By: Scott Redler
The stock market is going for its seventh up day in a row–the S&P closed above our important 1,119-1,121 area, with our next resistance area checking in at 1,133-1,135 and MAJOR resistance at 1,140-1,144. I do not see many compelling setups for today. It seems like you get about 45 minutes of trading and then churn sideways the remainder of the day.
Most big cap tech stocks had the meaty part of their upmoves and now can use some time to rest. AAPL gave two great entries and now probably needs to consolidate above its most recent highs.
AMZN–I do not see much opportunity after its new move back up from the $129-130 area. GOOG is a bit stretched right now and could take some time to digest. BIDU looks interesting–it popped back into its range, but nothing looks compelling for today. RIMM is holding its earnings gap, but also needs time.
We are short SanDisk (SNDK) from the $30.70 area after taking a few days of pain. Finally we saw a big technical topping tail (see the chart below). I will add to the short if it pops up into the $30 area and meets resistance today, or if it trades through yesterday’s low of $29.20. I do think we can cover in the $26.50-27.50 area over some time.
Sector Rundown:
- Gold is a bit concerning right now–we are in Tier 2 long with an average cost of $107.50ish on the GLDs, but it is not acting great with the recent softness in the dollar. Even still, it is close to breaking its downtrend, which could ultimately lead to a move back to the $110-110.60 area.
- Oil met our bounce objectives–I would avoid it for now.
- Casinos seem to be dead money for now.
- The Ags have a bit of pressure.
- AIG gave us a nice trade yesterday and could potentially continue to the upside if it trades through $33. The next upside target would take prices to the $35-37 range, but just for a trade.
- BANKS have no power or interest yet. Avoid the sector unless you see massive volume in GS take prices through $166-167.
