By Scott Redler
At this point the market is sitting at new highs of the year, I hope all of you have taken advantage of this action. If you read my daily letter, I assume you are not fighting the tape! The rotation continues to impress, with different 1-3 day breakouts taking place that pay us handsomely!
With that said, here we are at earnings season, and the announcements this week could be a catalyst for another move higher. It starts with Alcoa after the close today, followed by INTC, JPM, GE, and GOOG later in the week among others.
I don’t think this will be the “Sell the Earnings” under any circumstances like last quarter, but you may get situations like RIMM, where the stock came a long way, earnings come out lukewarm and it’s now in the penalty box.
My gut tells me we don’t just tag DOW 11,000 and fail, but rather I do think we will get into the 11,150-11,400 area before we have a 4-5% correction or more.
The S&P at some point into this move could touch the 1220-1228 area. Despite my gut feelings, I will watch for the action to confirm.
Tech
AAPL: continues higher and is one to watch for any type of complexion change. The last two macro set-ups were 215.50 the adding above 226-227, now it’s just churning higher with everyone trying to pick prudent spots to take profits without leaving to early.
AMZN: still has nice set ups. the last one was last week around 137—now I think you can add 141.35 to test the old highs of 146.
MSFT: gave us a nice move last week, now is not the place to get heavy. I listed it at 29.70 then again at 30, but now it’s up to you to decide where you want to get involved.
VMW: This is my A+ set-up this morning. Great looking pattern, look to buy this through 55- and make sure it holds above—for a new move to the 60 area
GOOG: everyone is starting to hate this stock. It continues to hold 560 and if shorts get scared before earnings this week we can get a quick trade if it gets above 570 with some volume.
Financials
GS: great trade last week at 172 and 175, now it could rest a day or so. I would love to see a new set up and buy it at 181 for a move back to the 185-188 area.
BAC: should hit 19+ before earnings.
JPM: churning higher, no real set up.
CASINO’S
LVS, WYNN AND MGM—All of my best friends! Could use a bit of a consolidation. I am flat them as of Friday and will look to get back in “just for a trade”. We’ve seen 20% moves in all of these since my buy prices in the last month.
Miscellaneous
AA: 5 downgrades in last month so I don’t think there is big time expectations here so this might be a buy into earnings. I’d use in the money options to know risk.
AIG: great trade last week and some news this morning. If it can get above 40 and hold it can go again to the 42.20 area.
AOL: nice move from 26.50 to 28 ish, and should see 30 at some point in next few weeks. I took 75% off and will trail the rest.
IRE: Irish bank has a nice set up, and with the European-Greece news maybe this goes again. 9.70-9.80 is the buy zone.
Commodities
OIH: Looks good. With more time I would look for a move above the 128-129 area.
GLD: Awesome move from 109.50-110 buy zone through the Symmetrical Triangle- now it’s hard to figure out where to sell without taking too much off. I sold most and holding small amount. Gold will probably pull in and test the 1150 area, so maybe that where you buy if you missed this one.
