By: Scott Redler
The market has bounced impressively, holding Monday’s historic gap up. The S&P is now approaching big resistance. The area where the market broke down from, 1178-1182, is just a stone throw away. I do think the first time it gets here, it will be tough to break through. The “easy” bounce in my opinion has happened. This area will be tough to trade through.
TECH
BIG CAP TECH gave clues that this market was not as weak as it seemed. All the “go to” stocks that I list here all snapped back into upper ranges and some through recent highs. This gave us clues that market could rally back.
AAPL had a big snap back and technically looks very good. I’d like to see a rest up here as it is hard to buy after such a big snap back. Still, I see no reason why this won’t be over 300 this year. Watch yesterday’s high for a micro trade both long and short.
BIDU is a MONSTER. Every trader I know tried to short this yesterday, including me. We have all thrown in the towel on that idea. I will see if we get a short set up for a trade. Only short vs. a 15 minute high, then use that as your stop.
VMW is my stock of the year. It looks great and is right at the old highs. I’d like to see more rest but it could be a good trade again if it gets through 62-63.50.
NFLX had a very impressive snap back and hard to grasp this one, but it could see new highs.
AMZN had a small snap back, but it’s not as strong as the “go to” stocks.
GOOG doesn’t really trade well. 520-525 contained the last move, which makes sense. Watch price action, but I’m not sure what to do with it here.
BANKS
MS was called in to respond to potential fraud allegations, and I hear DB and JPM are next. Yesterday I said GS should bounce and now it looks like banks might break this small descending channel. If you want to play FAS, that level is 33ish.
GS looks decent, with a small descending channel that could resolve to upside. Watch the 148-149 area for a buy. If it gets in there and stays for over 60 minutes, we can see 153-154 pretty quick. I’m long from yesterday.
JPM also looks very oversold. I think they get called in also. On that news, it could be buyable.
MS held important support in 27 area and is bouncing.
CASINOS
They didn’t snap back like strong tech but are still in the game for trades.
LVS has room back to 24.75-25.25 but the easy bounce is over.
WYNN has some more room back to 89-91.
Trade with Caution!
Gold has been a great trade for us since 2008. Recently we bought a ton last week and Monday. Now it’s time for a rest.
