By: Scott Redler
Traders love follow-through, so Tuesday’s up open was music to many traders’ ears. BUT, on the fourth up day, like I warned, it becomes tough to buy. Traders needed to be very calculated in order to short, as the S&Ps sneakily came in during the afternoon and closed near the lows. This signals a short-term rest today.
The S&P resting DOESN’T MEAN STOCKS CAN’T MOVE. Yesterday’s high was 1,123 with a major area at 1,130. On the support side, watch 1,115, and then major support in the 1,106-1,110 area.
The Rundown:
- Apple (AAPL)–after a nice four days up, I mentioned that yesterday it could be a good micro short as it approached larger resistance at $210-214. Now it could use a rest. The stock should hold the $205-206 area. I would love a rest, as it could provide us a better setup for new highs
- Amazon (AMZN)–FINALLY a real two day move! We had strong follow-through from the break above $121 with the stock closing on highs around the $124.50 area. Then DAY two, up to $127.50 before some profit-takers came in. Now it will need to consolidate for a few days.
- Qualcomm (QCOM)–Was a monster gap and go. This stock has plenty of room to the upside, but a big chunk was taken yesterday.
- Google (GOOG)–Popped back into the game on volume. I think it needs time to setup.
- Baidu (BIDU)–the stock was a big weak yesterday, and then a downgrade comes out this morning. Someone always knows something. $500-505 should hold.
- Research in Motion (RIMM)–Still not breakout yet. Like AMZN, which tried many times before triggering, this stock needs volume to get above $72 and break higher.
- Palm (PALM)–I still think you can nibble here for little trades as close to $6 as possible.
- Cree (CREE) was a nice short yesterday, as it was extended. It could continue down for another day if it trades through $68.82 (yesterday’s low). This is the same setup we took about a week ago.
- Wells Fargo (WFC)–great focus yesterday. This could continue higher.
- JP Morgan (JPM) is still resting after a monster Monday.
- Goldman Sachs (GS)–WILL BE ON MY RADAR. It provided a great trade yesterday, but the real macro setup is through $160 on HEAVY VOLUME. That would be a nice move.
- U.S. Steel (X) looks very tired. It has been a great long since the February lows with multiple setups. I would avoid it long for now, and might even short it today vs. yesterday’s high and add through yesterday’s low of $54.77 for a move back to $53.50-54.50.
- Freeport McMoran (FCX)–nice poke through $77…nothing here today.
- Intuitive Surgical (ISRG)–After an awesome breakout through $350 on Tuesday, yesterday it went another 10 points through $359. Now it needs to range out.
- Gold–this had an awesome 4 day move since Thursday’s buy. It’s opening up a bit today. I sold 1/3rd yesterday and will get down to half on this gap today. Then, I will hold the rest, as I THINK GOLD WILL MAKE NEW HIGHS THIS YEAR. But, I will trade around it to keep creating cash flow, because we can!
- Medivation (MDVN) is the DISASTER OF THE DAY. This stock demonstrates why you always need to know when stocks you own are due for news.
Happy trading!
