If you don’t want to drink the Kool-aid, you should have grabbed a six pack! We put together our go-to list for trading and update it every week or so and give actionable trades as they set up. If you “buy and hold” you could have had the best tail gate ever by grabbing the best six acting stocks in the market, that continue to impress and maintain composure as they take turns moving into new highs as this market marches higher. Apple Inc. (AAPL), Baidu.com, Inc.(BIDU), Amazon.com, Inc. (AMZN), Netflix Inc. (NFLX), Priceline.com, Inc. (PCLN) and a recent addition Riverbed Technology, Inc. (RVBD), add in some Mexican burritos with Chipotle Mexican Grill, Inc. (CMG) and that’s some outing!
The market is opening at new highs as dollar gets more downward pressure following the no-fireworks g20 summit. The S&P held its upper range last week as it continues to stair step higher. I tested some shorts after Tuesdays distribution day, but had to cover early when the market took back 1172-1175 to maintain its overall bullish composure. It’s one thing to not trust this market up here, but you can’t fight it or it can put you out of business.
Tech
Apple Inc. (AAPL) is still resting after earnings. The new upper range is still being put in place. It’s only a matter of time before it resolves. These go-to Stocks seem to hold 10-day moving average as a opportunity to buy “in the hole” if you like to go after momentum, grab it when volume takes it above 314-315.
Baidu.com, Inc. (BIDU) had a strong report and ignited out of its 4-week consolidation. We hedged with options into earnings, but it was really the trusting investor who stayed long that enjoyed the gains.
Amazon.com, Inc. (AMZN) was very surprising as I thought earnings were not enough to push it to new highs, but I guess when the fix is in and you have limited vehicles the institutions don’t need too big of an excuse to “buy the dip”.
Riverbed Technology, Inc. (RVBD) is worth putting on the watch list. It reminds me of AAPL back in 2004; this wasn’t a exhaustion earnings gap. Give this time and it will continue higher in next few months.
Netflix Inc. (NFLX) was very tricky after earnings, and this did pay call buyers and after hours traders who acted quickly. But since it has drifted lower a bit. Watch 165.94 as it could push into the gap, but I would be careful short except for a quickie.
Priceline.com Inc. (PCLN) is back at new highs and bulls here got some conviction as they saw Amazon.com, Inc. (AMZN) rewarded with a lukewarm report.
Google Inc. (GOOG) has been great after the gap and go earnings. The range is super tight; I will hawk it for a long trade through 616-619.
Chipotle Mexican Grill, Inc. (CMG) I listed it a few months back around 155 and it has been a monster. We haven’t been involved for most of the move but its strength is still noteworthy.
Banks
Goldman Sachs Group, Inc. (GS) was decent at best, but no compelling trade here. It can drift higher with market, but there are better opportunities out there.
Citigroup Inc. (C) was upgraded by Goldman to conviction buy. I guess you can buy and put in the drawer and forget about it. By year-end maybe you see $5, but I would not “trade” it actively. You you will need more than a six pack to keep you from boredom
Bank of America Corp. (BAC) continues to be the whipping boy of the media. It has put in a small lower pivot, and if it trades through 11.20-11.30 it could get in some trouble. See which way the doji resolves.
Casinos
Wynn Resorts, Limited (WYNN) is very sloppy. We have not seen a clean move here since 94-95 buy that gave us a clean move to 104. Now it’s trying to hold up here and could work towards 110-115, but it’s hard to sink your teeth into.
Las Vegas Sands Corp. (LVS) stock remains tricky and strong. Looks like Barron’s article could push it above 40.
MGM Resorts International (MGM) is still the dog of the group.
Rare Earth Resources Ltd (REE) has seen lots of action here as momentum traders got huge trades in both directions. Now it needs time to re set-up. Also watch Molycorp, Inc. (MCP) in the rare earth space.
Power-One, Inc. (PWER) looks decent again with trigger buy above 11.
Gold is gapping up with Dollar weakness. See how SPDR Gold Trust (GLD) handles the gap area from 131.50; that could be a resistance spot.
This market has been tricky over the last week or so, and it has been hard to gauge how the market will treat earnings reports. It’s been hard to trust longs and not lock in gains, but that doesn’t mean you violate rules and keep rolling up shorts if you fall in that category. There is a time to be in cash and wait for better opportunities. I am very light long, and will not chase this up open. I just hope if you did test out shorts last week like I did you stopped yourself out and are not dealing with this gap up headache as you enter a new week. If we get a 60 minute close above 1190 today there is no reason we can’t see 1200+ this week. You don’t have to participate, but you do have to follow your rules.
