricky tape right now, so take quick trades both long and short.
