In the last week or so I’ve gone to largely cash as lots of the leading stocks of this three month move have been showing signs of fatigue and breaking upper levels. Yesterday they got to Baidu.com, Inc. (Nasdaq:BIDU). The stock has been not acting well with a ton of false moves and then they said growth could slow in 2011. BIDU sliced through the $105-106 area and has settled in below $100 this morning. It is now a broken stock and will need time to repair itself given that sort of warning out there.
We’ve seen this many times in the last few weeks as base-on-base patterns after big moves are always prone to a down move like this. But then you look at Wynn Resorts, Limited. (Nasdaq:WYNN) that tried to break $100, and they defended that area so that short did not pan out. At this point I’m judging patterns on a case by case basis with much less size as the trade is getting sloppy and thin.
Apple Inc. (Nasdaq:AAPL) has now been upgraded several times in the last two weeks, most recently by might Goldman, and can’t get going. Be a bit cautious here. If it breaks the $317-319 area it could get pressured. As long as it stays above that area it’s still in the game for higher prices, but I’m starting not to trust the action there.
Amazon.com, Inc. (Nasdaq:AMZN) continues to hold $173-174 but I’m not seeing anything so great. The upper level is intact, still this needs to start moving up again, otherwise the shorts might get to this, too.
Netflix, Inc. (Nasdaq:NFLX) gave us a small 80-20 day trade yesterday but not sure how much more upside we can get. It still looks prone to more weakness.
Las Vegas Sands Corp. (NYSE:LVS) has been very heavy and has gotten crushed the past two weeks. I came in today thinking it’s time to look for a long especially if it had one more violent down move, but it was upgraded today. I will look for a entry long for a small bounce. Amazing how hard it was too short at $53-55 and now it’s so hard to buy at $42-43.
Eastman Kodak Company (NYSE:EK) looks okay, it still has a small bull flag after last week’s breakout above $495. It could get going again if it breaks above $5.40-5.50.
Banks just a nice three day pull-in. Buying a pull in could be ok here. Gold is still controlled by its breakout failure on 12/07 and needs time to re-group.
Yesterday we had a nice targeted long on Youku.com, Inc. (Nasdaq:YOKU) and E-Commerce China DangDang, Inc. (Nasdaq:DANG) . Both have a bit more room, but I’m not expecting much.
For the broader market, 1225-1227 is pretty big support on the S&P.
Lastly, and this is not my specialty, but I’m starting to watch the iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT) and iShares S&P natl AMTFr Mncpl Bd Fd (ETF) (NYSE:MUB) for a tradeable bounce. The correction there is getting emotional and that’s when I see opportunity. I would use a two level approach in TLT: buy the first tier around $90-91, then if they hit it again look to buy more into the $88 area. Same approach for MUB.
*DISCLOSURE: Long LVS, EK, DANG; Short SPY, BIDU
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