Scale 'em and Trail 'em...

By: Scott Redler

Scale ’em and Trail ’em is a term I use after you enter your positions and the stocks breakout of sound price patterns! Last week there were a ton of entry points in every stock and sector–and even the indices to–the questions now are: how long will you hold them? What time-frame are you trading? And can you fade some stocks into big resistance in a calculated fashion without getting run over?

The S&P:

Last Monday the market was wedged up with volatility contracting. The time to enter long was on the breakout from the wedge through 1,110-1,115. We are now ready to tag the old highs of 1,150. The market is very overbought, so the next few days could be tricky. As long as we hold above 1,126-1,130 I do think we will tag those old highs sooner rather than later. I would put big odds that we hit 1,175-1,185 before we test 1,100 again. This momentum could continue into Mid-April to early May.

Tech and the Russell 2000 made new move highs first–THIS IS THE WAY IT SHOULD PLAY OUT!

Sector Rundown:

Tech:

Apple (AAPL)–not much to say. I listed it as a buy at $210.50, then again at $215.50 and said to turn off your computer and wake up Monday morning to sell this above $220. Sure enough, it’s $220.50ish.

Amazon (AMZN)–this also triggered above $121, and again at $127. Now it looks to have big resistance in the $131-132 area, so no clear cut entries are left for now.

Baidu (BIDU)–we have a new pivot on place now. There could be an entry at around $525.50, but it’s a tough entry as we stair-step higher.

Google (GOOG)–big 5-day move from %520 to almost $567. Big resistance checks in at $570-575. I would not be a buyer up here and might even look for a micro short.

Research in Motion (RIMM)–was upgraded today after showing some relative weakness on Friday. Maybe this will get the stock going. $71.80-72.20 is a big area to watch.

Intel (INTC)–THIS MIGHT GET ITS ONCE A YEAR MOVE ON! I would be a buyer above $20.90 and add above $21 if it holds on a 60 minute basis. We should see new move highs VERY SOON HERE!

The Three Amigos:

VMWare (VMW)–this is my stock of the year. It’s very stretched right now. If you’re holding it long-term sell some calls and collect your premium, as it can use a rest.

Cree (CREE)–it look a little 5-day rest last week. Not sure if it’s letting the market catch up, OR if it means a big more of a correction is coming on a break of its upper levels. Wait and see here.

Intuitive Surgical (ISRG)–stills needs to rest a little bit.

The Banks/Financials:

Each bank stock is taking turns setting up.

JP Morgan (JPM)–was the first to go, then had a nice flag pattern Friday which helped tack on some gains. Now it needs a rest.

Wells Fargo (WFC)–I had a buy price last week and it performed great through there. Now this too needs rest.

Goldman Sachs (GS)–finally woke up! This gave us a great two-day move off of the $160 buy price. It closed over $167 and now can use some time.

Visa (V) broke out on Friday and should continue through Friday’s high of $88.56.

Mastercard (MA) was a better trade Friday as it entered its earnings gap. There’s still room here.

The Casinos:

Las Vegas Sands (LVS) – MGM (MGM) – Wynn Resorts (WYNN) all look like slow holds for the next few weeks.

Commodities:

U.S. Steel (X)–does not stop (got hurt a bit testing out a micro short) and now it’s been upgraded at Goldman. We put a buy on it at around $45 and now GS upgrades it at $60–earning their paycheck!