Range Resolution???

By: Scott Redler

The jobs number came out on Friday and was just enough to keep the bulls happy, but not too hot for everyone to say rates need to be raised “tomorrow” etc. The S&P has maneuvered through an upper range for about two weeks now: 1,160-1,180 being the relevant confines. This morning we are opening near the top of the range, and a 60 minute close above 1,178-1,180 should trigger the road to 1,200 (needs to hold so we don’t see a push through failure). This should also trigger the road to 11,000 for the Dow so that markets can finally get “retail” excited. Support for now checks in at 1,168-1,172 and our major level is at 1,160-1,162.

The healthy sector rotations continues, with commodities leading the way last week.

Oil–the USO broke above $40.40, a level we noted several times last week. Now it seems like $42 is the next resistance and then new highs.

OIH–is back in the game and has some room to $128-129 before a rest. This all after Obama’s new drill plan.

Gold–GLD broke its symmetrical triangle to the upside. We are back long GLD with an average price of $109.50.

Newmont Mining (NEM), AngloGold (AU) and Rangold Resources (GOLD)–each had big moves last week.

Freeport McMoran (FCX)–this too is on its way to new highs, looking to finally break out from a multi-month range.

Alcoa (AA)–downgraded this morning, but still looks worth a trade if it gets above $14.82.

Tech–this area will be choppy NOW!!! Some will continue and some will be put in the penalty box based on earnings.

Apple (AAPL)–no real pattern here. The last buy price was around $226-227. The iPad is now out and the event usually brings in profit-takers.

Research in Motion (RIMM)–after “soft earnings” it needs some time to build a new lower pattern.

Amazon (AMZN)–had a potent down day on Thursday and needs time now.

Cisco (CSCO), Intel (INTC)–continue to just hang around their upper ranges.

VMWare (VMW)–has a very choppy upper range and is very tricky.

Google (GOOG)–held $560 and was upgraded this morning. It seems ready to fill the gap up to $580.

Baidu (BIDU)–is resting in the $597-610 range. See which way it resolves.

The Banks–for the most part they look “o.k”

Bank of America (BAC)–the pattern is setting up for another move higher if it can get and stay above the $18.10-18.30 range.

JP Morgan (JPM)–this also looks ok, but is very slow.

Goldman Sachs (GS)–this is the wild card…it lagged a bit last week, but if it can get above $172 with volume, it could put it back in the mix. Such a move would juice the market. However, if it breaks $169.75 there could be a problem.

AIG (AIG)–the range is getting tight and it must get above $35-35.50 and hold on massive volume to put this back in play.

Casinos: after numerous “negative calls” continue to hang tough.

Wynn Resorts (WYNN)–above $78 should get a move to the low $80s.

Las Vegas Sands (LVS)–is also hanging tough at its upper levels. A trade through $21.95 and a hold above $22 could put this back on track to the $23-24 area.