Yesterday the S&P tested the 1260-1262 area for the second day in a row and held again. Strong stocks couldn’t go lower. Apple Inc. (AAPL) was super strong and Marc Sperling’s Play of the Day Netflix Inc. (NFLX) was a monster. Banks couldn’t break Friday’s lows, and Gold held support for the fourth day (GLD at $133.10). Combine all those ingredients and you get a reciple for bear stew! Keep riding this channel until it breaks and closes below. It now seems like we will see 1300 sooner rather than later on the S&P.
While the market has shown indecision during the new year, it feels like a lot of the stocks we watch have been acting well. Solar stocks came on our radar on Thursday of last week when no one wanted them. Now, they are all at least 10% higher, or much more in the case of LDK Solar Co., Ltd. (LDK) which raised guidance and triggered the bounce. It just goes to show you, if you are an active trader looking to be in the right place at the right time there is lots of opportunity. Now, after these moves, there are lots of upgrades coming out. Makes me chuckle…
Select TECH STOCKS still look good for new entries and follow-through to the upside.
Apple Inc. (AAPL) is close to $345, almost 20 points higher than my most recent buy signal. Long-term this one is a buy. Steve Jobs’ health is the only thing that can derail this one way train.
Netflix Inc. (NFLX) was Marc’s Play of the Day yesterday and it ignited through $180.50-181. The controversial, highly shorted momentum stock put in a textbook consolidation and broke above with authority, once again frustrating Netflix bears. It was a great opportunity to add cash flow with limited risk out of a base and has more upside.
F5 Networks, Inc. (FFIV) also was on our radar yesterday. It break above the buy price of $139 and we got a decent mini morning pull back this morning where you could potentially enter as it makes new highs.
Google Inc. (GOOG) has bounced nicely in 2011, and I think it is the beginning of another strong chapter for the stock. The next spot to add is through $618. My target for this stock on the year is around $750. I hope they consider splitting it at some point too.
Deckers Outdoor Corp (DECK) was a big winner from the second half of 2010, and after a slight pullback looks ready to go again. The buy area this time around is between $81-82. Let’s hope their pitchman Tom Brady doesn’t perform as well as the stock this weekend against my Jets.
Research in Motion (RIMM) is a different sort of play than the rest of the aforementioned tech leaders, but is on my radar nonetheless. It recovered in the second half of 2010 from a tough stretch that saw its value cut by more than 40%. I’m in tier one here and think it can get going at some point through $64.
The CASINOS still look good.
Las Vegas Sands Corp (LVS) core entry should have been around $47-$48 technically, and now its on the road back to the highs. I still think you can buy it long term.
MGM Resorts International (MGM) with a bit more time should break through $16.66 and into the abyss. Although it is the laggard of the group, I think it presents great opportunity here.
WYNN Resorts Limited (WYNN),the true leader of the group, has been a monster so far in 2010 but unfortunately I haven’t laid down the chips on this one. I am bullish on it as well, but it may be a bit extended here.
The BANKS started to perk up early last week before faltering, but I think they will continue to be a recovery story in 2011 as Washington continues to protect corporate interests.
I re-entered Bank of America Corp (BAC) yesterday when it went positive around $14.25 and it now looks to fill gap through $15. Morgan Stanley (MS) raised it to a tactical buy today.
I also bought Citigroup Inc. (C) in decent size for first time in years believing it can see $5.40-$5.80 in this next move over the first quarter of 2011.
Goldman Sachs Group Inc. (GS) is still the cream of the crop and the one I believe should be first on your list of long term bank buys. In the more immediate term, GS looks okay as it held the $168 support level.
Read my post on Power-One Inc. (PWER), which looks enticing for a move through the highs of last year.
NYSE Euronext (NYX) I own small and will add through $31.30. This stock has been in a tight range for months but the pattern looks good for a breakout.
Sify Technologies Limited (SIFY) and Rediff.com India Limited (REDF) are accelerating out of methodical uptrends and look like they want higher prices.
Rare earth stocks are a bit out of play right now, but with time they will be back in play.
I will be traveling to Florida later this afternoon through the rest of the week and will not be sending my normal posts. I might relay a small update from time to time but don’t expect too much. The rest of the team will pick up the slack.
*DISCLOSURE: Long RIMM, LVS, BAC, C, PWER, MGM, SIFY, NYX; Short SPY
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