By: Scott Redler
The market penetrated through the 1,085-1,095 area and is now opening up near 1,100. We went from 1,044-1,100 just like that! I will try some shorts in this area, for a trade, that I started around $110.25 on the SPYs and will get bigger as we get to $111.39. This will be my first short since trading from the long side last week.
Most of my stocks have reached their “easy bounce levels” so it’s tough to now buy into this up open.
The Rundown:
- In tech, Apple (AAPL) went from the $196-197 area to my resistance zone of $204-206. I am out of my long here and will test a short for a trade.
- Research in Motion (RIMM) needs to consolidate a bit, then it can be a good long into the gap if it holds $72.
- Cree (CREE) has put in a blockbuster move since last Thursday. The stock can still go higher, but it can do so without me, as I have taken my trade and am now out.
- Amazon (AMZN) did not act well yesterday. If it continues to show weakness, it could be a short through $117.
- Google (GOOG) had a nice move yesterday. I am long from $537 and $542 and will add through yesterday’s high of $544.13 (It still doesn’t act great, so be careful if it breaks $537 and get out).
- Baidu (BIDU) is tricky, but strong. I would avoid it right now.
- The banks finally woke up yesterday.
- Goldman Sachs (GS) broke above the $154-155 that I have isolated many times. That added some power to yesterday’s move for JP Morgan (JPM), Bank of America (BAC), Wells Fargo (WFC), etc.
- U.S. Steel (X) is opening at the level I put out there last week. I would sell some longs, as the same mantra applies: the easy move is over.
- Freeport McMoran (FCX) had a nice move from its lower pivot. It could go higher, but will do so without me.
- Gold, and the GLDs, are opening up today, as it fills a gap from January at around $110.50. If you’re trading it, and you bought on the February 5th outside reversal day, I would take some profits.
The easy bounce is over. The next question is whether the market can hold higher, because if so, we can continue to move on up. What concerns me at the moment is that we quickly went from oversold to overbought, so be patient and let the market give you some clues.
